Independent Power Producers of New York Launches Six-Figure Campaign Opposing Utility-Owned Power Generation
As Albany Policymakers Explore Proposals To Expand Utility Monopoly Control Over Power Generation, IPPNY’s Campaign Will Highlight Proposals’ Unpopularity How New Yorkers Will Face Higher Energy Costs and Reduced Reliability
ALBANY, NY – The Independent Power Producers of New York, Inc. (IPPNY) today launched a six-figure campaign opposing proposals to expand utility-owned generation in New York. IPPNY warns that such proposals are not only unpopular with New Yorkers, but would also drive up energy costs, reduce system reliability, and diminish accountability to consumers.
The campaign comes as policymakers and regulators in Albany consider utility-owned generation proposals that could significantly reshape New York’s energy landscape. With key decisions looming, IPPNY is urging decisionmakers to reject policies that would reintroduce utility monopoly control over generation and undermine competitive energy markets.
Recently, IPPNY has been building the case against returning to that failed model. Last year, the organization commissioned a policy paper that found utilities would be unable to supply new generation of power at a lower cost or on a faster timeline than private developers, and that when costs run over, it is ratepayers who foot the bill.
Earlier this year, IPPNY commissioned a statewide poll of registered New York voters that reinforced how out of step these proposals are with public sentiment.
● 8 in 10 say the state should prioritize increasing competition in the energy market to keep prices down
● More than 2/3 of New Yorkers say utility costs are out of control
● 71% of New Yorkers report their electricity bill has increased in the past year
● A majority of New Yorkers support continuing New York's competitive electricity system
● A plurality of New Yorkers identified monopoly utilities as having the greatest influence on energy costs, more than any other factor tested.
“New Yorkers are already struggling with rising electricity bills, and giving utilities even more control over our power grid is not only unpopular, it’s the wrong solution,” said Gavin Donohue, President and Chief Executive Officer of IPPNY. “New York has already been down this road before.It failed consumers more than 25 years ago, and it will fail consumers again if the state allows utility monopolies back into the generation business. As policymakers consider proposals to hand utilities monopoly control over power generation, they should be clear-eyed about the devastating consequences that it would mean for New Yorkers.
For decades, New York has utilized a competitive marketplace model in which private companies develop and operate most of the state’s electric generation, which has provided numerous benefits for all New Yorkers. Independent power producers now supply approximately 75 percent of New York’s electricity. Additionally, since New York moved away from utility-owned generation, consumers pay 35 percent less for power supply than they would under the old monopoly model. Importantly, competition has led to significant emissions reductions, thousands of high-quality jobs, and billions of dollars in annual taxes.
As New York works to modernize its grid and meet ambitious climate targets, IPPNY believes New York’s decisionmakers should focus on policies that keep energy costs down, put consumers first, support innovation, and allow the most efficient projects to move ahead.
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