ALBANY – A federal judge ruled Friday that New York Regional Interconnect Inc. has no case against the legislators who changed a state law last year to prohibit the power line company from legally taking private property needed for its $1.6 billion project.
NYRI filed a lawsuit last February in U.S. District Court in Albany against a dozen current and former lawmakers who crafted a revision to state utility law that blocks the company’s right to use eminent domain, saying the amendment – signed into law by former Governor George Pataki in October 2006 – violates the constitution and its right to equal protection under the law.
“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 attorney Leonard Singer back in February.
Over 19 months after announcing the project, Albany-based NYRI has yet to undergo a state review or provide a complete power line permit application.
Attorney General Andrew Cuomo sees U.S. District Judge Thomas McAvoy’s decision to throw out the case Friday as “a win” for homeowners across New York.
“The judge’s decision is a win for home owners in Central New York and across the state,” said Cuomo in a prepared statement Friday. “As Attorney General, I will continue to fight for New York’s right to make decisions on projects like NYRI based on our state’s environmental and energy needs, not on the desires of private companies or the federal government.”
Recent reports from state and national electricity grid operators state that New York’s increasing energy demands can be met without NYRI’s proposal, which would deliver upstate electricity through a 190-mile-long transmission line to power-starved areas in and around New York City.
The line would cut through eight counties, including six townships and 44 miles in Chenango.
The grid reports have re-affirmed NYRI’s opponent’s claims that the company is not seeking to improve the state’s energy infrastructure, but rather – fueled by overblown policies coming out of Washington – is looking to make a big profit at the expense of upstate communities.
“We are very happy,” said Earlville resident Eve Ann Shwartz. “We are very pleased by the judge’s decision, which is one more nail in the NYRI project’s coffin.”
NYRI, however, 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.”
The company did not return messages by press time seeking comment early Monday morning.
The suit named 12 current and former state officials, including current Governor Elite Spritzer, Senators Jim Seaward (R-Oneonta) 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.
The lawsuit was thrown out in part because individual legislators and officers have immunity from lawsuits when creating legislation. The judge also cited a “lack of standing” when considering the grounds of NYRI’s claim.
The amendment specifically targets energy corporations that plan to use eminent domain to construct transmissions lines that begin and end in New York state; that have applied and been denied early federal designation as a national interest electricity transmission corridor; or that have representatives who have testified that the project would raise energy rates in another part of the state.
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.
The company may be able to over-step state authority and seek approval from the federal government, which recently designated most of New York state as a part of a “National Interest Electric Transmission Corridor.” Inside a corridor, the Federal Energy Regulatory Commission can take-over a power line review if a state agency denies or fails to approve a project within one year of receiving a complete application. The corridors are meant to boost transmission line investment, which Washington and energy experts say is lagging.
Shwartz said Stop NYRI is working with a number of area environmental and historical groups to refute the corridor designations, and is calling on Cuomo to fight them as well.
“We will not rest until decisions about New York’s energy future are taken from Federal regulators and returned to the people of our state,” she said. “We call upon Attorney General Cuomo to continue to defend the citizens of New York state by taking a leadership role in opposing the recent NIETC designations at the federal level.”