NYPA Press Release

NYPA Trustees Approve 2020 Operating Budget

Contact:
Steven Gosset |
Steven.Gosset@nypa.gov | (914) 390-8192


Increased Focus on Customers’ Energy-Efficiency Needs as NYPA Helps Fulfill Governor’s Green New Deal

Spending Plan Moves Power Authority Closer to Becoming Nation’s First End-to-End Digital Utility

WHITE PLAINS—The New York Power Authority Board of Trustees today approved a budget for the 2020 fiscal year that bolsters aggressive investments in energy efficiency projects for customers while moving NYPA closer toward becoming an all-digital public utility.

The spending plan, which takes effect Jan. 1, positions NYPA to help fulfill the goals of Governor Andrew M. Cuomo’s Green New Deal, a nation-leading clean energy and jobs agenda, which mandates that New York’s electricity supply be carbon neutral by 2040.

The board also approved a four-year financial plan that affirms NYPA’s commitment to funding innovative capital programs while holding the line on operating costs to limit increases on electricity charges for customers, which include municipalities, government agencies, state universities and mass transit agencies.

“More than ever, our customers are looking for energy solutions that are efficient, save money and reduce greenhouse gas emissions,” said John R. Koelmel, NYPA chairman. “This budget lays the foundation for a utility that puts the customer at the center of everything we do.”

Toward that end, the board today also approved a seven-year, $1.5 billion plan to increase funding for energy efficiency projects, in response to demand by customers and to help meet state clean energy goals. That funding is part of a $257.2 million allocation for energy services in 2020. Since 1998, NYPA has committed $2.7 billion to financing energy efficiency projects, including equipment replacement, construction management and tax-exempt financing.

Such measures have also put NYPA on track to become the nation’s first end-to-end digital utility.

“We continue to invest in modernizing our assets to not only meet the needs of our customers, but to ensure New York’s power grid is resilient and reliable,” said Gil C. Quiniones, NYPA president and CEO. “By digitizing our assets we will have a greater awareness of how they operate in real time and can diagnose and fix potential problems before they can affect electricity production.”

The 2020 budget also calls for $519.0 million for operations and maintenance for NYPA’s 16 generating facilities and 1,400 circuit-miles of transmission lines, and $537.3 million in capital spending. NYPA continues to exercise financial discipline in the areas of generation, transmission and personnel costs to enable equitable customer energy rates. The 2020 operations and maintenance budget is a 2.3% increase compared to 2019.

Under the four-year capital plan, NYPA plans to spend $1.2 billion on key projects, including:

  • Replacement of the World War II-era Moses-Adirondack transmission line in the North Country. The $484 million project is scheduled for completion in 2023.
  • The upgrade of the AC Transmission line in conjunction with LS Power Grid New York. Running from Marcy to New Scotland, the line will relieve bottlenecks in high-voltage transmission and increase access to renewable energy sources.
  • Ramping up NYPA’s digital communications infrastructure, including the installation of fiber optic cables and dedicated communications systems to improve analytics and operations decisions.
  • Deployment of more than 100,000 sensors throughout the NYPA network to obtain real-time information about power and transmission asset performance.
  • Continuation of the life extension and modernization of NYPA transmission assets, part of a multi-year effort costing $726 million.
  • The EVolve NY program to increase adoption of electric vehicles. The funding will help complete the program’s first phase, the deployment of a network of fast chargers to help eliminate range anxiety, where EV drivers are concerned about how far they can go on a charge.

Also approved was a $91.0 million operations and maintenance budget for the New York State Canal Corporation, which became a subsidiary of NYPA in 2017. The 524-mile state Canal System, which includes the Erie, Champlain, Oswego and Cayuga-Seneca canals, will begin its 102nd year of service in May 2020. Tolls will again be waived to encourage more recreational boating.

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 on Twitter @NYPAenergy, FacebookInstagramTumblr and LinkedIn.