The Manufacturers Association of the Southern Tier (MAST) and the Buffalo Niagara Manufacturing Alliance (BNMA) are coming out in opposition to a proposed rate increase by the New York Power Authority (NYPA) that would nearly triple the rates charged to hydropower customers.
They said the proposed rate increase, which raises rates from $12.88 per megawatt-hour to $33.05 per megawatt-hour over four years, poses a significant threat to the competitiveness of manufacturers in the region.
MAST Executive Director Todd Tranum stated, “This drastic rate increase will severely impact manufacturers who rely on affordable and reliable energy to sustain their operations. Rising energy costs hinder our ability to invest in innovation, expand production, and create jobs. This proposed rate increase stands in direct opposition to efforts to grow the economy.”
He said the increase also changes the long-standing rate-setting methodology that has been in place for decades. Preference power customers, including municipal electric systems and rural electric cooperatives, have had access to cost-based electricity under federal and state law. Tranum said the proposal disrupts the stability these entities have relied upon to supply clean, renewable energy to their communities.
MAST and the Buffalo Niagara Manufacturing Alliance stated that preference power customers have long supplied their local communities with affordable, renewable energy from NYPA. Under the Niagara Redevelopment Act, they said these customers are entitled to the “lowest rates reasonably possible.” The proposed rate increase and change in methodology deviate from this legal requirement, undermining decades of policy designed to support economic growth through cost-effective energy.
The BNMA and MAST also expressed concern regarding the impact the rate increase will have on those businesses that have power agreements with NYPA as part of the ReCharge New York program. A little over 60 companies in Western New York have agreements with NYPA through this program. ReCharge NY is an economic development initiative of New York State that enables companies to receive power through NYPA for keeping or growing employment, expanding operations and/or making significant local investments in their businesses.
MAST and BNMA are urging NYPA to reconsider this proposal and to work collaboratively with stakeholders to ensure the continued affordability of hydropower for the benefit of New York’s economy and its communities.
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