California Council on Science and TechnologyOctober 31, 2006

Session II: Cost Benefits and Trade Offs

Peter R. SmithPresident & CEO

NYSERDA

Petroleum

Coal

25%

7%37%

New York State United States

Natural Gas

Nuclear

Hydro

45%

10%

7%3%

9%

3%

Other

6%

CoalNatural Gas25%

Petroleum

23%

Hydro

NuclearOther

2004 Primary Energy Consumption by Fuel Type Comparison

Source: NYSERDA, Patterns and Trends Report, December 2005

Transportation

Electric Generation

11%

38%

13%

31%

New York State United States

29%

5%

17% 8%

5%

43%

Industrial

Commercial

Residential

Residential

CommercialIndustrial

Transportation

Electric Generation

Source: NYSERDA, Patterns and Trends Report, December 2005

2004 Primary Energy Consumption by Sector Comparison

Petroleum

Coal

24%

17%25%

20%

1990 2005

Natural Gas

NuclearHydro

Renewables

16%

19%

19%

1%13%

14%

14%4%

Imports

Natural Gas

Petroleum

Hydro

Nuclear

Coal

Renewables

Imports12%

2%

New York State Electricity Generation Mix

Source: NYSERDA Patterns and Trends Report

Alternative Electricity Generation Technology Costs

(Total Life-Cycle Costs for a 500 MW resource block)

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35E

nerg

y E

ffic

ienc

y

Lan

dfil

l Gas

Scru

bbed

Coa

l New

IGC

C

Geo

ther

mal

Adv

ance

d C

C

Con

vent

iona

l CC

Adv

ance

d N

ucle

ar

Win

d

Bio

mas

s

IGC

C w

ith

Sequ

estr

atio

n

Adv

ance

d C

C w

ith

Sequ

estr

atio

n

Con

vent

iona

l CT

DG

Bas

e

DG

Pea

k

Adv

ance

d C

T

Fue

l Cel

ls

PV

Sola

r T

herm

al

Tot

al C

apit

al &

Op

erat

ing

Cos

ts in

200

3$/k

wh

Note: Energy efficiency technologies can be purchased at varying costsup to the point where some other alternative is cheaper

Value of Clean Energy Alternatives

• Potential Exists for Energy Efficiency to Meet an Even Greater Share of Our Energy Needs

• Renewable Energy, While More Costly, Positions the State to be a Leader in Technology Development

• Energy Efficiency and Renewable Energy Resources … incremental, easy to site and short lead times.

“Governor Pataki Spearheads Regional Initiative”

Established Green House Gas Task Force Asked governors from Maine to Maryland to join regional strategy to reduce CO2 emissions Regional Greenhouse Gas Initiative (RGGI) was born New York is lead State and heads up modeling effort Seven states have signed on to RGGI Governor Schwarzenegger travels to New York …