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Alternatives to the Indian Point Energy Center for Meeting New York Electric Power Needs
communities from the loss of Indian Point tax revenues and the labor-commercial base. The committee found that it is difficult to make specific cost estimates for these items. Ultimately, the price that consumers pay for electricity in southeastern New York will reflect some of these costs. However, given the current market structure for the sale of electric power in New York, under which wholesale prices are set on a subregional zonal basis that reflects competitive bidding behavior, the committee could not satisfactorily determine the increase in the cost of electricity to consumers that might result from the closure of Indian Point. Some costs could be offset by demand-management practices, but new generation, and perhaps new transmission, will likely increase wholesale electric costs, especially in the New York City metropolitan area, depending on competitive bidding in the open wholesale market.
Finding 8: An Integrated Approach Is Needed
The committee emphasizes that its findings must be considered as an integrated whole. Replacements for the energy, baseload capacity, and ancillary services currently provided by the Indian Point units will not happen just because they should. The construction and operation of new electric generating facilities, natural gas pipelines, liquefied natural gas facilities, or electric transmission lines will each inevitably encounter hurdles that will have to be overcome if that project is to become a reality. Each facility needs a site, financing, permits, delivery contracts, and infrastructure agreements, and has facility-specific requirements. This is also true for any demand-side programs, which have their own timing, financial, marketing, and implementation challenges to be worked out in order to achieve sufficient participation by the general public.