The PSC approved the Clean Energy Standard in August 2016 requiring 50 percent of the state's electricity to come from renewable energy sources like wind and solar by 2030.
NYSERDA has noted the Clean Energy Standard will require all six New York investor-owned utilities and other energy suppliers to pay for the intrinsic value of carbon-free emissions from nuclear power plants by purchasing zero-emission credits.
Assemblywoman Jenne said the new charge will generate the resources necessary to help keep the nuclear power plants in upstate New York, including the James A. FitzPatrick plant in Central New York, operational.
The closure of the nuke plants would likely force energy suppliers in the state to purchase more power from fossil-fuel generation facilities. The loss of the power generated at the nuclear power plants would also likely cause a spike in the cost of electricity in the state due to the market forces of supply and demand.
But she suggested municipal electric systems in the state should be excluded from the new charge since they are already getting well over 50 percent of their power from renewable sources.
"Our municipal systems should not be penalized for being ahead of the curve and making a really smart decision to rely on renewable energy sources years ago," Assemblywoman Jenne told Public Service Commission Chair Audrey Zibelman during a recent joint budget hearing in Albany.
Assemblywoman Jenne represents three municipal electric systems - Massena, Philadelphia and Theresa - in the 116th Assembly District.
"The customers in those munis are not going to be able to realize the benefits of switching to more renewable energy sources because they are already doing it and have been for years," she said.
The Massena Electric Department, for example, would be adding a 6 percent on top of the state's 4 percent sales tax as a result of the zero-emissions credit fee requirement.
The department already receives 23.5 megawatts of its average 28 megawatt load in hydropower generated by the New York Power Authority. Many of the state's 34 municipal systems were on board more than five decades ago when a contract was signed with the power authority to purchase the hydropower at a rate that was higher than the market rate from other sources at the time.
"The customers in those communities long ago made the commitment and paid the price for using a renewable energy source. Those customers shouldn't be hit with a new fee when the record shows they are already well above the Clean Energy Standards that have been outlined by the governor," she said.
Assemblywoman Jenne also pointed out the additional fee would have an impact on efforts to market low-cost energy as an enticement to draw businesses into the North Country communities served by municipal systems.
Utilities and other energy suppliers will initially be required to phase in new renewable power resources starting with 26.31 percent of the state's total electricity load in 2017 and grow to 30.54 percent of the statewide total in 2021.
This will allow financially-struggling upstate nuclear power plants to remain in operation during New York’s transition to 50 percent renewables by 2030. A growing number of climate scientists have warned that if these nuclear plants were to abruptly close, carbon emissions in New York will increase by more than 31 million metric tons during the next two years, resulting in public health and other societal costs of at least $1.4 billion, according to NYSERDA.
NYSERDA, in a release issued last summer, estimated the Clean Energy Standard fee will cost the average residential customer less than $2 a month. The cost would likely be slightly higher for municipal customers in the North Country.