WHITE PLAINS – December 23, 2015 – (RealEstateRama) — The New York Power Authority Board of Trustees has approved a budget for the 2016 fiscal year that enables the nation’s largest state-owned utility to bolster its profile in renewable energy and upgrade its electricity infrastructure while working through the challenges presented by lower energy prices.
Under the budget, which is 0.4 percent higher than the 2015 spending plan, NYPA will also accelerate the repayment of up to $123 million in debt to take advantage of lower interest rates.
“NYPA’s budget again strikes the right balance in managing rates and costs to ensure high- quality power is affordable for our customers while making wise investments for the future benefit of our multiple constituencies across the State of New York,” said John R. Koelmel, NYPA chairman. “This plan effectively leverages NYPA’s strong foundation of reliable assets that support the traditional transmission and distribution system and also expand the range of innovative services that help our customers take advantage of the new energy choices available in today’s marketplace.”
NYPA will continue its capital investments in energy services programs for state and local governments and schools, as well as for its support of energy policy initiatives spearheaded by Gov. Andrew M. Cuomo. They include BuildSmart NY, a program administered by NYPA that mandates a 20 percent reduction in energy use in all state-owned and managed buildings by 2020, and K-Solar, which is expected to aid hundreds of school districts in adding solar power to their energy mix.
These and other programs in the energy services portfolio further the goals of the Governor’s Reforming the Energy Vision plan, which aims to build a cleaner, more resilient and affordable energy system that advances the use of clean energy and supports the State’s target for 50 percent of electricity consumed to come from renewable sources by 2030.
The NYPA energy services group has also worked to aggressively increase the number of electric vehicle charging stations, including the State’s first high-speed chargers soon to go online at four New York State Thruway travel plazas in the Hudson Valley.
“These are the kinds of investments that will help define New York’s energy future and allow NYPA to retain its leadership role in the utility industry,” said Gil C. Quiniones, NYPA president and CEO. “We are developing an electric system that is at once more intelligent and flexible.”
The Power Authority will be able to accomplish this, Quiniones said, despite ongoing turbulence in the energy markets. Electricity prices closely track natural gas prices, which currently sit at a 14-year low. The plunge in energy costs this year lowered NYPA’s net income, but essential programs continue to be funded through cash from operations and existing cash reserves.
While spending will tighten in 2016, it will not affect major projects currently in the pipeline. They include:
- About $42 million for NYPA’s $726 million Transmission Life Extension and Modernization program, which will maintain and enhance the reliability of NYPA’s 1,400 circuit-miles of transmission lines.
- Funding to increase smart generation assets, including $25.2 million for the Marcy South Series Compensation project, which will use capacitor banks to move more power from upstate generators to downstate loads without building new power lines
- Another $38.6 million toward the $460 million modernization of the Lewiston Pump Generating Plant at the Niagara Power Project in Lewiston
- A $2.8 million repair to an ice sluice gate at the St. Lawrence-FDR Power Project in Massena
All told, NYPA is expected to spend $744 million on operations, maintenance and capital expenses.
NYPA will also reduce its debt service through the early retirement of $123 million of variable rate debt. A consistent string of positive reports from Moody’s Investor Services, Standard & Poor’s and Fitch Ratings that have praised NYPA’s fiscal practices and performance have enabled the Power Authority to keep its borrowing costs low.
The trustees also approved a four-year financial plan for 2016-2019, which includes preliminary forecasts of revenues and expenditures.
About NYPA:
NYPA is the nation’s largest state public power organization, through the operation of its 16 generating facilities and more than 1,400 circuit-miles of transmission lines. NYPA uses no tax money or state credit. It finances its operations through the sale of bonds and revenues earned in large part through sales of electricity. More than 70 percent of the electricity NYPA produces is clean renewable hydropower. For more information visit http://www.nypa.gov/and follow us on Twitter @NYPAenergy, Facebook,Instagram, WordPress, and LinkedIn.
Contact:
Steven Gosset | Steven.Gosset (at) nypa (dot) gov | (914) 390-8192
