The NYS Public Service Commission is halting the approval process for construction of new transmission lines to bring offshore wind power into the New York City downstate region, citing President Trump’s opposition to such projects, the groups said.
The decision leaves New York’s green energy law in shambles — and is a blow to the offshore wind industry’s push to become a major power player, energy industry sources said.
Gas and electric utility customers would pay for the costs of the transmission lines to transport wind power that doesn’t exist, leaving them vulnerable to rate hikes — since the Trump administration blocked the issuance of new permits and leases for offshore wind projects.
The PSC board members who are appointed by Gov. Kathy Hochul, who is running for re-election and pledging to make costly New York more affordable, said they wouldn’t take that risk.
The PSC said it is “strategically terminating” approvals to design and build transmission lines to transmit offshore wind power, “ensuring New Yorkers are not burdened with premature infrastructure costs.”
“One of our most important tasks is to protect consumers,” Commission Chair Rory Christian said in a statement.
“Given the uncertainty coming out of Washington regarding offshore wind, we must act to protect consumers by withdrawing our [approval process], but this is far from the end of the story. We will continue to press forward regarding infrastructure needs for offshore wind in the future once the federal government resumes leasing and permitting for wind energy generation projects.”
The decision to postpone approval of transmission line puts New York farther behind to comply with clean energy mandates under the Climate Leadership and Community Protection Act signed six years ago, energy industry sources said.
Some 70% of energy produced in New York is supposed to come from renewable sources by 2030 under the law. The energy sector must achieve net-zero carbon emissions by 2040, according to the law.
John Howard, a former PSC chairman, said the state utility regulators bowed to reality.
“It’s a big deal. The Climate Act is not working. We will clearly be missing the emission deadlines by a mile,” Howard said.
But New York’s green energy sector criticized the PSC’s decision to postpone the building of wind power transmission lines.
“We need our state to invest in transmission infrastructure and support a grid that will meet rising energy demand while also enabling long-term ratepayer savings…..here is no time to wait. The most cost-effective energy future for New York includes a significant amount of offshore wind,” the The Alliance for Clean Energy New York and the New York Offshore Wind Alliance (NYOWA) said in a joint statement.
The groups said offshore wind projects can take more than a decade to develop, spanning state and federal election cycles that include wind power opponents such as Trump.
Hochul backed the PSC’s decision.
“Governor Hochul has staunchly defended and remains committed to renewable energy projects, including offshore wind, but has made it clear that New York ratepayers need to be protected in this time of federal uncertainty,” said Ken Lovett, Hochul’s senior communications advisor on energy and the environment.
“Given the political hostilities toward offshore wind projects from the federal government, and the resulting economic uncertainties, we agree with the PSC that it would not be fair to saddle ratepayers with costs for a project that may not bear any fruit. We stand ready to rapidly move forward when the conditions become more favorable.”
The decision does not impact the recently approved Empire Wind project being constructed off the New York-Long Island coast by Norwegian-based Equinor.
The governor recently announced she’s planning to build the nation’s first new major nuclear power plant in more than 15 years upstate to help meet New York’s carbon-emissions free goals.
