CHENANGO COUNTY – Just because the state’s electricity operator says the project isn’t needed, that doesn’t mean New York Regional Interconnect’s 400,000 volt power line – if built – wouldn’t still improve overall energy reliability, company officials claim.
However, opponents of the $1.6 billion line ask if it’s worth devastating upstate communities to improve on what looks to be a secure 10-year energy supply – especially since, according to energy officials, NYRI’s project would receive government reimbursements and pass on its investment risks to consumers.
Citing the same 2007 “Comprehensive Reliability Plan” released by the New York Independent System Operator that says its 190-mile-long power line “need not be implemented,” NYRI spokesman David Kalson still touts the project as an important upgrade in New York’s energy system.
“The NYISO CRPP (Comprehensive Reliability Plan) specifically found that NYRI will improve reliability and satisfy a portion of the reliability needs identified by the NYISO,” Kalson wrote Thursday in an e-mail sent to The Evening Sun. “It found that proposed market-based solutions would also meet the identified reliability needs, but it went on to identify significant risk factors associated with those projects, none of which have been permitted or built. The NYISO has concluded that the reliability of the New York power system is in jeopardy unless new resources are built. The NYRI project is part of the solution to this serious issue.”
In its report, NYISO – a non-profit corporation that manages the flow of wholesale energy in New York – concludes there are a “more than sufficient” number of planned projects and market-based solutions – in which investors are reimbursed by the free market, and not government subsidies – to “meet or exceed” the state’s electricity needs through 2016 without NYRI’s line. In fact, the NYRI power line was not listed among the immediate options if the expected upgrades fail.
As it stands now, the project – which would plant 115-foot-tall steel towers across upstate countryside from Utica to Orange County – would be overkill, says Daniel Duthie, an energy lawyer representing the City of Utica in its fight against NYRI.
“The question is, how much extra (electricity) are you willing to pay for?” asked Duthie. “Think of it this way, you could always use a car with a 500-horse power motor, but you’ll get along just fine with a 300 or 200.”
The NYISO does state that “all of the alternative regulated responses,” which include NYRI, “would improve reliability and satisfy some portion of the need.” However, it also says that “New York (state) need not implement” any of them.
NYRI, a Canadian-backed company with an office in Albany, claims its project would lower energy bills for downstate customers and prevent future blackouts. However, under questioning by a state senate committee, company representatives admitted the line would raise upstate utility rates and that they were unsure if the project would benefit private or public good.
NYRI can still apply for a permit from the New York state Public Service Commission – the state’s power line authority. The NYISO report has no official bearing on the PSC’s final decision, but an agency spokesman said it will “review it.” NYRI has yet to file a complete review application. Its first was ruled deficient in July 2006.
“A major part of the PSC review involves proving there is a public need for the project,” Duthie said. “This report certainly undermines that.”
Duthie did says there’s a chance the need for NYRI’s project could change from year to year.
“But they have to demonstrate there is really a need,” he reiterated. “They (NYRI) certainly have more wood to chop at this point.”
The comprehensive plan did list a number of risks that could delay or derail the “more than sufficient” solutions. Risks include: the absence of a streamlined approval process, fuel diversity concerns, and changes in environmental rules and regulations. However, NYRI’s project was behind four others in the line of succession if any of the top eight energy remedies failed.
The NYISO report does claims that transmission projects like NYRI’s have the potential to increase energy flexibility downstate.
“The transmission alternative regulated solution would benefit resource adequacy only if there is additional capacity available to be delivered. Transmission projects also provide the flexibility to site additional resources in upstate New York, and can provide other benefits.”
NYISO spokesman Ken Klapp said, however, that his organization prefers projects that are market-based.
“With the alternative solutions (NYRI), the financial risk is taken on by the customer,” he said. “We prefer market-based solutions.”
The NYISO is non-profit organization that operates the electricity grid and regulates the wholesale energy market. Its report was created and reviewed by a host of private and public sector energy experts.