The price of electric power in New York City could double over the next three years as the result of a recent ruling by the Federal Energy Regulatory Commission (FERC). Power prices in New York City are already nearly two-thirds higher than the average price paid by consumers in other U.S. cities during any given month of the year, according to the Bureau of Labor Statistics.
Needless to say, the prospect of paying nearly twice as much for electricity has provoked strong words from New York’s political elite, setting the stage for a bare-knuckled political brawl between politicos in the Big Apple and bureaucrats in Washington D.C.
The gravamen of the dispute stems from federal “reliability standards” stipulating that New York City must be able to provide at least 80% of the electricity it uses during hours of peak demand from local power plants.See also yesterday's "Coming Soon to A Country Near You: Blackout".
To avoid the potentially catastrophic consequences of running out of electric generating capacity, regulators have created a market for generating capacity to ensure that sufficient generating capacity will be available to meet high peak loads....MORE