NORWICH – New York Regional Interconnect Inc.’s power line proposal is still a New York state issue – for the time being.
Under the direction of the state’s Public Service Commission, NYRI is currently supplementing its deficient Article VII citing application and investigating the possibility of using alternative routes, such as building along the Thruway or the Marcy South Power Line trail, as was first reported by The Evening Sun on Nov. 13.
But state and federal agencies have increased measures to prepare for Washington’s involvement in the project since a federal study in August confirmed that metropolitan New York – where NYRI claims the line would benefit – is in critical need of energy relief. Aside from conducting the study, however, the U.S. Department of Energy hasn’t taken any further steps guided by the 2005 Energy Policy Act to potentially remove the state’s authority to solve the problem – and open another door for NYRI to slip its project through.
To do so, the DOE would have to first designate southern New York as a National Interest Electric Transmission Corridor, giving the Federal Energy Regulatory Commission authority over state jurisdiction – under certain circumstances – within that region.
“The Department is proceeding as expeditiously as possible,” said Poonum Agrawal, an official with the U.S. Department of Energy. “To date, the Secretary has not decided whether or not, and if so where, a National Corridor designation would be appropriate.”
NYRI is planning to build a 190-mile long power line from Marcy to New Windsor, bisecting 44 miles and six townships within Chenango County. The project is aimed at removing upstate electricity and transporting it over eight counties that comprise both rural and developed areas, in an effort to relieve energy constraints downstate.
NYRI officials have said they are thoroughly involved in the state process and are not banking on FERC approval. However, prior to its May 31 submission to the PSC, the company requested an early corridor designation for its route from the DOE.
Initially, FERC was only allowed to step-in if a corridor state didn’t have a power line citing authority or if that agency withheld approval on a project for more than one year after the review began. However, FERC has now given itself power to review a project in a corridor state – even if that project is denied within the one year window.
“One of the circumstances where FERC is authorized to issue a construction permit for a transmission project in a designated corridor is where a state siting body has ‘withheld approval’ for a year,” said FERC chairman Joseph Kelliher in Nov. 16 press release. “We interpret this term using the usual rules of statutory construction, and conclude the most reasonable interpretation is that the term encompasses both state failure to act and denial.”
FERC commissioner Suedeen Kelly was the only commission member to offer a dissenting opinion on the decision.
“States have always had exclusive, plenary jurisdiction over transmission siting,” said Kelly. “It gives states two options: Either issue a permit, or we’ll do it for them. Obviously this is no choice. This is preemption.”
FERC will also be providing project developers several incentives to invest in the nation’s transmission system, which include; the full recovery of prudently incurred construction work in progress; and the full recovery of prudently incurred pre-operations costs.