Memo in Opposition A9149-A

A.9149-A (Englebright)

MEMORANDUM IN OPPOSITION

           This memorandum is submitted by Energy Coalition New York in opposition to the subject bill which would require the Public Service Commission to establish an incentive program for solar photovoltaic (“PV”) generating systems to achieve 2100 megawatts by 2021. This bill also requires every contractor employed to install solar photovoltaic generating systems rated at 250 KW or more to pay prevailing wages pursuant to Labor Law Article 8.

           Energy Coalition New York consists of New York State’s major gas and electric utility companies: Central Hudson Gas & Electric Corporation, Consolidated Edison Inc., National Fuel Gas Distribution Corporation, National Grid, New York State Electric & Gas Corporation and Rochester Gas and Electric Corporation. Coalition companies collectively employ more than 32,000 people, service more than 8.5 million customers and pay more than $3 billion in state and local taxes, assessments and fees. The member companies annually invest billions of dollars to make capital improvements to the electric and natural gas infrastructure located in New York State.

           This bill is unnecessary because of Governor Cuomo’s New York Sun Initiative, which doubles customer-sited solar power installed annually and quadruples that amount by 2013. NYSERDA’s funding for solar PV was just doubled to $432 million over the next four years. This represents a significant commitment to solar energy in the context of the current Renewable Portfolio Standard (“RPS”) program.

           The RPS program using NYSERDA as the administrator has placed New York State’s renewables in a leadership role in the Northeast. The competitive approach under this program has proved successful. There is no sound rationale to create a new program for solar as mandated by this bill, especially in view of the recent doubling of resources to solar PV.

           The solar PV program under this bill would be funded by the investor-owned utilities which would operate an incentive program. NYSERDA recently undertook a New York Solar study and determined the costs were significant. Although more moderate, this bill would have significant cost impact on consumers. There is no necessity to assess an additional cost burden on consumers with the commitment to double NYSERDA’s solar funding. The creation of a separate incentive program for solar sets a precedent for other renewables, which runs counter to the RPS process.

           Under Article 8 of the Labor Law, and the New York State Constitution, prevailing wage is applied to public work. Installation of solar PV on privately owned buildings does not constitute public work. Under the Public Service Law, the increased labor costs added by the payment of prevailing wages would be passed on to utility consumers.

           Based on the foregoing, it is respectfully requested that this bill not receive favorable action.