New Yorkers, Beware Of Your Electric Bill$

New Yorkers, Beware Of Your Electric Bill$

November 15, 2019

New York State is looking to make a big investment in offshore wind projects.  It’s been reported that the investments will be in the billions for these projects.  But what is not commonly reported is how exactly the state will come up with these billions of dollars. 

Yesterday reported that upstate New Yorkers will be the ones carrying the brunt of the bill.  More than half of the investment money will come from upstate New Yorkers’ electric bills.

To make offshore wind energy costs competitive with fossil fuels NYSERDA has worked out contracts with the developers. The contracts require every utility company in New York to purchase ORECs. 

The utility companies pass those costs along to ratepayers across the state. Fifty-three percent of the subsidies will be collected from ratepayers outside Long Island and New York City. The money then goes back to NYSERDA to offset the offshore energy development costs.

It doesn’t stop there though.  There are also some less obvious costs to be picked up by New Yorkers:

Taxpayers are also likely to cover increased operating costs for school districts and local governments. Hospitals and manufacturers will also likely need to make up the increased electrical costs from consumers.

Once you are being charged for the ORECs, you won’t notice a line item on your utility bill. Instead, you’ll have to go to NYSERDA’s website to look up the estimated direct cost to you because the PSC chose to have OREC cost lumped in with the utility and delivery charges.

New Yorkers, be smart and keep an eye on the small print…