New York Should Adopt New England’s Successful Policies of Contracts for Renewable Energy

In comments filed with the New York Public Service Commission, RENEW Northeast urged New York to switch from the current NYSERDA budget-based procurement model of renewable energy certificates (RECs) to a target-based system solely of electric utility contracting for renewable energy as found in several of the New England states.  A significant benefit of long-term contracts for consumers comes from lowering the development cost of renewable energy by giving developers and their investors the confidence to commit their capital. Contracting for energy at a fixed-price over a long term will provide consumers with the full benefits of renewable energy whose “free fuel” provides a hedge against electricity price swings caused by the volatility in natural gas and other fossil fuel markets.