NEW YORK - Business organizations at a hearing in Albany on the final New York State Energy Plan said it must emphasize the construction of more power plants to meet future energy needs.
"While the draft plan does state New York is in need of more sources of generation, its projections for growth in electric demand over the next three to five years seem unrealistically - indeed dangerously - low," testified Johnny Evers, The Business Council's legislative analyst specializing in energy. The draft Energy Plan is a blueprint to help energy decision-makers enact policies that ensure that adequate energy supplies are available so customers can choose energy products, including those utilizing the latest technological and environmental developments, that best suit their needs.
Evers noted that the draft State Energy Plan projects growth in peak demand from 0.68 percent to 1.1 percent a year.
"Peak demand has grown an average of 2.1 percent over the past five years," Evers said. "It's grown 1.8 percent a year on average over the last 20 years for total growth over that period of 43.1 percent."
During the late 1990s, New York State, especially in the New York City area, experienced a sharp increase in demand for energy fueled by economic growth, an increasing population and greater use of electronic devices like computers and cell phones.
Because of the unexpectedly high growth in demand, the New York State Energy Research and Development Authority, which oversees energy policy in the state, decided to rewrite the State Energy Plan. The last plan was issued in November 1998.
"Customers have consistently indicated that the most important considerations for energy policy are reliability and quality of service ... and price," said Howard Shapiro, president and chief executive of the Energy Association of New York State.
Members of The Business Council and the Energy Association include the state's large energy users and energy companies.
MORE PLANTS NEEDED
Recently, The Business Council's research affiliate, The Public Policy Institute, estimated that New York must increase its electricity generating capacity by at least 9,200 megawatts over the next five years to keep up with the growing demand.
One megawatt of electricity provides enough power for about 1,000 homes.
The New York Independent System Operator, the state's electricity grid operator, said energy companies have proposed to build more than 40,000 megawatts of new generation over the next five years.
Energy experts, however, have determined that only about one-third of the proposed plant projects are actually built, which should still leave New York with enough power plants to meet its long-term needs.
Specifically, The Public Policy Institute said the new generation was needed to foster continued economic growth, ensure continued reliability of New York's electricity systems and to allow for the robust competition that is needed to drive prices down in the long term.
"For the benefits of competition - lower prices and customer choice - there must be robust levels of supply and a robust, redundant and well maintained energy delivery system.... The state must encourage the market to invest now," the Energy Association's Shapiro said.:
