Issue Brief: Fuel Diversity is Critical in Winter

Most New Yorkers wish we could control the weather and rid ourselves of the extreme cold with biting winds. Everything seems to be impacted, including commuter rail service, which is often disrupted by low temperatures. It is a harsh reality that with the cold comes huge energy bills as demand increases and infrastructure reliability is tested. This is not a reality we have to accept and endure but one we can actually change. While no one can change the frigid temperature, mitigating the effects of extreme weather is something the state can do.

In the new issue brief Polar Vortex, New York AREA has found ways to reduce the effects of extreme cold on energy costs. One priority should be to maintain fuel diversity within the state. Ensuring a variety of different fuel sources means reducing price volatility and strengthening reliability. The subzero temperatures and frequent snow storms last winter pushed some energy systems to their limit which is why drawing fuel from an array of sources is essential for a reliable energy future.

New York has a clean in-state energy portfolio to meet its needs, but the further you go downstate, the less diverse your options are. Many power plants in New York City and Long Island have dual fuel capabilities whereby they can use natural gas and oil to make electricity. The polar vortex last year disrupted natural gas supplies and deliveries resulting in the increased use of oil as well as higher energy costs that consumers saw on their bills. It is important to note that oil prices were not as low last year as they are today; however, natural gas prices went so high that oil became the optimal fuel input both this winter and last.

The North American Electric Reliability Corporation (NERC) has reported that the northeast is not immune from future energy shortages. The international regulator issued a report detailing the effects cold winter weather had on energy infrastructure from freezing pipes to ice on the rivers that hydro power plants rely on. Freezing rain recently contributed to massive transmission failures in Quebec, leaving as many as 277,000 people in the dark. Following the loss of eight major power generators including Vermont Yankee nuclear plant in Vermont, NERC outlined serious reliability concerns in the northeast due to a lack of fuel diversity.

The Empire State has been able to keep reliability issues at bay because of Indian Point Energy Center, whose 2,000 megawatts of decarbonized power keeps New York’s electric grid charged, the air clean, and prices stable during periods of high demand. At the height of the polar vortex, the Nuclear Energy Institute found that America’s nuclear fleet maintained more than 97 percent of its operating capacity. This goes to show the vital role nuclear power plays as part of an overall cost-effective and environmentally sound energy plan.

As cold winter weather blankets the region, ratepayers – a.k.a. hardworking New Yorkers – will bear the heavy cost burden associated with a growing lack of fuel options. New York State must commit itself to ensuring a clean energy future where fuel diversity is paramount and that includes nuclear power from Indian Point.

For the entire polar vortex issue brief, please click here or visit www.area-alliance.org.

Editor’s Note: Richard Thomas is Executive Director with the New York Affordable Reliable Electricity Alliance. Founded in November 2003, New York AREA is a diverse group of more than 150 business, labor, and community groups, individuals and energy companies including Entergy (the owner of Indian Point). New York AREA’s mission and purpose is to ensure that New York has an ample and reliable electricity supply and economic prosperity for years to come by engaging policy makers, businesses, and the general public regarding the necessity and importance of safe, low-cost, reliable, clean electricity. For more, visit www.area-alliance.org.

Photo Credits: Associated Press and The Wise Group