Analysis Group Senior Advisor Susan Tierney's Expert Opinion Considered by the New York Public Service Commission
April 29, 2016
Analysis Group Senior Advisor Susan Tierney is quoted at length in a SNL Financial article regarding her recent testimony before the New York Public Service Commission.
The Commission is currently considering a proposal from Governor Andrew Cuomo to implement a clean energy standard as the policy designed to support achievement of the ambitious energy goals laid out by his administration. Those goals mandate that the state reduce greenhouse gas emissions from power plants by 40 percent while generating 50 percent of its electricity from renewable energy sources by 2030.
Entergy Corp., in response to the governor's plan, has advocated for a single, market-based “clean energy credit” to compensate energy generators, regardless of the technology used, for avoided emissions per megawatt-hour.
Dr. Tierney, in testimony as an expert witness on behalf of Entergy Corp., suggested that if the purpose of New York's clean energy standard is to cut CO2 emissions by 40 percent by 2030, then it should “focus like a laser on that outcome” by proportionally compensating energy resources for the clean energy attribute associated with their power production.
“Designing a technology-neutral [Clean Energy Standard] program that compensates suppliers for the zero- or low-emission electricity they produce mitigates the existing failure in electricity markets to internalize the costs associated with CO2 emissions and climate change,” Dr. Tierney said.
According to Dr. Tierney's analysis, implementing a technology-neutral clean energy credit would help New York meet its emissions cuts by 2030 more cost-effectively than the governor's current proposal would, and would do so in a way that dovetails with both the structure of the state's wholesale power market and the state's “REV” goals.