Who will foot the bill for NYRI?
WASHINGTON, D.C. – The application to build a 190-mile electric transmission line through upstate New York has yet to be approved, but that has not stopped the Federal Energy Regulatory Commission from conditionally granting incentives for the project.
New York Regional Interconnect’s Article VII application has just begun the year-long review process, but a controversial decision by the FERC Thursday could mean New York State taxpayers would end up picking up the tab for the project, which the company currently estimates at close to $2.1 billion.
According to a press statement issued by the FERC regarding the decision, the commission’s conditional approval of a guaranteed 2.75 percent return on equity (ROE) in addition to the company’s earnings is “intended to enable NYRI to attract investment necessary to develop the project.”
“FERC recognizes the need for and promotes greater investment in energy infrastructure to strengthen and improve reliability of the transmission grid,” said FERC Chairman Joseph T. Kelliher.
The commission’s ruling was made in response to a petition filed by NYRI earlier this year requesting incentive rates established by the Energy Policy Act of 2005 designed to encourage construction for new transmission infrastructure.
According to the document, the specific incentives granted are for NYRI’s planned participation in the New York Independent Operator System, creating an independent transmission company and combining transmission and advanced technology.
The commission’s approval is conditional on the New York Public Service Commission “finding that the project will ensure reliability or reduce congestion, and granting siting approval, as requested by NYRI.”
The FERC did dismiss certain other incentive requests made by NYRI as “premature,” stating that these items related to rate impacts and cost allocations could be reevaluated if and when the project was approved.
Even on its conditional basis, the decision has legislators up in arms. “Ratepayer subsidies to NYRI are unwarranted and outrageous and further proof that FERC is too close to the industry. Now it is vital for the New York Public Service Commission to scour NYRI’s application with a fine-tooth comb, and we hope that will lead them to reject it as too intrusive and unnecessary,” said U.S. Senator Charles E. Schumer.
“I find this decision by FERC ... to be an unconscionable and indefensible burden on taxpayers,” said Congressman Michael Arcuri. “We all know the NYRI project will raise electric rates for consumers in Upstate New York, and to force local citizens to guarantee profits for NYRI’s secret shareholders is equally unacceptable. I will continue to fight the NYRI proposal every step of the way.”
Residents of the 24th district, which Arcuri represents, are encouraged to submit their comments on NYRI through the Congressman’s website, www.arcuri.house.gov.
New York Regional Interconnect’s Article VII application has just begun the year-long review process, but a controversial decision by the FERC Thursday could mean New York State taxpayers would end up picking up the tab for the project, which the company currently estimates at close to $2.1 billion.
According to a press statement issued by the FERC regarding the decision, the commission’s conditional approval of a guaranteed 2.75 percent return on equity (ROE) in addition to the company’s earnings is “intended to enable NYRI to attract investment necessary to develop the project.”
“FERC recognizes the need for and promotes greater investment in energy infrastructure to strengthen and improve reliability of the transmission grid,” said FERC Chairman Joseph T. Kelliher.
The commission’s ruling was made in response to a petition filed by NYRI earlier this year requesting incentive rates established by the Energy Policy Act of 2005 designed to encourage construction for new transmission infrastructure.
According to the document, the specific incentives granted are for NYRI’s planned participation in the New York Independent Operator System, creating an independent transmission company and combining transmission and advanced technology.
The commission’s approval is conditional on the New York Public Service Commission “finding that the project will ensure reliability or reduce congestion, and granting siting approval, as requested by NYRI.”
The FERC did dismiss certain other incentive requests made by NYRI as “premature,” stating that these items related to rate impacts and cost allocations could be reevaluated if and when the project was approved.
Even on its conditional basis, the decision has legislators up in arms. “Ratepayer subsidies to NYRI are unwarranted and outrageous and further proof that FERC is too close to the industry. Now it is vital for the New York Public Service Commission to scour NYRI’s application with a fine-tooth comb, and we hope that will lead them to reject it as too intrusive and unnecessary,” said U.S. Senator Charles E. Schumer.
“I find this decision by FERC ... to be an unconscionable and indefensible burden on taxpayers,” said Congressman Michael Arcuri. “We all know the NYRI project will raise electric rates for consumers in Upstate New York, and to force local citizens to guarantee profits for NYRI’s secret shareholders is equally unacceptable. I will continue to fight the NYRI proposal every step of the way.”
Residents of the 24th district, which Arcuri represents, are encouraged to submit their comments on NYRI through the Congressman’s website, www.arcuri.house.gov.
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