2005

FOR RELEASE: February 7, 2005
CONTACT: Tom Collins, NYSERDA (518) 862-1090 ext. 3250

STATE MOVES FORWARD ON COMMITMENT TO CLEAN, RENEWABLE ENERGY
Renewable Portfolio Standard Program Underway

The New York State Energy Research and Development Authority (NYSERDA) announced today that five power generation producers have been selected to provide power in the form of renewable energy, or "green" power in the first phase of the Renewable Portfolio Standard (RPS) Program.

The five projects chosen included two wind facilities and three small hydroelectric projects. The wind projects selected include Flat Rock in Lewis County, and Jersey-Atlantic Wind Farm, in New Jersey. The small hydroelectric projects selected include Browns Falls Hydro and Higley Hydro in St. Lawrence County, and Spier Falls Hydro in Saratoga County.

"Governor Pataki in his 2003 State of the State address made a commitment to make New York a national leader in renewable energy usage, when he asked the State Public Service Commission (RPS) to implement a Renewable Portfolio Standard," said NYSERDA President Peter R. Smith. "We have been working diligently on behalf of the Public Service Commission to administer a comprehensive program that will provide the maximum benefit for all New Yorkers, and assure that we achieve the Governor's goal."

"Increased use of renewable resources will produce greater fuel diversity for New York State, which will ultimately work to reduce energy price volatility and shield ratepayers from the impacts of price spikes for oil, natural gas, and coal," said William M. Flynn, Chairman of the Public Service Commission. "New York's RPS is a smart energy initiative that will stimulate economic development in the fast-growing area of clean energy technologies while also producing environmental benefits as we tap into cleaner energy resources."

Following the 2003 State of the State address, the PSC initiated a collaborative proceeding in which more than 150 parties participated in to identify and discuss issues surrounding this undertaking, which resulted in an order by the Public Service Commission in September of 2004 adopting an RPS. NYSERDA was selected to administer the funds to be used as incentives for renewable resource development. The program is designed to increase the amount of electricity sold to consumers in New York State that is generated from renewable resources to at least 25 percent by 2013.

Twenty-two proposals were received from this solicitation, which was the first of many that will be issued over the next several years to fully implement the RPS program. The power producers selected in this round will be providing 697,832 MWh of eligible renewable electricity production, in the first year. The amount of funding provided to the five projects selected will be $15.7 million the first year.

When fully implemented, the RPS is also expected to reduce air emissions of nitrogen oxide by 6.8 percent, sulfur dioxide by 5.9 percent, and carbon dioxide by 7.7 percent throughout the State. Along with the significant emission reductions that will improve the State's environment, the State will see a boost in economic development activity from the growth of the renewable energy industry in the State.

"We were extremely pleased with the response and the mix of renewable energy projects that were proposed in this first round solicitation," added Peter Smith. "Not only will these projects begin helping us reduce our dependence on fossil fuel, but New Yorkers will reap the environmental and economic benefits that we had envisioned."

For additional information on the Renewable Portfolio Standard go to:

www.dps.state.ny.us or www.nyserda.org/rps/about.asp 

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