NYPA Press Release

Paul DeMichele | paul.demichele@nypa.gov | (914) 390-8186

NYPA Sells More Than $608 Million in Green Bonds to

Finance Investments in Statewide Transmission Assets

WHITE PLAINS—The New York Power Authority, marking Earth Week, has sold more than $608 million in green bonds to finance capital expenditures related to the Power Authority’s development of electricity transmission in New York State. The bond sale supports the Power Authority’s VISION2030 strategy to expand the transmission of clean energy throughout New York and the creation of the future digital grid while meeting the objectives of the state’s Climate Leadership and Community Protection Act (Climate Act), the most aggressive climate change law in the nation, and Governor Hochul’s State of the State initiative to issue green bonds to benefit the transformation of the state’s electric grid.

“The capital generated from this green transmission revenue bonds sale is a significant investment in the foundation of a clean energy economy in New York State,” NYPA Interim President and CEO Justin Driscoll said. “NYPA is working to achieve Governor Kathy Hochul’s bold clean energy vision for the state, addressing the administration’s 2022 State of the State green bonds commitment and accelerating New York’s goal to ensure that 70% of the state’s electricity comes from renewable energy by 2030, and 100% by 2040.”

The green bonds, which are specifically earmarked for the development of transmission assets, will accelerate the Power Authority’s progress toward the state’s clean energy and climate goals, including the mandate to obtain 70% of the state’s electricity from renewable sources, as identified in the Climate Act. The bond sale marks the first time in Power Authority history that it has issued a 100% green bond to only support revenues derived from specific projects and not NYPA itself. Sustainalytics, a company that rates the sustainability of companies based on their environmental, social and corporate governance performance, has also provided a second party opinion on the Green Bond designation.

The increase in capital will directly support the development of two ongoing large transmission projects that are estimated to reduce millions of tons of carbon emissions and create clean energy new jobs and economic development in upstate New York:

• Smart Path, a $484 million project to improve 78 circuit-miles of transmission from Massena in St. Lawrence County to the Town of Croghan in Lewis County enabling transmission from clean energy projects in the North Country into the grid and to load centers.

• Central East Energy Connect, a $210 million project that includes the construction of more than 90 circuit-miles of new 345 kV and 115 kV transmission lines and two new substations between Marcy in the Mohawk Valley and New Scotland in the Capital Region.

NYPA, which owns approximately one-third percent of the high voltage transmission lines in the state, critically evaluates where transmission power needs are greatest and where the power grid needs to be most strengthened. The Power Authority, either in stand-alone investments or through private-public collaborations, moves to modernize and unify New York’s energy grid to help accelerate the transition to clean energy generation resources through a more resilient and reliable electrical grid.

“This is the first of many reinvestments needed to rebuild and modernize the state’s transmission grid,” said NYPA Chief Financial Officer Adam Barsky. “The bonds will finance two projects, the Central East Energy Connect Transmission Project and the Smart Path Reliability Transmission Project, which will help move power from the St. Lawrence River and Central New York more cost-effectively through the grid to high-demand areas downstate in New York City and Long Island while creating economic development and jobs upstate.”

The bond sale included approximately $600 million of tax-exempt Series 2022A Bonds and was completed on April 14. The interest rate that NYPA priced is 3.62 percent, which is the lowest rate of any bond ever issued by NYPA. As a result of the Power Authority’s retail marketing efforts, 50 percent—more than $300 million—of the bonds was sold to retail investors. The rating on the bonds was affirmed in March with an A1 from Moody’s, AA from S&P and AA- from Fitch.

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New York State's Nation-Leading Climate Plan

New York State's nation-leading climate agenda is the most aggressive climate and clean energy initiative in the nation, calling for an orderly and just transition to clean energy that creates jobs and continues fostering a green economy as New York State recovers from the COVID-19 pandemic. Enshrined into law through the Climate Leadership and Community Protection Act, New York is on a path to achieve its mandated goal of a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and to reach economy wide carbon neutrality. It builds on New York's unprecedented investments to ramp-up clean energy including over $33 billion in 102 large-scale renewable and transmission projects across the state, $6.8 billion to reduce buildings emissions, $1.8 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $1.6 billion in NY Green Bank commitments. Combined, these investments are supporting nearly 158,000 jobs in New York's clean energy sector in 2020, a 2,100 percent growth in the distributed solar sector since 2011 and a commitment to develop 9,000 megawatts of offshore wind by 2035. Under the Climate Act, New York will build on this progress and reduce greenhouse gas emissions by 85 percent from 1990 levels by 2050, while ensuring that at least 35 percent with a goal of 40 percent of the benefits of clean energy investments are directed to disadvantaged communities, and advance progress towards the state's 2025 energy efficiency target of reducing on-site energy consumption by 185 trillion BTUs of end-use energy savings.

About NYPA

NYPA is the largest state public power organization in the nation, operating 16 generating facilities and more than 1,400 circuit-miles of transmission lines. More than 80 percent of the electricity NYPA produces is clean renewable hydropower. NYPA uses no tax money or state credit. It finances its operations through the sale of bonds and revenues earned in large part through sales of electricity. For more information visit www.nypa.gov and follow us on Twitter @NYPAenergy, Facebook, Instagram, Tumblr and LinkedIn.