Companies Looking to Charge Ratepayers More for Wind Energy

Inflation, supply chain problems and a drawn-out governmental approval process have put the squeeze on the developers of offshore wind projects, moving them to seek higher prices than their contracts provide. The companies are spending billions to develop the green energy projects and are looking to New York regulators to allow them to charge ratepayers more for their power.

The developers of the Empire Wind 1, Empire Wind 2, Beacon Wind and Sunrise Wind have appealed to the state’s Energy Research and Development Authority and the Public Service Commission for relief.

Said Teddy Muhlfelder, vice president of one of the companies, Equinor Renewables Americas, “Like other developers at the forefront of this emerging U.S. industry, we have seen the estimated costs of our projects rise sharply due to inflation, supply chain disruptions, permitting and interconnection delays, rising interest rates, and other outside factors. While we have worked to manage these issues, given the unique moment in our global economy, this is an industry-wide issue that cannot be overcome at the project level.”

File Photo

Bernard Looney, the CEO of BP, another company looking to charge ratepayers more for the wind-generated power, said, “We will not develop projects that don’t meet our returns threshold, which is why we are in the midst of renegotiating the purchase contracts in the East Coast with our partner, Equinor.” He said the company needs to make 6-8% returns on its investment in the projects.

“NYSERDA is not in a position to comment on matters internal to the joint venture, but is confident in the ability for the developers to meet all their contractual commitments,” an authority spokesman said.