Anti-power line group questions NYRI expenditures
CHENANGO COUNTY – New York Regional Interconnect has spent more money on lobbying, land options, public relations and legal fees than on developing technical analysis that proves its $2.2 billion power line is needed, NYRI opponents claim.
Communities Against Regional Interconnect, an eight-county alliance made up of citizens and government officials, is arguing that NYRI should use more resources showing or improving the merit of its project, rather than glossing over what it says are misleading facts and statements about the power line’s benefits to New York state.
To date, NYRI has spent just over $10 million on legal fees, government fees, public relations, salaries, lobbying, and land options, according to an application the company sent to the federal government seeking a 13.5 percent guaranteed rate of return on its investment. Another $3,296,379, or 24 percent of the overall expenditures, was used to pay for engineering and economic consultants.
“NYRI is spending millions of dollars for lobbying and public relations efforts to convince legislators, federal and state regulatory agencies and the public of the need for this project,” said Steve Dimeo, chairman of CARI. “Our assessment of NYRI’s application clearly shows a lack of technical merit, outdated images and maps, assumptions based on incomplete or flawed information and is missing required environmental impact, cultural resources and system reliability data.”
So far NYRI has spent:
• $943,571 on public relations.
• $1,482,811 on government relations.
• $1,048,278 for management salaries.
• $3,260,481 in fees paid to regulatory agencies.
• $1,270,416 in legal fees.
• $2,000,000 in option payments to lease railroad rights of way.
• $3,296,379 on engineering and economic modeling consultants.
Among the individual categories, it appears NYRI has spent the most on economic and engineering consultants.
Citing their own studies and various reports claiming the state will need energy upgrades in the next five to ten years, power line officials argue they aren’t misleading anyone.
“NYRI is proposing a transmission infrastructure upgrade that would benefit the entire state. It would increase energy reliability; lower transmission costs and help the environment by enabling the expansion of renewable energy, such as wind, throughout the state. NYRI believes its project will ultimately be judged fairly on its merits – all fully disclosed in its Article VII filing,” said company spokesman David Kalson Wednesday. “Neither NYRI, nor any other organization proposing such a serious project as an upgrade to New York’s electrical infrastructure, would ever try to mislead anyone, particularly the (Public Service Commission), which is made up of experts who have the responsibility to evaluate every detail of proposed projects.”
Kalson added that the PSC specifically requests that applicants like NYRI pursue a wide range of public relations outreach activities as part of a mandated “Public Involvement Plan.”
NYRI’s project has been sent back twice by the state’s Public Service Commission for lacking required technical information in a number of areas. An electricity reliability impact study was also rejected in May by the New York Independent System Operator, the state’s wholesale energy regulatory.
“NYRI has proven time and again that either they do not want to provide or are incapable of providing the technical information needed for New Yorkers to make an informed decision regarding this project,” said Eve Ann Shwartz, Earlville resident and co-chair of the citizen’s group Stop NYRI. “It should be disconcerting to NYRI investors that NYRI has spent nearly $14 million only to continue to have key regulatory agencies deem their application to be incomplete.”
The state Public Service Commission, the agency that authorizes power line permits, has yet to approve NYRI’s application for review.
Last month the Federal Energy Regulatory Commission, which would regulate NYRI’s line if built, turned away an application by the power line company seeking a 13.5 percent rate of return on its investment. Nora Brownell, a FERC Commissioner until 2006, stated recently in a NYRI newsletter that seeking the guaranteed rate of return is common, since government regulated transmission projects are generally not attractive investments otherwise.
NYRI, an Albany-based company backed by Canadian investors, is proposing to build a power line 190 miles from Oneida to Orange County. The line would run through 44 miles of Chenango County, splitting six townships and two villages.
Communities Against Regional Interconnect, an eight-county alliance made up of citizens and government officials, is arguing that NYRI should use more resources showing or improving the merit of its project, rather than glossing over what it says are misleading facts and statements about the power line’s benefits to New York state.
To date, NYRI has spent just over $10 million on legal fees, government fees, public relations, salaries, lobbying, and land options, according to an application the company sent to the federal government seeking a 13.5 percent guaranteed rate of return on its investment. Another $3,296,379, or 24 percent of the overall expenditures, was used to pay for engineering and economic consultants.
“NYRI is spending millions of dollars for lobbying and public relations efforts to convince legislators, federal and state regulatory agencies and the public of the need for this project,” said Steve Dimeo, chairman of CARI. “Our assessment of NYRI’s application clearly shows a lack of technical merit, outdated images and maps, assumptions based on incomplete or flawed information and is missing required environmental impact, cultural resources and system reliability data.”
So far NYRI has spent:
• $943,571 on public relations.
• $1,482,811 on government relations.
• $1,048,278 for management salaries.
• $3,260,481 in fees paid to regulatory agencies.
• $1,270,416 in legal fees.
• $2,000,000 in option payments to lease railroad rights of way.
• $3,296,379 on engineering and economic modeling consultants.
Among the individual categories, it appears NYRI has spent the most on economic and engineering consultants.
Citing their own studies and various reports claiming the state will need energy upgrades in the next five to ten years, power line officials argue they aren’t misleading anyone.
“NYRI is proposing a transmission infrastructure upgrade that would benefit the entire state. It would increase energy reliability; lower transmission costs and help the environment by enabling the expansion of renewable energy, such as wind, throughout the state. NYRI believes its project will ultimately be judged fairly on its merits – all fully disclosed in its Article VII filing,” said company spokesman David Kalson Wednesday. “Neither NYRI, nor any other organization proposing such a serious project as an upgrade to New York’s electrical infrastructure, would ever try to mislead anyone, particularly the (Public Service Commission), which is made up of experts who have the responsibility to evaluate every detail of proposed projects.”
Kalson added that the PSC specifically requests that applicants like NYRI pursue a wide range of public relations outreach activities as part of a mandated “Public Involvement Plan.”
NYRI’s project has been sent back twice by the state’s Public Service Commission for lacking required technical information in a number of areas. An electricity reliability impact study was also rejected in May by the New York Independent System Operator, the state’s wholesale energy regulatory.
“NYRI has proven time and again that either they do not want to provide or are incapable of providing the technical information needed for New Yorkers to make an informed decision regarding this project,” said Eve Ann Shwartz, Earlville resident and co-chair of the citizen’s group Stop NYRI. “It should be disconcerting to NYRI investors that NYRI has spent nearly $14 million only to continue to have key regulatory agencies deem their application to be incomplete.”
The state Public Service Commission, the agency that authorizes power line permits, has yet to approve NYRI’s application for review.
Last month the Federal Energy Regulatory Commission, which would regulate NYRI’s line if built, turned away an application by the power line company seeking a 13.5 percent rate of return on its investment. Nora Brownell, a FERC Commissioner until 2006, stated recently in a NYRI newsletter that seeking the guaranteed rate of return is common, since government regulated transmission projects are generally not attractive investments otherwise.
NYRI, an Albany-based company backed by Canadian investors, is proposing to build a power line 190 miles from Oneida to Orange County. The line would run through 44 miles of Chenango County, splitting six townships and two villages.
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