NYPA Poised To Boost Efficiency Spending December 02 2019, 0 Comments

From Politico New York Energy's (2019 11 27) Marie J. French:

The New York Power Authority is moving to increase its budget for energy efficiency capital projects by $1.5 billion to avoid a financing shortfall as customers demand more, projects get more complex and state emissions goals accelerate. "In the last couple of years the pipeline has increased ... and that's predominantly due to our customers demanding more and the requirements that have been set out by the state," said Sarah Salati, NYPA's chief commercial officer and executive vice president, in an interview. As part of the state's 2025 efficiency goal to reduce energy consumption by 185 trillion British thermal units, NYPA has a goal of driving down energy usage by state entities by a total of 11 trillion BTUs, compared with 2014 levels. The Legislature and the Cuomo administration are also relying on the authority to secure additional reductions from its governmental customers downstate as part of an aggressive set of climate targets enacted this year.

... The Power Authority can use its low cost of borrowing and healthy cash flow to pay the upfront costs of energy-saving projects such as more efficient lighting, HVAC systems, boilers or more complex retrofits. Customers agree to pay NYPA back, with interest and an administrative fee, over several years or as a lump sum. NYPA has committed a total of $3.05 billion to energy efficiency projects since 1998 and spent $2.7 billion. Of the amount spent, $1.8 billion has been recovered, and $916 million is outstanding to be repaid by customers.