NY State’s Climate Law

Jun 21

There are many details to work through.. but nevertheless NY State passed climate legislation that will, according to Bloomberg

set the most aggressive clean energy target in the country, more than triple the state’s solar capacity and unleash wind power off the coast.

Take a look at the Bloomberg article (Climate Changed–New York Passes Its Own Green New Deal With Aggressive Targets) describing the legislation here.

The next three years of electricity pricing reflects the uncertainty inherent in sweeping legislation that is short on details. We expect market prices for power to decouple from natural gas forward prices. That is, in fact, what we are experiencing in power and gas markets (see below). We also would expect greater volatility in power markets in the future.

Power and gas market pricing have de-coupled.

Power markets show greater volatility and higher pricing as 2021/2022 approach.

Natural gas prices are relatively less volatile than power, particularly in the out years.

We are assessing the impact to customers and will continue to do so as the details emerge. Stay tuned….

Bottom line for customers: While the law sets targets, details are scarce. Stay tuned as we assess how this legislation is expected to impact customers. 

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