New York Approves Wind Power Expansion

Well, that's what may end up happening. The State's Public Service Commission approved a corporate takeover, which was considered critical to the company's plans to build several large wind farms across upstate New York.

Iberdrola said earlier this summer that it would invest at least $2 billion in wind turbines across upstate New York if the commission allowed it to acquire Energy East, subsidiaries of which supply electricity or natural gas to 1.7 million customers in the state.

The commission’s decision was the final hurdle for the $4.6 billion deal, which had been approved by federal and other state regulators, but spent a year under scrutiny by the commission’s staff, which recommended that it be blocked.

In approving the acquisition, the commission substantially lightened the conditions of sale that had been recommended by its staff, which had been criticized as onerous by Iberdrola and elected officials of both parties. The commission likewise moderated the recommendations made in June by an administrative law judge, who largely endorsed the staff proposal.

For example, the commission said that Iberdrola would need to provide only $275 million worth of rebates to Energy East’s current New York customers, far less than the $646 million the commission’s analysts had earlier proposed.

It's good to see that the PSC could move forward on creating the conditions for wind power in New York. Now, if New Jersey could follow in New York's steps and get on board with its own stalled wind power projects that are held up by red tape and Gov. Corzine's indifference despite his professed green streak.

Whether these New York wind power sites get developed is a question that will come down to whether the localities will allow their development or engage in obstructionism, NIMBYism, and whether individuals and towns stand in the way of these projects. All those factors will increase costs, that will eventually be borne by rate-payers.