When it comes to straining New York State’s outdated energy grid and the threat of less reliability and higher prices, don’t blame the high energy consumers. Blame the state’s policies.
That’s what two Niagara County state lawmakers are suggesting as they discussed energy costs and reliability while visiting a local manufacturer.
Confer Plastics employs 150 people at its North Tonawanda facility, where they make a wide assortment of products, from table and stool sets, to sleds and kayaks. President Bob Confer says they’re currently expanding.
“We're adding 30,000 square feet because I believe in the abilities of my people to make and sell products that consumers want,” he said. “But at the same time, I worry that that building could be an empty shell 15 years from now, because of those higher costs.”
What worries Confer is the state’s energy grid. Critics say it’s outdated, in need of repair and expansion, but is only getting tested more as demand increases.
It worries his guests who appeared Wednesday, July 15. State Senator Robert Ortt, the Senate’s minority caucus leader, was one of them.
“You're hearing a lot of criticism of high energy employers, people who are going to come into New York and use a lot of power, and that's going to put a lot of strain on the grid, and that's going to cause your bills to go up. I think that's a false narrative and a false choice,” Ortt said. “That is a narrative that has been foisted upon New Yorkers because of bad energy policy. Not just yesterday, but for a long time, we have an antiquated grid that is struggling to maintain and provide the base load of power today.”
Tuesday, Governor Kathy Hochul signed an executive order halting new larger data centers for up to a year to further explore their impacts and allow the state to develop stronger regulations which would protect both the environment and consumers.
The Legislature had passed its own version of a moratorium on large data centers in late June, shortly before the end of its session. Ortt and Assemblymember Angelo Morinello were among lawmakers who voted against the moratorium. They argue the state’s policy, by weaning New York from fuel sources including natural gas in favor of solar, hydro, and wind, is instead putting even more strain on the electric power grid, which in turn will create problems that compromise service and raise rates.
“By moving everyone to all electric, you're seeing early signs of what that looks like. We need to keep our AC at around 80 degrees because the strain on the grid is too much. Worse you know, and of course, what that means is you're going to have brownouts. You're going to have reliability issues,” Ortt said. “A company like Confer Plastics, they need reliable power. Yes, affordable power, but reliable power probably just as much.”
Governor Hochul, earlier this year, favored rolling back on emission reduction targets set in New York State’s 2019 Climate Leadership and Community Protection Act. Among the state’s policies set forth included phasing out natural gas use in homes, in favor of all-electric power.
Critics say that’s not practical. Morinello, speaking at Confer Plastics, said limiting energy sources won’t allow New York to thrive, and it’s proven in major projects including the new Highmark Stadium.
“Guess what the fuel is going to be to heat that, and to heat the field under the grass to keep that ground warm. Natural gas,” he said. “The second largest, or this may even be the largest project that New York has pursued is Micron. Well, guess what's going in there? Natural gas.”
Other concerns expressed by business owners, according to Ortt and Morinello, are the decommissioning of previously reliable power plants. The lawmakers, meanwhile, are dissatisfied with the amount of power provided to Niagara County institutions by the Niagara Power Project.
Morinello is equally dissatisfied by the lack of Niagara County representation among the New York Power Authority’s leadership.
“The power plant here produces approximately 70% of the net profits of NYPA. We don't even have a trustee out of Niagara County, nor does it provide for one. Yet, 70% of the profit comes from here,” he said. “We've lost taxable land, and it's like falling on deaf ears because it's controlled out of New York City.”
Confer, meanwhile, raised the question of why he doesn’t just relocate his company to another state. He recalls the power grid in Texas failing back in 2021 and its impact on businesses and residents. He also doesn’t want to displace his 150 employees, and wants to have the same faith in the state’s energy that he has in his workers.
“We should be producing our own power through different means. Whether it's bringing back to life some of the gas-fired generators, and more in the long term, bring on something clean and green like nuclear energy with the small reactors, just as our friends in the province of Ontario are doing,” he said.
