BUFFALO, N.Y. — The implementation of New York State's "ambitious" clean energy transition plan under the 2019 Climate Leadership and Community Protection Act has drawn scrutiny from the New York State Comptroller's Office as to its planning and costs in a newly released 58-page audit report.
In a statement to 2 On Your Side, State Comptroller Press Secretary Mary Mueller says that "we stand by the audit’s findings and recommend PSC improve planning and transparency. PSC should release a comprehensive review of the CLCPA, including analyzing current and future risks and transparently sharing the costs associated with a clean energy transition.”
In the summary of this report released Wednesday, Comptroller Thomas DiNapoli who is a Democrat said, "New York is moving in the right direction to transition to renewable energy but , but we found better planning, monitoring of progress and timely assessment of risks by PSC is needed to achieve our ambitious clean energy goals,” DiNapoli said.
“New York has been a leader in its efforts to reduce greenhouse gas emissions and the threats caused by climate change, and identifying existing and emerging challenges will improve the likelihood that we succeed.”
It also noted that "the absence of cost estimates also makes it difficult, if not impossible, to assess its impact on New Yorkers, including those who are currently struggling to pay their utility bills and who have faced rising costs over the past two decades."
The audit also reports that the New York State Independent System Operator, the agency which monitors the state's utilities and power grid reliability (that is the ability to meet power demands across the state) actually met with the state-appointed council implementing the climate act.
But the audit relates that ISO officials said their information was not used in setting goals or time frames. Some ISO officials have raised concerns about the potential increased power demand for electric cars and electric-operated appliances, such as heat pumps, as the state phases out fossil fuel power production and seeks to replace it with totally renewable energy sources.
The current plan calls for 70 percent renewable energy by 2030 and complete net zero emissions power production by 2040.
Republican State Senator George Borrello of Jamestown told 2 On Your Side, "You're talking about a tremendous amount of government subsidy, a tremendous amount of essentially shifting the burden to the middle class and to our employers in order for them to meet those types of goals. The taxpayers and ratepayers of New York State, they need to look at this coming from a Democrat who has been in this business a very long time, and sounding an alarm bell."
State Senate Minority Leader and Niagara County Republican Senator Robert Orr said through a spokesman, "The Comptroller’s report only reinforces what I, along with my conference, have been saying since the progressives in our state’s legislature have embarked on forcing their unrealistic climate goals upon our state. Today’s audit proves our state is not physically or fiscally ready for this far-left pipedream and the goals set forth by it are a threat to the future reliability of our grid. We should instead focus our efforts on New York First energy policies that embraces all forms of energy. Period."
The Public Service Commission decides on utility rate hike requests and at a February 2023 meeting approved a $5 billion dollar plan (according to PSC) to upgrade power grid reliability but also build out transmission lines to connect renewable energy sources like solar and wind to the grid.
Back then former Commissioner John B. Howard (who was replaced on the Commission Board by Governor Hochul in February 2024) stated during that meeting as he voted no on the plan, "It will be after the (energy) bill impacts hit, and I guarantee you, when these costs hit our rate (increase request) cases, the howl from these same constituencies will be heard from here to Timbuktu."
We have reported that this year that National Grid says part of its proposed $19 increase for monthly bills is in part for renewable energy which they indicate might eventually cut costs. NYSEG is also seeking PSC approval for $30 more on monthly bills in a three-year phased increase. It is also due in part to renewable energy connections with the power grid.
2 On Your Side has pressed Gov. Kathy Hochul on this situation. In 2023 she replied to our questions on costs during a news conference. Back then she stated:
Hochul: "The numbers are not clearly known right now."
Reporter: "It was approved, governor, by the PSC."
Hochul: "Not in that transition point right now and it doesn't consider the offsets that I'm offering from the state government to reduce the burden on our ratepayers. And I think that's what's missing in the telling of this story. Simply looking at numbers without understanding that we're working to get an offset from the state in this transition period."
The Comptroller's Audit on page 1 states "The Climate Act was expected to have both fiscal and programmatic impacts on several State agencies and authorities. However when the CES (Clean Energy Standard( and Climate Act were passed (in 2019) no State or federal funding were budgeted. Currently, almost all funding to support the CES and Climate Act programs is ratepayer based. New York state ratepayers have contributed almost $2.6 Billion to the CES program from 2016 through 2021."
2 on Your Side requested but has not so far received a response from the Governor's Press Office.
The PSC responded to the audit report. in this way: "DPS (Department of Public Service) is pleased to note that OSC found that the PSC and NYSERDA have taken considerable steps to transition to renewable energy in compliance with the Climate Leadership and Community Protection Act (CLCPA) and Clean Energy Standard (CES) but is disappointed that OSC overlooks several significant steps taken and factors that have impacted progress to date.
"Indeed, in the five years since the CLCPA was enacted, the PSC modified the existing CES to comply with the law, directed NYSERDA to continue undertaking solicitations for new renewable projects in the face of unprecedented and evolving market conditions outside of New York’s control, approved $5 billion in transmission investments to support renewable projects, worked with federal, state and local governments on renewable energy initiatives that have reduced the ratepayer costs of complying with CLCPA (potentially saving ratepayers billions of dollars), partnered with the Legislature to streamline the siting laws for renewables and transmission projects, advanced critical planning proceedings to ensure the energy transition is done in a safe and reliable manner, and expanded utility affordability initiatives.
"Much of this work appears to have been discounted in the OSC report, and the Department's response highlights several instances where it disagrees with OSC's findings.
Again this from the Comptroller's Office spokesperson, "We stand by the audit’s findings and recommend PSC improve planning and transparency."