The Benefits Of Markets
New York’s competitive wholesale electricity markets bring investment, efficiency, and transparency to the Empire State’s energy sector. The incentives built into the NYISO markets have served as a catalyst to improve the efficiency and availability of New York’s power plants, spur investment in new plants where they are most needed, improve the resource mix of generation, including significant growth of “green power” from wind projects, and cultivate demand side programs to reduce consumption during peak-use periods.
Nearly 9,200 MWs of new generation have been built by public power and private suppliers since 2000, with over 80% sited where demand is greatest (New York City, Long Island and the Hudson Valley.)
Since 2000, nearly 1,700 MWs of new transmission capability have been added in New York State. Of that total, 1,290 MWs were built to bring more power from out of state.
Power plants in New York improved their operations with increased availability as they reduced the length of planned and unplanned outages. In addition, plant owners had an incentive to upgrade their facilities, while investment dollars flowed to newer, more efficient plants. This has resulted in a 28% improvement in system-wide heat rates in 2011 as compared to 2000.
Green Power Growing
More than 1,400 MWs of wind generation were in operation by 2012. Another 4,000 MWs of wind projects have been proposed for grid connection.
From 1999 to 2011, power plant emission rates (tons/year) dropped by double-digits. SO2 rates declined more than 86%. NOx rates dropped more than 76% and CO2 rates dropped by 36%.
Demand response programs -- innovative incentives for electricity customers to reduce their power during times of peak demand -- have grown in competitive markets and now provide over 2,000 MW of alternatives to traditional power resources.
Lower Wholesale Power Costs
Wholesale electric energy costs reached historic lows in 2009 – 50% lower than in 2008 -- driven by lower electricity use and drops in the prices of natural gas (one of New York’s primary generating fuels). Despite an increase in demand, 2011 costs remained near 2009’s historic lows.
Jobs & Investments
Since 2000, more than $10 billion has been invested in New York power-producing infrastructure, by companies providing 10,000 jobs and paying annual taxes exceeding $500 million a year.