ALBANY – The New York Association of Public Power (NYAPP) is raising the alarm over a proposed rate hike by the New York Power Authority (NYPA) that would nearly triple costs for renewable hydropower sourced from the Niagara Power Project. The Notice of Proposed Rulemaking, issued by NYPA, includes a rate increase from $12.88 to $33.05 per megawatt hour within four years, along with a shift in the decades-long rate-setting methodology.
NYAPP warns the increased costs will be passed on to customers, many of whom are already grappling with rising inflation and energy costs. The proposed hike clashes with the state’s stated commitment to affordability during New York’s clean energy transition, as highlighted by Governor Hochul earlier this year.
The proposed rate hike coincides with NYPA’s approval of a $300 million headquarters in White Plains, drawing additional criticism from local officials.
Call to Action
NYAPP members, representing 12 non-profit utilities across the state, plan to actively participate in the public comment period and demand transparency and fairness in rate-setting. They argue that hydropower, under the Niagara Redevelopment Act, must be sold at the “lowest rates reasonably possible” and urge a full review of NYPA’s rationale for the increase.
