However, he ruled out nuclear power, telling reporters after a breakfast meeting, "There is simply no tolerance in New York State for additional nuclear plants."

Entergy Corp.'s Indian Point nuclear plant also should be shut once alternatives are built, Spitzer added, explaining that its location just north of New York City makes it impossible to evacuate residents in the event of an accident.

"That is simply not a smart location for a nuclear power plant ... We simply cannot turn it off until we have replacement power."

Saying he wished to break with former Republican Gov. George Pataki's policies, Spitzer added he would encourage utilities to sign long-term contracts. This should help them win private investors by strengthening their forecasts and cut their borrowing costs, Spitzer said.