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NEW YORK, NY--At a seminar on ways to encourage construction of power plants in New York City, experts from various sides of the issue agreed on one thing: if reliability is to be maintained and power prices are ever to become competitive, changes need to be made.
Sponsored by the New York Energy Buyers Forum (NYEBF), a coalition of commercial energy customers and energy service companies, the panel included representatives from the Federal Energy Regulatory Commission (FERC), Standard & Poor's, energy marketers, and consultants.
Opening the event, Forum Executive Director Judith Mondre pointed out that New Yorkers are paying nearly a billion dollars a year through installed capacity (ICAP) charges that are four times higher in the city than elsewhere in the state. Such charges are supposed to motivate investors to build new plants, but she questioned if that investment was really occurring.
Derek Bandera, an economist in FERC's Division of the Chief Economic Advisor, reviewed a recent white paper suggesting ways to change the system, ...