Tuesday, November 16, 2004

New York Accelerates Schedule to Purchase Renewable Energy

The Syracuse Post-Standard is reporting this morning that the State of New York may accelerate its plans to purchase more renewable power under the State's Renewable Portfolio Standard. The State had anticipated signing the first contracts with renewable energy producers late in 2005, but the Public Service Commission has announced that it may be ready to enter into contracts with renewable power providers as early as January. According to the Post-Standard article the PSC is accelerating plans in order to take advantage of the Federal Production Tax Credit, which is set to expire at the end of 2005. In order to capture the benefit of the 1.8 cent per KW credit, projects must be on-line by December 31, 2005. An earlier commitment on the part of the State to purchase power from renewable energy producers could enable some projects to break ground in time to qualify for the tax credit, thereby potentially saving rate-payers millions.

New York has one of the most aggressive Renewable Portfolio Standards in the United States. For more on the New York RPS see our previous posts on the topic here and here.

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