New Yorkers Deserve Urgent Answers to the State's Energy Crisis
Senator Kevin Parker and Senator James Wright at the public hearing on cell phone reliability.
As New Yorkers struggle to answer some basic questions in the aftermath of the largest power outage in US history, the same unfortunate dynamics that helped cause this crisis remain in play. What we have seen since August 14 is the usual finger-pointing blame game between New York’s branches of government and political parties. But what New Yorkers deserve now is a clear-eyed assessment of the weaknesses in our energy policy and systems and a nonpartisan commitment by the Governor and Legislature to fix the problem. What is beyond dispute is that New York’s power system, particularly its outdated transmission and distribution systems, is weak, vulnerable and needs immediate attention. The New York Independent System Operator (ISO), which oversees the reliability of the system and the sale of electricity from producers to distributors, has reported that energy demand was not even close to energy supply the day of the blackout. Supply is not the problem — transmission is. Since deregulation began in New York State in 1996, responsibility is not clearly defined for maintaining the state’s transmission system and putting in place safeguards that might prevent failures in one part of the grid from affecting other parts of the grid. The transmission/distribution system — the wires, the towers, the substations and converters, have become dangerously overloaded, overused, overheated and highly susceptible to equipment failure. As the Ranking Minority Member of the Senate Energy Committee, I have strongly advocated reforming New York’s energy policy, including reinstating the State Energy Planning Board, which we’ve let expire, promoting a comprehensive energy plan for the metropolitan area, innovative approaches to lowering energy costs for consumers, and renewing the state’s fast-track process of power plant siting with provisions that will insure that the health and well-being of all New York’s diverse communities are protected. New York’s top priority needs to be development of a comprehensive energy policy and investment in new energy infrastructure. That is why I am urging the Governor to call a special session of the Legislature this fall to begin putting in place a broad-ranging policy designed to safeguard communities against further breakdowns in the system. Here are some of the issues we need to address: The ISO wields enormous power in controlling New York’s energy system and (in the absence of political leadership) shaping energy policy. Yet the ISO answers to no elected official or government entity. We have to find a way to put more public accountability in how the system is managed. New York must do a better job at developing alternative energy sources and new technologies, and conserving energy usage. Let’s make sure that a month or two from now the efforts to conserve energy that we saw immediately after August 14 do not lose their urgency. New York must upgrade its outdated transmission lines and substations to properly manage the state’s every-increasing energy demands, particularly in the downstate metro region, and increase the efficiency of its delivery system through new technologies to reduce the highest-in-the-nation residential and commercial utility rates. Deregulation was supposed to encourage energy suppliers to make these investments in order to stay competitive. Unfortunately, that has not happened, the ISO has no authority to compel utility companies to upgrade their lines and substations, and without new utility rate increases, the companies do not have the resources for investing in modernization. In 1998, for example, transmission line investment was down to $90 million (barely enough to keep the system operational) compared to a high of $340 million less than a decade before. Reauthorizing Article X (the major power plant siting law) is vitally important to New York’s economic future. The reality is we are going to have to build new power plants in the foreseeable future to meet our state’s energy demands. But we must also reform the process to insure local participation in the decision-making process and preserve our commitment to clean air and water. The recent power outage has cost New York City alone over a billion dollars in lost tax revenues, productivity, and private sector sales and inventory. Clearly, New York’s economic future depends on a well-managed world-class energy system. What is lacking now is a long-term commitment and vision for an energy efficient future. New York needs to use the lessons of this energy crisis as an opportunity. We must come together — the Governor, Legislative leaders, utility companies, energy industries, and environmentalists — to develop a new energy policy that will protect our environment, encourage economic growth and job development, and put new public accountability and trust into the system.
As New Yorkers struggle to answer some basic questions in the aftermath of the largest power outage in US history, the same unfortunate dynamics that helped cause this crisis remain in play. What we have seen since August 14 is the usual finger-pointing blame game between New York’s branches of government and political parties. But what New Yorkers deserve now is a clear-eyed assessment of the weaknesses in our energy policy and systems and a nonpartisan commitment by the Governor and Legislature to fix the problem.
What is beyond dispute is that New York’s power system, particularly its outdated transmission and distribution systems, is weak, vulnerable and needs immediate attention. The New York Independent System Operator (ISO), which oversees the reliability of the system and the sale of electricity from producers to distributors, has reported that energy demand was not even close to energy supply the day of the blackout. Supply is not the problem — transmission is. Since deregulation began in New York State in 1996, responsibility is not clearly defined for maintaining the state’s transmission system and putting in place safeguards that might prevent failures in one part of the grid from affecting other parts of the grid. The transmission/distribution system — the wires, the towers, the substations and converters, have become dangerously overloaded, overused, overheated and highly susceptible to equipment failure.
As the Ranking Minority Member of the Senate Energy Committee, I have strongly advocated reforming New York’s energy policy, including reinstating the State Energy Planning Board, which we’ve let expire, promoting a comprehensive energy plan for the metropolitan area, innovative approaches to lowering energy costs for consumers, and renewing the state’s fast-track process of power plant siting with provisions that will insure that the health and well-being of all New York’s diverse communities are protected.
New York’s top priority needs to be development of a comprehensive energy policy and investment in new energy infrastructure. That is why I am urging the Governor to call a special session of the Legislature this fall to begin putting in place a broad-ranging policy designed to safeguard communities against further breakdowns in the system. Here are some of the issues we need to address: The ISO wields enormous power in controlling New York’s energy system and (in the absence of political leadership) shaping energy policy. Yet the ISO answers to no elected official or government entity. We have to find a way to put more public accountability in how the system is managed. New York must do a better job at developing alternative energy sources and new technologies, and conserving energy usage. Let’s make sure that a month or two from now the efforts to conserve energy that we saw immediately after August 14 do not lose their urgency.
New York must upgrade its outdated transmission lines and substations to properly manage the state’s every-increasing energy demands, particularly in the downstate metro region, and increase the efficiency of its delivery system through new technologies to reduce the highest-in-the-nation residential and commercial utility rates. Deregulation was supposed to encourage energy suppliers to make these investments in order to stay competitive. Unfortunately, that has not happened, the ISO has no authority to compel utility companies to upgrade their lines and substations, and without new utility rate increases, the companies do not have the resources for investing in modernization. In 1998, for example, transmission line investment was down to $90 million (barely enough to keep the system operational) compared to a high of $340 million less than a decade before. Reauthorizing Article X (the major power plant siting law) is vitally important to New York’s economic future.
The reality is we are going to have to build new power plants in the foreseeable future to meet our state’s energy demands. But we must also reform the process to insure local participation in the decision-making process and preserve our commitment to clean air and water. The recent power outage has cost New York City alone over a billion dollars in lost tax revenues, productivity, and private sector sales and inventory. Clearly, New York’s economic future depends on a well-managed world-class energy system. What is lacking now is a long-term commitment and vision for an energy efficient future. New York needs to use the lessons of this energy crisis as an opportunity. We must come together — the Governor, Legislative leaders, utility companies, energy industries, and environmentalists — to develop a new energy policy that will protect our environment, encourage economic growth and job development, and put new public accountability and trust into the system.
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