New York Goes Full Central Planning For The Electricity Sector
April 19, 2023/ Francis Menton
Here in New York State, we have an electricity system that, as of this moment, is functioning just fine. Granted, we pay more for the electricity than we should — probably in the range of 50% or more extra — mainly because we have banned the exploitation of our own abundant natural gas resources from the Marcellus and Utica shale formations in the upstate areas. And granted also that we just in 2020 and 2021 closed the two big nuclear reactors at Indian Point, about 40 miles north of New York City, which had supplied more than 25% of the City’s power. (We immediately replaced those nuclear plants with two brand new natural gas power plants of almost equivalent capacity, and with those additions the current system continues to work with a high degree of reliability. Building those new gas plants was our last rational act before peak environmental insanity kicked in.)
It is not news that our existing, functional electricity system grievously offends the sensibilities of environmental activists, particularly due to its high reliance on natural gas to generate the power. By our Climate Change and Community Protection Act of 2019 (Climate Act), the legislature has decreed that we are to have a rapid transition to “net zero” carbon emissions, first in the electricity sector, and then for the entire economy. No feasibility study or demonstration project for us! The only option is Full Speed Ahead, without a clue as to whether this will work or not.
The free markets have figured out that natural gas is the current low-cost way to make incremental electricity; thus, the energy transition does not budge without government command and massive subsidies. That will not stop us. Forget what the markets are clearly telling us. It’s time for the markets to take their orders from the politicians and the bureaucrats. We will go Full Central Planning. Has that ever proved to be a problem anywhere in the past? Not that anyone here seems to recognize.
https://www.manhattancontrarian.com/blog/2023-4-18-new-york-goes-full-central-planning-for-the-electricity-sector
