Inflation Adjustments for Renewable Projects

By Peter Aronson

This is, literally, an immediate call to action for all of our members. Essential renewable energy projects are in danger of falling behind. We can’t let this happen.

Clearly, the increasingly urgent climate crisis demands that we move off of fossil fuels and replace them with clean energy sources, like offshore wind and solar power, as soon as possible. There is no issue that is more important.

While New York has made significant strides in advancing clean energy initiatives, there is a critical issue before us, an issue that threatens to slow our progress: increasing costs due to inflation and supply chain issues that could result in dozens of renewable energy projects being canceled.

The New York State Public Service Commission (PSC) is currently considering a proposal to implement inflation adjustments for renewable energy projects, which would provide the necessary financial stability to ensure these projects move forward. This adjustment must protect ratepayers from excessive costs while ensuring clean energy projects can move forward without delay to improve public health and protect the environment.

Unfortunately, without these necessary adjustments, delay is likely. If offshore wind projects are delayed, New York State will not be able to meet its goal of a 70 percent renewable grid by 2030. If these wind projects are delayed in New York, it could also have a devastating ripple effect by, among other things, jeopardizing the launch of an entirely new industry in the U.S., and hamper the transition to family-supporting, green union jobs for thousands of workers.  

If certain renewable energy projects fail and must be rebid and re-awarded because of inflation cost issues, delays could last 2.5 years to three years and result in higher costs for ratepayers. This would come at a time when electricity demands will be increasing because of the increase in electric vehicles and electric heating across the state.

It’s essential that the PSC implement inflation adjustments for renewable energy projects so that these projects can move forward expeditiously.  

Your voice can make a difference. By emailing Governor Hochul and submitting comments to the New York State Public Service Commission, you can help us demonstrate that there is overwhelming public support for keeping renewable energy projects on track. If these projects are allowed to fail, we will fall years behind in meeting our climate targets and ratepayers will face ever higher bills and continued reliance on polluting power plants.

Here’s how you can take action:

  1. Email Governor Hochul (contact link) – Express your support for inflation adjustments for renewable energy projects and urge the Governor to prioritize this initiative.
  2. Submit Comments to the PSC – Visit their website to submit your comments on this proposal. 

We have provided draft language to help you get started in writing to the governor and the PSC, but we also encourage you to share your personal experiences and thoughts on why renewable energy is crucial for New York.

Your engagement can make all the difference in securing a greener and more sustainable future for our state. Together, we can propel New York towards a cleaner energy future and combat climate change head-on. Thank you for speaking up.