Write a commentIn a letter to Justin Driscoll, president and CEO of the New York Power Authority (NYPA), members of the Assembly Republican Conference called for the immediate disclosure of any subsidies from the ReCharge New York program providing discounted electricity for data centers in the state.
As public discussion and interest in data centers grows, it is critical that New York state promotes transparency and divulges all information available to provide the Legislature and ratepayers with an accurate accounting and assessment of associated programs.
"The state has a duty to reflect and analyze its economic development programs to recognize what's working, what isn't and ultimately to measure the return on the investment of taxpayer dollars. We cannot draw those conclusions without full disclosure from these programs. With the discussion about data centers reaching a fever pitch both locally and nationwide, New Yorkers should know what benefits are being provided to these facilities through state-administered programs," said Assembly Minority Leader Ed Ra (R-Franklin Square).
The Assembly Republican Conference acknowledges the importance of targeted and coordinated economic development programs to help create jobs and boost local economies. However, large data centers are significantly unique for their strain on the energy grid and demand a closer examination of measurable benchmarks to gauge success.
In the letter, Assembly Republicans noted the energy concerns, "The debate about data centers and their impacts on communities should be part of any conversation on energy policy. However, what can't be debated is that the amount of electricity being used by data centers is a growing concern for ratepayers and grid reliability. NYPA's commitment to transparency should reflect the same level of concern."
"While the argument about data center development intensifies, New York must establish guidelines and procedures for utilities and high-demand customers to negotiate service agreements. Most importantly, these agreements should be structured to protect local communities and the average New York ratepayer. We can navigate the evolving data center landscape without putting an unfair burden on your energy bills," said Assemblyman Scott Gray (R-Watertown), ranking member of the Assembly Energy Committee.
According to information from the U.S. Energy Information Administration, New York is one of the most expensive states for residential electricity costs—60% above the national average. Members of the Assembly Republican Conference have regularly opposed the state's misguided mandate-driven energy policies that have contributed to growing reliability and affordability concerns from New Yorkers.
ReCharge NY is an economic development program administered by the New York Power Authority (NYPA) that provides qualifying businesses and nonprofit organizations across the state with access to specially allocated, lower-cost power. The program is designed to help reduce energy costs while encouraging businesses to remain, grow and invest in New York. In exchange for receiving these power allocations, participating companies and organizations make commitments that can include retaining or creating jobs, expanding operations and making significant investments in their New York facilities.
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copy of the letter is available here.
