INFLATION ADJUSTMENT REBUFFED — POLITICO’s Marie J. French: Gov. Kathy Hochul’s administration Thursday rejected a request from companies for bigger payments to complete large-scale wind, solar and offshore wind projects — leaving the developments in doubt and threatening New York’s ability to meet its climate goals. The dismissal by the Public Service Commission sets off a scramble for developers to decide whether to cancel contracts with NYSERDA, sacrificing millions of dollars in security payments. It also places New York’s clean-energy ambitions in peril. The state’s landmark climate law requires 70 percent of electricity in 2030 to come from renewable resources. The projects seeking higher payments — four offshore wind and 86 land-based renewable projects — represent 25 percent of the forecast electricity demand in 2030. The increases, if approved, would have totaled about $12 billion net present value, doubling the costs to ratepayers of the existing contracts as Hochul has warned about the stress that higher rates would have on residents. Hochul said in a statement the decision by the PSC was necessary to maintain affordability and preserve the competitive process. “Make no mistake: my commitment to building a clean energy economy is as strong as ever,†she said. “New York will continue to advance an affordable clean energy future, and I have directed state agencies to undertake an accelerated process to procure renewable energy as affordably and quickly as possible.†NYSEG/RG&E RATE HIKE — POLITICO’s Marie J. French: The state Public Service Commission on Thursday approved a large rate hike for two upstate utilities owned by Avangrid at its Thursday meeting. NYSEG serves nearly 1 million electricity customers and 270,000 gas customers. RG&E serves 386,000 electricity customers and 320,000 natural gas customers. Higher bills will begin in November. The increase over the three years of the rate case on the delivery portion of the bill will total about 62 percent for NYSEG electric customers, 17 percent for NYSEG gas, 37 percent for RG&E electric and 34 percent for RG&E gas. The annual increases come to about 17 percent each year for NYSEG electric customers and 5.6 percent for NYSEG gas customers. It will be about an 11 percent a year increase for RG&E electric users and 10.2 percent for RG&E gas customers. The companies will be entitled to a return on equity of 9.2 percent. The utilities had asked for a 10.2 percent return. EDWARDS DEPARTS — POLITICO’s Marie J. French: Public Service Commissioner Tracey Edwards announced she’d be stepping down from her post after a marathon public session on Thursday. “I hope I made an impact. I absolutely had a blast,†Edwards said. “Thank you for this opportunity to serve for the state of New York and all of its wonderful, wonderful residents.†Edwards said she has completed 10 years of public service. She’s going to serve on the board of the NAACP and work in the private sector, she said. Edwards also said she’d lost her mother in the last month. BUILDING LAW CHALLENGED — Times Union’s Chris Hippensteel: “A group of businesses, trade associations and labor unions filed a federal lawsuit Thursday challenging the legality of New York’s ban on gas stoves and furnaces in new residential buildings — a central pillar of Gov. Kathy Hochul’s push for green energy.†PRESSURE ON HOCHUL, PSC — POLITICO’s Marie J. French: Environmental advocates and labor leaders are expressing mounting alarm that the state utility regulator will reject a request from renewable developers for bigger subsidies, jeopardizing major projects and New York’s climate goals. The decision by the Public Service Commission on the inflation adjustment requested by offshore wind developers and onshore wind and solar projects that have state contracts is currently scheduled for Thursday. They’ve warned that if re-pricing isn’t approved, the projects won’t go forward. “The most irresponsible outcome at this point would be for all parties to walk away,†said Ryan Stanton, the executive director of the Long Island Federation of Labor, AFL-CIO. “We do believe there needs to be some relief to make the economics possible.†EIS FOR TURNPIKE EXPANSION — POLITICO’s Ry Rivard: New Jersey is shying away from controversial elements of a New Jersey Turnpike expansion near the mouth of the Holland Tunnel, likely pushing it back years, and instead focusing on replacing an aging bridge. The New Jersey Turnpike Authority on Wednesday unveiled a draft environmental impact statement for its turnpike extension project that studied a $6.2 billion plan to replace the aging Newark Bay Bridge, as well as more than a dozen other structures along a 4.1-mile stretch of the turnpike between interexchange 14 in Newark and interchange 14a near the border of Bayonne and Jersey City. The bridge, between Newark and Bayonne, N.J., would be replaced with two new spans. “The focus is on replacing the Newark Bay Bridge and the associated bridges from 14 to 14A,†said Lisa Navarro, the Turnpike Authority’s lead engineer on the project.
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