Last month, climate activists, energy wonks, and delegates to the United Nations all arrived in New York City to discuss the future of the global energy transition. While there’s uncertainty around the largest economies’ commitment to meaningfully reduce their emissions, electricity demand is rising and shows no signs of stopping.
A new projection from the Energy Information Administration estimates that both 2025 and 2026 will set new records for electricity demand in the United States. In response to rising demand, Governor Kathy Hochul directed the New York Power Authority to expedite the building of new nuclear reactors upstate. These new nuclear reactors will be critical to meet growing demand for electricity. State leaders should work closely with private sector partners and all relevant federal agencies to begin and expedite construction. The current moment presents an opportunity for New York to lead the nation by investing in new nuclear reactors to create economic opportunities and take a big step toward decarbonizing energy consumption.
Energy demand will continue to rise throughout the United States as companies invest in energy intensive industries like artificial intelligence, aerospace, and semiconductor manufacturing. The new Micron semiconductor facility under construction near Syracuse is estimated to use 15,674 gigawatt hours of electricity annually within 15 years, according to a draft Environmental Impact Statement. To give context, a one gigawatt nuclear power plant generates at most 8,760 gigawatt hours per year, only 55.9 percent of what’s needed to operate this single factory. If New York doesn’t build new supply, the state will miss out on significant economic growth and high-paying jobs. Ratepayers will also face higher prices if new supply is hamstrung while demand rises due to increased electrification from electric vehicles and heat pumps.
New York has learned their lesson the hard way. Former Governor Andrew Cuomo’s administration and anti-nuclear groups hounded Entergy to close the Indian Point power plant and it ceased operations in 2021. The CEO of Entergy said that the company spent $200 million dollars trying to secure permission from the state to renew their licenses to operate their reactors. My research found that, as a consequence of Indian Point ceasing its operations, New Yorkers paid an additional $258 million in electricity costs in 2022. These higher energy costs disproportionately affected lower and middle income families who were already suffering from inflation on other necessary goods.
Not only did New Yorkers face higher utility bills but it was a giant step backwards for New York’s ambitious climate goals. In 2023, 93 percent of all power generation in downstate New York came from fossil fuels. Whereas, 91 percent of all power generation came from hydroelectric, wind, and nuclear power upstate. If New York State has any hope of meeting its decarbonization goals, the state will need to secure significant investment in new nuclear power. The successful decarbonization of western New York’s electricity production demonstrates a clear path forward. While there may not be significant opportunities to expand hydroelectric power in the state, new nuclear plants could be sited at a number of locations, including co-location with existing nuclear reactors.
Prior generations of New Yorkers invested in nuclear and hydroelectric power plants upstate as part of a serious economic development plan, and policymakers across the country now have the same opportunity. Nine Mile Point Nuclear Station in Oswego generated 15,500 GWh of electricity in 2024. The plant has 888 employees and its owners pay $30.5 million in annual property taxes. It’s a similar story for James A. FitzPatrick nuclear power plant in Scriba and the R.E. Ginna nuclear power plant in Ontario, New York. Investment in these facilities have delivered immense value to the region and helped their surrounding communities to weather economic hardship.
Building new nuclear power requires significant investment. Legislators can help to lower the cost for developers and ratepayers by streamlining and expediting state-level regulatory processes. For example, New York legislators could create an expedited environmental review process for new nuclear reactors built on brownfield sites. Smart regulation will save families money on their utility bills, reduce aggregate carbon emissions, and create new economic opportunities. President Trump has directed the Nuclear Regulatory Commission to likewise streamline the approval process for new reactors. This is a bipartisan opportunity to raise the standard of living for lower income Americans. If state leaders are serious about decarbonizing electricity production and addressing ratepayer’s concerns, they should follow Governor Hochul’s lead and take action to ensure new nuclear reactors are built under budget and ahead of schedule.