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Two
key upstate New York newspapers have editorialized against
a proposed state-government mandate that would require individuals
and businesses to buy electricity from costly renewable sources.
"New
York's Public Service Commission should dismiss New York administrative
law Judge Eleanor Stein's recommendation that by the year
2013, fully 25 percent of retail electricity sales come from
renewable sources," the Ithaca Journal wrote in "Cautious
approach: Good intentions, unrealistic solution," a July 7
editorial.
On
the same day, the Buffalo News voiced strong doubts about
the proposal. "Count us among the skeptics," it editorialized
in "Unintended consequences: Having once made a disastrous
mistake Albany plans to again manipulate energy."
The
"recommended decision" issued by the administrative law judge
in early June urged the PSC to mandate that 25 percent of
the electricity bought by consumers and businesses come from
renewable sources-power that is generally more costly than
electricity generated by conventional energy sources. The
25 percent renewable-energy standard was first proposed by
Governor Pataki in January 2003.
The
Business Council supports renewable power, but staunchly opposes
any forced-purchase mandate because it would inflate electricity
costs that are already above average-by 45 percent for commercial
ratepayers and 70 percent for residential ratepayers, according
to the latest federal data.
"Is
the 25 percent goal attainable? Perhaps," the Journal's editorial
continued. "But it would be irresponsible to gamble the well-being
of New York residents and the health of the state's economy
before it is clearly proven that such additional renewable
energy sources can reliably meet an additional 8 percent of
the electricity demand at a reasonable market rate."
The
Journal said there are good reasons to develop renewable energy,
and that tax breaks for utilities that embraced these technologies
"could serve as a strong incentive to accelerate energy production
from renewable sources."
But
it added: "For the immediate future, dependence on coal and
other non-renewable sources must continue until renewable
sources are developed to the point where they are economical,
reliable and bountiful enough to supply residential and commercial
needs."
"Mandating
that a quarter of the state's power come from as yet unproven
sources is not only unrealistic, it could inflict significant
damage on the state's economy and the ability of everyday
residents to afford living here," it concluded. "Albany should
understand by now that unfunded mandates represent a foolish,
destructive approach to government."
The
News said potential benefits from renewable power to not justify
a mandate to buy it, and agreed with the Journal that incentives
to use renewable power are preferable to mandates.
"New
York exists in the real world, one in which it habitually
places itself at a competitive disadvantage," the News' editorial
said. "The mandate to increase New York's consumption of renewable
energy to 25 percent in the next 10 years is a gamble that
could easily backfire."
The
editorial warned that the recommended decision's estimate
of likely cost increases may be law, citing the state's "disastrous
'6-cent law,'" in which an inaccurate prediction of cost trends
by state lawmakers eventually forced ratepayers to bear substantially
higher energy costs than market forces would have created.
"So much for government's ability to manage markets," the
News wrote.
"Skeptics
worry that government has no track record at creating demand,
and that the mandate is more likely to create adverse unintended
consequences - as in the 6-cent law - than it is to produce
the intended result," the editorial said. "New York's track
record in this regard inspires no confidence. What is more,
the costs of living and doing business in this state are so
far above the national average that any plan to raise those
costs, whatever their benefits, need to be considered carefully
- far more carefully than this proposal has."
The Binghamton Press & Sun Bulletin expressed
reservations about the proposal in a June 11 editorial, citing
arguments from The Business Council about the shortsightedness
of increasing energy costs at a time when New York has long
been hemorrhaging jobs.
That editorial, Energy Alternatives, saw value
in a strong commitment to renewable power and in New York
being a leader in that quest, but added: As New York
hobbles along in the valley of debt, perhaps it should yield
that progressive thinking title to the federal government.
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