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Tuesday, June 18, 2019

The Suicide of New York

The state of New York just decided to commit suicide in slow motion.  Most people don't even know about it; it hasn't gotten much media attention in New York City or across the state.  Still, the legislature enacted new laws that require all electricity generation to come from carbon free sources by 2040.  There's other drastic restrictions on carbon emissions, but it's the electric power limitations that are the most significant.  And remember, New York also won't allow construction of any new nuclear power plants even though they are free of carbon emissions.  It looks like all of New York is to be powered by hydroelectric power, solar and wind energy.  That is something which cannot be done.  There is no additional hydro power to develop.  Solar and wind are not yet efficient enough to generate the power needed for New York, and there are many times at night when there's no wind.  That means there's no solar and no wind energy.  The reality is that this new law is basically requiring New York to purchase its electricity from other states or countries.  That will lead to much, much higher prices for electricity and that will kill businesses across the state.

Just look at the natural gas industry.  Natural gas has resulted in a major reduction in carbon emissions as gas powered plants replace coal powered ones.  That change has made the USA the only large industrial nation to actually be on track to meet the goals of the Paris Agreement (even though we withdrew from that agreement.)  New York, Pennsylvania, Ohio and West Virginia lie over the Marcellus Shale which is the biggest natural gas deposit in the world.  New York banned drilling using fracking which is the only way to get the gas from the shale.  Pennsylvania, on the other hand, promoted drilling.  As a result, PA gained roughly 350,000 jobs and huge income gains for the land owners in some of the poorest area of that state.  New York got nothing.  New York also stopped construction of new gas pipelines across the state.  As a result, the gas utilities will no longer accept new customers.  New homes are being built using either electric or oil as a heating method.  Both of those are not a free from emissions as gas, but NY gets to talk about how it is cutting down on natural gas.  It costs much more to heat the average home in NY than it does in PA even though the climate is basically the same. 

As the date for emission free electric generation approaches, it will not make sense to update the existing plants and certainly will be idiotic for a company to build any new power plants.  New York will just make the cost of living in the state higher and higher.  It's slow motion suicide.

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