New York’s Offshore Wind Power Project Halted by Public Service Commission

New York’s Public Service Commission has made the decision to halt the project that aimed to bring offshore wind power to New York City. This decision comes amidst uncertainties surrounding the availability of wind power and potential cost implications for gas and electric utility customers.

One of the main concerns raised by the commission is that gas and electric utility customers would bear the costs of developing transmission lines to transport wind power that currently does not exist. This situation could leave customers vulnerable to rate hikes, especially in light of recent developments such as President Trump’s decision to block the issuance of new permits for offshore wind projects.

The initial plan, formulated in 2023, aimed to construct new power lines to deliver at least 4,770MW of offshore wind energy to New York City by 2033. However, with the project now cancelled, the future of offshore wind power in the region remains uncertain.

Following the announcement, the New York Independent System Operator received 28 proposals from four different companies offering to build the power lines at costs ranging from $7.9 billion to $23.9 billion. Despite these proposals, the lack of government support and regulatory uncertainty have cast doubt on the feasibility of the project.

PSC chair Rory Christian expressed disappointment over the decision, stating, “We will continue to press forward regarding infrastructure needs for offshore wind in the future once the federal government resumes leasing and permitting for wind energy generation projects.”

The original 2023 plan was designed to help New York City meet its climate goal of 9GW from wind energy by 2035. However, without government support and regulatory clarity, stakeholders are left without a clear path forward in terms of design and implementation of the necessary power lines.