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Improve the Energy Supply

The Issue:

New York’s energy costs are some of the highest in the nation. Because energy is so critical to the manufacturing process, these high energy costs are a serious barrier to manufacturing growth. In order for New York businesses to remain competitive, they need access to lower-priced electricity and programs that increase energy efficiency. Programs such as Power For Jobs and Economic Development Power have worked in the past, but in recent years these programs have faced serious obstacles. New York’s state government should be responsible for ensuring low-cost power for manufacturers across the state.

In addition to working with state officials to alleviate New York’s energy shortage and price, MACNY will continue to help members work with the New York State Energy Research and Development Authority and other state agencies to use energy efficiently. Often there is funding available for the development of energy efficient technology that reduces the cost of energy. MACNY also offers an Electricity Aggregation that pools members’ buying power to secure better pricing on electrical power.

In Albany:

MACNY is working with other associations and a coalition of industrial and non-industrial companies that will support efforts to:

· Renew and expand the Power for Jobs and Economic Development Power Programs and create new economic development programs that lower costs for manufacturers with reduced rate electricity.

· Diversify fuel sources.

· Renew the state’s Power Plant Siting Law.

· Oppose state policies that add to the price that businesses pay for electricity or interfere with market-based competition.

Talking Points:

· The average industrial price of power in NYS in 2005 was 8.2 cents per kilowatt hour, nearly 50 percent higher than the national average and well above nearby states such as Ohio (5.1¢/kWh), Pennsylvania (6.3¢/kWh), and Virginia (4.5¢/kWh).

· Overall energy costs to manufacturers remain high, due to record-high fuel prices and other costs associated with doing business in NYS. These cost drivers have contributed to industrial energy prices averaging over 8.0 cents per kilowatt-hour, compared to a range of 2.5 cents to 5.5 cents per kilowatt-hour in states competing for the same business as New York.

· In 2003, New York’s industrial sector relied primarily on oil, followed by natural gas, and coal. Reliance on this confined portfolio of fuel sources for electricity production makes prices unpredictable, limiting a manufacturer’s capability to react to or control energy costs.

· New York’s Article X Siting Law expired in December of 2002, halting plans to construct new electricity facilities. New electricity facilities will inevitably improve New York’s energy supply.