Eversource Investment Service Company LLC Comments on Petition of Consolidated Edison Company of New York, Inc. For Approval To Recover Costs Of Brooklyn Clean Energy Hub

Strategic Insights -

The New York Public Service Commission is considering a petition filed by Consolidated Edison Company of New York, Inc. to recover the costs of the Brooklyn Clean Energy Hub, a proposed energy hub to interconnect offshore wind power into the state's electrical grid. Eversource Investment Service Company LLC, an affiliate of Eversource and a partner in Bay State Wind LLC, has submitted comments in response to the petition, highlighting concerns about the technical feasibility and system implications of the proposed hub. The company suggests that the Commission closely examine the level of detail of the technical information provided in the petition and consider establishing a framework for obtaining input from developers, local communities, and other stakeholders.

Key Takeaways:

  • The proposed Brooklyn Clean Energy Hub is an important step in the Commission's consideration of an energy hub to interconnect much of the CLCPA-required 9,000 MW of offshore wind power into the State's electrical grid.
  • The technical feasibility of the Con Edison Hub is uncertain, with several technical elements requiring further review, including cable landings, soil conditions, and environmental impacts.
  • The Commission should consider the proposed Con Edison Hub's potential system and market implications, including the potential for suppressing nodal prices and disrupting the functioning of typical Offshore Wind Renewable Energy Certificates agreements.
  • The timeline for moving forward with the Con Edison Hub should not be driven by the NYSERDA 2022 Offshore Wind Solicitation, and the two initiatives should be separated.
  • The Commission should consider whether the Con Edison Hub could impair NYSERDA's anticipated offshore wind solicitations issued after 2022.

Statistics:

  • 9,000 MW of offshore wind energy required by the Climate Leadership and Community Protection Act by 2035
  • 16 submarine cables located in a narrow waterfront landing area near the Con Edison Hub
  • 4 acres of space available for the Con Edison Hub, which could constrain the potential injection capacity of the proposed hub
  • 6,000 MW of intermittent resources expected to be injected at the Farragut node, potentially suppressing nodal prices

Sources:

  • State of New York Public Service Commission Case 20-E-0197 - Proceeding on Motion of the Commission to Implement Transmission Planning Pursuant to the Accelerated Renewable Energy Growth and Community Benefit Act
  • Commenters: Eversource Investment Service Company LLC (July 11, 2022)
  • Consolidated Edison Company of New York, Inc. (Petitioner)
  • Eversource (NYSE: ES)