NORWICH – New York Regional Interconnect Inc. announced Thursday that it will contest a new eminent domain law in federal court that curbs the company’s power to take private property at market value.
In a Feb. 1 press release, NYRI said it filed a lawsuit in Albany district court challenging the constitutionality of a revision in the state’s transportation corporation law – which legislators drafted specifically to derail the Albany company’s proposed $1.6 million power line.
“It’s unconstitutional for the legislature to pass a law that targets one person or company or singles them out for different treatment,” said NYRI counsel Leonard Singer.
The suit named 12 current and former state officials, including current Governor Eliot Spitzer, Senators Jim Seward (R-Milford) and Tom Libous (R- Binghamton) and former governor George Pataki, who signed the bill into law Oct. 3, 2006. It contends that several of NYRI’s rights were violated, including its 14th Amendment right of equal protection under the law.
“I’m not surprised by this,” said Libous, who co-sponsored the bill and admitted it was narrow in scope in order to take on NYRI.“They have a right to file a suit – it happens all the time. I think the legislation is good. But it’s always a little scary when it goes to the courts.”
The law only removes the power of eminent domain from a transmission company that meets three specific criteria; the company’s project begins and ends in New York State; its representatives have testified that the project will raise electricity rates in other parts of New York state; and it has applied, and did not receive, an early designation as a National Interest Electricity Transmission Corridor from the U.S. Department of Energy.
“We expected NYRI would challenge that amendment,” said John Kluscik, an attorney for Communities Against Regional Interconnect, an opposition group made up of citizens and officials from the over eight counties. “We aren’t disappointed by that expectation.”
When asked, Kluscik said the law is a significant piece of legislation.
“It’s certainly significant – NYRI’s project would require traversing privately held lands – without that power it could make doing that significantly harder,” said Kluscik, who wouldn’t speculate on how he thinks the law will hold up in federal court. “That will be up to the judge to decide.”
NYRI claims the revision goes against well established laws, and sends a poor message to private investors looking to develop in New York state.
“If the state can target NYRI, it can target any company,” Singer said, “which would clearly be a grave threat to New York’s economic health.”
NYRI is proposing to build a 400,000 volt power line from Oneida to Orange County, spanning 190 miles and bisecting six townships in Chenango County. The project is aimed at relieving energy constraints downstate, using upstate power and upstate land.
Residents along the route have been out it opposition against NYRI since March when the Albany company announced the proposal for fear of negative health, economic, and environmental impacts they believe the line may have. Residents say they were put off early on by NYRI’s demeanor at initial public hearings, where they felt questions about the company, the project and its motives were not clearly addressed.
NYRI has said it will provide a $30 million host community fund for the cities, towns, and villages along the pending line. However, many have said it is not worth the devastation the line would cause in several of the upstate communities.
NYRI’s Article VII review application is currently incomplete and cannot be reviewed by the New York state Public Service Commission until certain information is amended, including proof the line would increase the state’s overall reliability.