Maloney asks about Empire Wind price increase; Perry on SBMT economic importance
Maloney asks about the Empire Wind power price increase from $118 to $155 per megawatt hour and who bears the cost. Jung says the cost is shared across all New Yorkers at $1-2 per month on electricity rates, with NYSERDA's evaluation criteria being 70% price, 20% local content, 10% feasibility. Perry adds that SBMT is the largest infrastructure investment in 50 years and the city remains bullish on wind long-term.
One other question.
In June 2024, the state locked in the price for Empire Wind 1's power at $155 per megawatt hour, up from $118 that was proposed in the original award.
Who bears the cost of that?
How much of the city's investment was premised on the other two sites preceding?
The power purchase agreement between NYSERDA and Equinor is for their one project, Empire Wind 1.
That will cause, that cost burden is shared across all New Yorkers, and it will increase their monthly electricity rates about a dollar to two dollars.
And so that was a prime consideration for NYSERDA in their OREC solicitation.
Their evaluation criteria was 70% price, 20% what we call local content, meaning the economic impact for talent and workers and businesses across the state, and then 10% on feasibility.
So we've worked hand in glove to ensure that the state knows that affordability, particularly energy burden, is addressed through any OREC solicitations, and so we're happy that they have minimized the costs.
Through the competitive procurement.
And I think, Chair Maloney, because you just circled back a little bit to the economic importance of the site and the city's return on investment with respect to the site.
irrespective of where we are right now, this was the largest infrastructure investment in the city in really like 50 years.
And so while there are current federal headwinds with respect to offshore wind, our current president, for his own reasons, doesn't seem to like a source of power that we think is a great way to fuel like transition.
This infrastructure is going to be in place for the next like 50 plus years.
And so we look forward to a future in which like wind will be a significant part of the city's infrastructure.
And it may not happen today, but it will happen in the future.
That said, I think as my colleague had alluded to, the site is 100% being used right now.
And that is anticipated for the next couple of years.
Like, so we are fully functional using that site for offshore wind more than like supporting the investment the city's made.
And one of my colleagues back at the office wanted me to like also report that we have the largest crane in the United States at this site.
So it is a huge infrastructure investment.
It is something that we are looking forward to in the city.
And while I understand what the federal administration has said about wind, we are bullish on wind in the long term and think it will fully support the city.
I'm now going to pass to my colleague, Councilmember Shanel Thomas-Henry.