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Memorandum in Support - S.5199

This memorandum is submitted by Energy Coalition New York in support of the subject bill, which would provide low interest loans to farmers to upgrade their electricity to three phase power.

Energy Coalition New York consists of New York State's major gas and electric utility companies: Central Hudson Gas & Electric Corporation, Consolidated Edison Company of New York Inc., National Fuel Gas Distribution Corporation, National Grid, New York State Electric & Gas Corporation, Orange and Rockland Utilities, Inc., 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 legislation would provide loans to dairy farmers to enable them to expand to three phase power which makes it easier and less costly to power equipment, particularly modern three phase electrical equipment. This upgraded electrical power and equipment is often necessary to enable dairy farms to increase the size of their herds. This technology allows a dairy farm to achieve expansion to the next level. This growth provides economic benefits not only to the dairy farm but also to other supporting businesses. The location of many farms makes the availability of three phase power more expensive so this loan program would provide funding to enable dairy farms to make this transition. Investor owned utilities support the use of energy efficient solutions, particularly when accompanied by positive economic consequences.

Based on the foregoing, it is respectfully requested that this bill receive favorable action.