For Immediate Release: 02/16/2023
Rory M. Christian, Chair
Contact:
James Denn | James.Denn@dps.ny.gov | (518) 474-7080
http://www.dps.ny.gov
http://twitter.com/NYSDPS
23018/21-M-0193
February 16, 2023
PSC Finalizes Audit of Major Utilities Con Edison, O&R
Audit Examined Information Systems Planning and Implementation, Improvements to Support Clean-Energy Goals, Contractor Oversight, and Coordination with Municipalities
ALBANY — The New York State Public Service Commission (Commission) today accepted and made public an independent, third-party management and operations audit of Consolidated Edison Company of New York, Inc. (Con Edison) and Orange and Rockland Utilities, Inc. (O&R). The audit focused on areas that will provide the highest value, while remaining consistent with the statutory directive to review the utilities’ construction program planning and operational efficiency. Other areas examined included information systems planning and implementation, improvements to electric load forecasting processes to support clean-energy goals, contractor oversight, and coordination with municipalities.
“The Commission operates a robust management and operations audit program that includes regular comprehensive management and operations audits, focused operations audits, and statewide utility comparisons,” said Commission Chair Rory M. Christian. “The scope of this audit focused on areas which should provide the highest value, while remaining consistent with the statutory directive to review the companies’ construction program planning and operational efficiency.”
Notable findings from the audit include:
Con Edison’s long-range plans describe a significant business transformation to become a clean energy company adopting New York State’s CLCPA goals. Still, the auditor found that long-term planning is not well aligned with short-term planning.
The auditor discovered that Con Edison and O&R prioritize leak-prone pipe replacement by several variables, including geographical area, emergent work, and risk. The auditor recommends that risk be the primary factor used in pipeline replacement prioritization.
Con Edison and O&R have implemented software to improve estimating accuracy, but NorthStar found they need to actively track the accuracy of the estimated project cost or schedule.
The auditor found that Con Edison’s management variable pay incentive program and O&R’s annual team incentive plan use quantifiable goals to promote the corporate mission, safety and reliability, environmental goals, and Commission objectives; however, the programs could be better constructed to promote continuous improvement.
The Commission last completed a comprehensive management audit of Con Edison and O&R in 2016. The companies also participated in two statewide operations audits along with other large investor-owned utilities in New York. The companies have completed the implementation of all recommendations from these three audits.
The law provides the Commission the authority to conduct management and operations audits of natural gas and electric utilities and requires such audits at least once every five years for large electric and natural gas utilities. Con Edison also provides steam service to customers in New York City. While this audit only reviewed the electric and natural gas operations, Con Edison may be able to apply relevant findings and recommendations to its steam business as well.
The management audit approach in New York includes, but is not limited to, a prospective investigation of the construction program planning process and an evaluation of operational efficiency with a focus on opportunities to improve performance. NorthStar Consulting Group, the selected auditor, analyzed current and historical information to identify opportunities to improve existing processes, practices, systems, and organizational structures to drive better performance.
The audit focused on the electric and gas utility services in New York State. Con Edison’s electric service territory includes all of New York City, with the exception of a section of Queens, and the majority of Westchester County. Electric service is provided to approximately 3.5 million customers in a 660 square mile service area. The company’s gas service territory consists of Manhattan, Bronx, parts of Queens, and most of Westchester County; and supplies approximately 1.1 million customers in those areas. O&R’s electric service territory is located in southeastern New York. O&R’s gas service is concentrated in southeastern New York and supplies approximately 100,000 customers.
In September 2021, the Commission selected NorthStar Consulting Group to perform the audit. Consistent with Public Service Law, the two utilities will file an implementation plan within 30 days of the issuance of the audit report. Once filed with the Secretary, staff will review the implementation plan to ensure it addresses the underlying findings in the audit report. The implementation plan will be submitted for public comment through the SAPA process. The implementation plan, including any revisions resulting from staff's review and further refinement by the utilities, will be presented to the Commission at a future date for approval or modification.
Today’s decision may be obtained by going to the Commission Documents section of the Commission’s Web site at www.dps.ny.gov and entering Case Number 21-M-0193 in the input box labeled "Search for Case/Matter Number". Many libraries offer free Internet access. Commission documents may also be obtained from the Commission’s Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500). If you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding this press release.
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For Immediate Release: 02/16/2023
Rory M. Christian, Chair
Contact:
James Denn | James.Denn@dps.ny.gov | (518) 474-7080
http://www.dps.ny.gov
http://twitter.com/NYSDPS
23016/14-F-0490; 17-F-0599; 17-F-0597
February 16, 2023
PSC Moves 3 Major Wind and Solar Projects Forward
Commission Approves Compliance Filings for Clean-Energy Projects Totaling 266 MWs
ALBANY — The New York State Public Service Commission (Commission) today approved important compliance filings for three major wind and solar farms in upstate New York, part of the continuing effort of the Commission to spur the development of clean, renewable energy in New York State. Actions taken for East Point solar and High River solar are for initiation of certain construction activities. The action taken for Cassadaga Wind is a reporting requirement after one year of commercial operation.
“The solar and wind farms being built across our great State are vital to meet the Climate Leadership and Community Protection Act’s aggressive carbon reduction and clean energy targets to combat climate change,” said Commission Chair Rory M. Christian. “Each of these projects benefit all New Yorkers by reducing our reliance on fossil fuels, boosting clean-energy investment, creating clean energy jobs, and improving our environment.”
The compliance filings relate to the following projects: Cassadaga Wind, a 126-megawatt (MW) project in the towns of Charlotte, Cherry Creek, Arkwright, and Stockton in Chautauqua County; East Point, a 50-MW solar farm in the Town of Sharon, Schoharie County; and High River, a 90-MW solar farm in the Town of Florida, Montgomery County.
Regarding Cassadaga Wind, which is already operational, the Commission today approved compliance filings related to its decommissioning and site restoration plan; regarding East Point, the Commission approved compliance filings related to its sound-generating equipment installation phase; and finally, regarding High River, the Commission approved compliance filings related to its decommissioning and restoration phase. For High River and East Point, there will be other construction phases and approvals required before expected operation in the fourth quarter of 2023.
New York State’s Nation-Leading Climate Plan
New York State's nation-leading climate agenda calls for an orderly and just transition that creates family-sustaining jobs, continues fostering a green economy across all sectors and ensures that at least 35 percent, with a goal of 40 percent, of the benefits of clean energy investments are directed to disadvantaged communities. Guided by some of the nation’s most aggressive climate and clean energy initiatives, New York is on a path to achieving a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and economywide carbon neutrality by mid-century. A cornerstone of this transition is New York's unprecedented clean energy investments, including more than $35 billion in 120 large-scale renewable and transmission projects across the state, $6.8 billion to reduce building emissions, $1.8 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $1.8 billion in NY Green Bank commitments. These and other investments are supporting more than 165,000 jobs in New York’s clean energy sector in 2021 and a 2,100 percent growth in the distributed solar sector since 2011. To reduce greenhouse gas emissions and improve air quality, New York also adopted zero-emission vehicle regulations, including requiring all new passenger cars and trucks sold in the State be zero emission by 2035. Partnerships are continuing to advance New York’s climate action with nearly 400 registered and 100 certified Climate Smart Communities, nearly 500 Clean Energy Communities, and the State’s largest community air monitoring initiative in 10 disadvantaged communities across the state to help target air pollution and combat climate change.
Today’s decision may be obtained by going to the Commission Documents section of the Commission’s Web site at www.dps.ny.gov and entering Case Numbers 14-F-0490 [Cassadaga]; 17-F-0599 [East Point] and 17-F-0597 [High River Energy] in the input box labeled "Search for Case/Matter Number". Many libraries offer free Internet access. Commission documents may also be obtained from the Commission’s Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500). If you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding this press release.
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For Immediate Release: 02/16/2023
Rory M. Christian, Chair
Contact:
James Denn | James.Denn@dps.ny.gov | (518) 474-7080
http://www.dps.ny.gov
http://twitter.com/NYSDPS
23015 / 20-E-0197
February 16, 2023
PSC Approves Upstate Transmission Projects to Eliminate Bottlenecks Constraining Delivery of Clean, Renewable Energy
Transmission Upgrades Needed to Meet Climate Act Requirements
Projects Will Create Good-Paying Construction Jobs in Upstate New York
ALBANY — The New York State Public Service Commission (Commission) today authorized the major upstate electric utilities to develop 62 local transmission upgrades designed to reduce congestion in three upstate regions as called for by the Climate Leadership and Community Protection Act, or Climate Act.
“New York is making significant upgrades and additions to the State’s existing transmission and distribution systems to integrate new large-scale renewable energy projects into the State’s energy supply, and we must ensure that these investments are smart and cost-effective,” said Commission Chair Rory M. Christian. “The Commission recognizes the need to address congestion in certain parts of the State where renewable energy is already bottled and where additional generation projects are in development or likely to be developed in the future.”
In its decision, the Commission approved the requests of Central Hudson Gas & Electric Corporation, New York State Electric & Gas Corporation, National Grid (upstate), and Rochester Gas and Electric Corporation for authorization to develop 62 local transmission upgrades that will reduce congestion in three existing generation pockets in the Capital Region, the southwest, and northern regions of the State.
In total, the 62 projects will create 3,500 megawatts of capacity for clean energy — enough electricity for more than 2.8 million average-sized homes. The lack of transmission capacity in upstate New York negatively impacts ratepayers by increasing the costs of renewable energy resources and curtailing the production of clean energy, among other things. The $4.4 billion estimated cost of the transmission upgrades to construct leverages at least $1 billion in direct benefits to New York companies and localities and avoids billions in excess payments to renewable power producers. The primary purpose and primary benefit of these projects are climate mitigation, which benefits all New Yorkers. The secondary benefits, the direct local benefits, include hundreds of high paying construction jobs and significant tax payments to local municipalities arising from the $10.3 billion in expected capital investment related to the projects.
The approved proposals originated in the Commission’s ongoing proceeding focused on transmission planning to identify electric grid upgrades that are necessary to support the Climate Act’s renewable energy goals. In a 2021 order issued in that proceeding, the Commission recognized that renewable generation output in the three upstate regions was already being curtailed due to the lack of adequate transmission capacity. The Commission also recognized that these areas are likely to see additional renewable generation development in the future. The 2021 order directed the utilities to identify cost-effective transmission upgrades that would address both existing and future congestion on these parts of their systems.
After studying their existing and likely future renewable generation points of interconnection, the utilities proposed local transmission upgrades for each region. These 62 projects include upgrades to existing transmission lines, upgrades to existing substations and construction of three new substations. The utilities plan to complete these projects between 2024 and 2030.
By supporting the delivery of renewable energy to the power system, these investments are a step towards meeting Climate Act goals. In addition to reducing carbon emissions and generating more clean energy, the Climate Act will help create thousands of green jobs in communities across the State — from building trades and technicians to engineers and financiers — making New York a hub for clean energy economic growth while ensuring good-paying job opportunities for all New Yorkers. The development and construction of these local transmission upgrades received strong support from most stakeholders that filed comments on the proposed upgrades, including the Alliance for Clean Energy New York, Inc.
New York State’s Nation-Leading Climate Plan
New York State's nation-leading climate agenda calls for an orderly and just transition that creates family-sustaining jobs, continues fostering a green economy across all sectors and ensures that at least 35 percent, with a goal of 40 percent, of the benefits of clean energy investments are directed to disadvantaged communities. Guided by some of the nation’s most aggressive climate and clean energy initiatives, New York is on a path to achieving a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and economywide carbon neutrality by mid-century. A cornerstone of this transition is New York's unprecedented clean energy investments, including more than $35 billion in 120 large-scale renewable and transmission projects across the state, $6.8 billion to reduce building emissions, $1.8 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $1.8 billion in NY Green Bank commitments. These and other investments are supporting more than 165,000 jobs in New York’s clean energy sector in 2021 and a 2,100 percent growth in the distributed solar sector since 2011. To reduce greenhouse gas emissions and improve air quality, New York also adopted zero-emission vehicle regulations, including requiring all new passenger cars and trucks sold in the State be zero emission by 2035. Partnerships are continuing to advance New York’s climate action with nearly 400 registered and 100 certified Climate Smart Communities, nearly 500 Clean Energy Communities, and the State’s largest community air monitoring initiative in 10 disadvantaged communities across the state to help target air pollution and combat climate change.
Today’s decision may be obtained by going to the Commission Files section of the Commission’s Web site at www.dps.ny.gov and entering Case Number 20-E-0197 in the input box labeled "Search by Case/Matter Number". Many libraries offer free Internet access. Commission documents may also be obtained from the Commission’s Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500). If you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding this press release.
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For Immediate Release
NYS Public Service Commission Authorizes 62 Upstate Transmission Projects
Electric Grid Upgrades Will Allow New York to Pursue Climate Goals
ALBANY, Feb. 16, 2023 — The Alliance for Clean Energy New York (ACE NY) hails today’s announcement by the New York State Public Service Commission (PSC) to approve the request by major electric utility companies to develop 62 local transmission upgrades in three regions of New York. This authorization will help address congestion in energy delivery on the grid in the Capital District, the Southern Tier, and northern regions of the state.
“In order to keep moving towards our clean energy goals, New York needed grid investments in these three locations,” said Anne Reynolds, executive director of the Alliance for Clean Energy New York. “This will allow electricity generating projects to deliver the clean power they make and will facilitate additional renewable energy projects coming online.”
Requests were made by Central Hudson Gas & Electric Corporation, New York State Electric & Gas Corporation, National Grid (upstate), and Rochester Gas and Electric Corporation. The projects, including upgrades to existing transmission lines and substations along with the construction of three new substations, are estimated to cost $4.4 billion and create 3,500 MW of capacity for clean energy.
“For the first time, transmission planning was done through the lens of a clean energy future,” Reynolds said. “Starting in 2020, New York embarked on studying incremental transmission needs for our state to achieve the climate goals in the landmark 2019 Climate Leadership and Community Protection Act (CLCPA). That comprehensive grid study directly led to today’s approval of certain local transmission system projects. These projects will help unbottle clean power in these locations, places where congestion and curtailment of renewable energy is already occurring.”
These upgrades have been identified as being necessary to support the New York Climate Act’s renewable energy goals and are expected to be completed by 2030.
Contact:
Jeanne Hedden Gallagher, Director of Public Relations, 323.314.4057, jhgallagher@aceny.org
Anne Reynolds, Executive Director, ACE NY, 518.248.4556, areynolds@aceny.org
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