- The New York Power Authority (NYPA) is a state-owned electric utility. It owns some power plants and some long-range transmission lines, but it does not own any local distribution lines, meaning any electricity that NYPA generates and sells to its customers still goes through the local distribution utility’s infrastructure (like Con Ed). Furthermore, NYPA is prohibited from building or acquiring any new power plants. This means that as NYPA’s customer base expands (more on this below) its only option is to supply them with electricity purchased from private companies -- making the whole process more expensive than it needs to be and making the clean energy transition dependent on the will of private companies.
Fun fact: NYPA is the largest publicly-owned utility company in the country!
- NYPA supplies the electricity for a lot of state institutions: schools, government buildings, the MTA, etc. Being a NYPA customer often lowers the electricity bill for these institutions compared to getting their electricity supplied by their local (private) utility. NYPA is generally prohibited from selling that electricity to private institutions and individuals with only a few notable exceptions1. NYPA is hamstrung and not allowed to compete with profit-seeking companies.
- Because NYPA is a state authority, it can issue state bonds. And it has a great track record and rating for doing so. This means it can access inexpensive cash to invest in new projects; NYPA can issue bonds that allow it to finance new development and it can do so in a way that's highly competitive with any private company.
- Electricity from wind and solar is now less expensive than electricity from gas-fired power plants.
- Allow NYPA to build, own, and invest in new generation, specifically green electricity generation like wind and solar.
- Allow NYPA to supply electricity to non-state consumers.
- Because NYPA has great access to inexpensive financing, it should be able to outcompete private companies for building new infrastructure.
- If NYPA is allowed to sell its green electricity to consumers directly, it should be able to beat dirty suppliers even on an open market because green energy costs less than gas-derived electricity.
NYPA was founded by FDR in 1931, during the original New Deal. It has a track record of delivering low-cost, reliable power, including to public housing residents, the MTA, NYCHA, and CUNY/SUNY, as well as a number of municipalities upstate. Both the NY Environmental Justice Alliance and UPROSE have very good relationships with Gil Quiñones, NYPA head, who is also genuinely committed to environmental justice principles. There are also examples of how NYPA has directed its profits back into the communities it operates in (like the Northern New York Power Proceeds Act in 2014).
NYPA is imperfect, however. It owns the Astoria Generating Station and six peaker plants in NYC, which are exempt from emissions standards and thus very dirty. It has also attempted to site a gas microgrid in a Black neighborhood in Albany.
1There are a few exceptions where private companies can get power from NYPA. See the Recharge NY program... Private companies can get NYPA power at a discounted rate in exchange for promising to keep X number of jobs and $X amount of capital investment spending in NY.