Energy experts call on New York regulators to modernize the state’s grid, lower energy costs through clean energy, and prepare for growing electricity demand

As New York state utility regulators prepare to release a Grid of the Future Plan later this month, energy experts and advocates are urging the Public Service Commission (PSC) to release a plan that reduces reliance on expensive fossil fuels, avoids unnecessary infrastructure spending, and makes it faster and easier for New Yorkers to access clean, affordable power.

You can view a recording of the webinar here. 

The case for a more modern, affordable grid is increasingly stronger. New York currently imports $50 billion in oil and gas each year, leaving households exposed to volatile fossil fuel prices. At the same time, extreme heat and growing demand from data centers are straining the grid, with New York City and Long Island potentially facing blackouts as early as next summer if the grid is continuously maxed out. 

“New York has the opportunity to build an energy system that works better for everyone––one that is affordable, reliable, clean, and is ready for the growing electricity demand. A strong Grid of the Future can help make this a reality,” said Kate Boicourt, New York State director at Environmental Defense Fund. “New Yorkers shouldn’t have to worry about turning on their air conditioning during episodes of extreme heat, and they definitely shouldn’t have to choose between reliable power and affordable energy. We need a grid that delivers both.”

Advocates are calling on utility regulators to adopt a strong Grid of the Future plan that prioritizes the adoption of clean energy and efficient electric technologies such as heat pumps that can stabilize energy costs. Heat pump customers in New York are currently overcharged by an average of $855 per year under the state’s current, unfair rate structure, even though electric homes use less energy. If New York utility regulators adopt heat pump-friendly rates, nearly 72% of gas-heated households would save by switching to efficient electric heating and cooling. 

“This year, New York City saw 170,000 power outages in four days during the early July heatwave, and households with energy-efficient heat pumps will pay an average of $855 more than their fair share of electricity delivery charges. A study done for the state also found that New York could tap more than 8 gigawatts of flexible resources by 2040, avoiding nearly $3 billion a year in power system costs,” said Dr. Anshul Gupta, policy & research director at New Yorkers for Clean Power. “A timely and effective Grid of the Future Plan can address all these issues and lead to a modern grid, virtual power plants, and fair heating rates with lower bills, cleaner air, and better reliability.”

“The Commission has made it clear that heat pump-friendly rates belong in the Grid of the Future Plan, and we expect DPS staff to carry that direction forward,” said Alex Lopez, regulatory policy lead at Rewiring America. “States like Maine, Minnesota, Rhode Island, Massachusetts, and Colorado are showing that fairer rate design can make electrification affordable for families while advancing clean energy goals and building a more flexible, affordable grid. New York now has the opportunity to put those lessons into practice and make heat pump-friendly rates a meaningful part of its grid of the future.”

New York’s reliance on fossil fuels to power its electric grid has increased the risk of blackouts and forced the state to rely on polluting fossil-fuel peaker plants during high demand. To stabilize the state’s energy system, advocates are urging utility regulators to move forward with plans to accelerate deployment of clean energy, the cheapest available energy source.

 “New York State needs smarter management of its existing utility grid,” said David Gahl, executive director at Solar and Storage Industries Institute. “One element of smarter grid management is improving the interconnection process with flexible interconnection. This approach maximizes the use of existing grid infrastructure, protects customers from costly grid upgrades and accelerates low-cost clean energy deployment, while maintaining grid safety and reliability. The Department of Public Services Grid of the Future Plan should include directives to more widely use flexible interconnection across the state.”

A smarter grid powered by clean energy can help New Yorkers use the energy they produce more effectively. Excess clean energy can be shared, avoiding the need to build out costly, dirty fossil fuel infrastructure. Pilot programs in upstate New York prove this: a flexible solar interconnection pilot from NYSEG and RG&E increased the amount of solar that could connect to the grid sixfold, while avoiding roughly $3 million in grid expenses. 

The press conference was sponsored by advocates and energy experts with Environmental Defense Fund, Alliance for a Green Economy, Rewiring America, New Yorkers for Clean Power, Sierra Club, Evergreen Action, Environmental Advocates, Earthjustice, Building Decarbonization Coalition, and the Solar and Storage Industries Institute.

Additional quotes from advocates can be found below: 

"The PSC has a chance to bring bills down by building smarter instead of building more," said Jessica Azulay, executive director at Alliance for a Green Economy. "Every dollar spent on gas infrastructure we don't need ends up on a customer's bill for decades. A Grid of the Future plan that puts clean energy and efficient electric technology first is the most direct path to lower, more predictable costs for New Yorkers. Regulators can make that the standard, and we're ready to help them get it right."

Nicole Abene, New York associate director at Building Decarbonization Coalition, said, “The Grid of the Future plan is a unique opportunity for New York to remove outdated barriers to electrification, reduce our exposure to volatile fossil fuel prices, and build an energy system that is cleaner, more affordable, and ready for growing demand. New York should lead the nation with a grid plan centered on the policies and technologies that lower costs for families, make the energy system more resilient, and grow our economy. Heat pumps and thermal energy networks, paired with fair electric heating rates, accomplish all three, while ensuring safe and effective systems for all." 

“A strong Grid of the Future Plan gives New York State a chance to take on the climate and affordability crises at the same time,” said Catherine Zingg, Northeast & Mid-Atlantic regional director at Evergreen Action. “A grid built on clean, cheap power means more reliable electricity and lower bills instead of leaving families exposed to volatile fossil fuel prices. That matters for the Empire State residents whose budgets are already stretched to the max by utility costs, especially after a summer of extreme heat. We urge the PSC to put New Yorkers first and deliver a strong Grid of the Future Plan.”