New York OK's New Power Line from Canada to NYC

The state Public Service Commission has approved the construction and operation of a $2 billion 1,000 megawatt transmission line stretching 330 miles from the Canadian border to Astoria, Queens, primarily through Lake Champlain and the Hudson River.

The project, with some segments on land in locations including Stony Point, primarily in railroad or state highway rights-of-way, was opposed by some public officials in the Rockland, who argued there was not enough public discussion of the project. They also called for the state to look at re-opening closed power plants in Rockland County as sources of energy - and jobs.

The line would terminate at a converter station located in Consolidated Edison’s Astoria annex. From there, one high voltage, alternating current (HVAC) circuit will connect, via underground conduit, to the nearby substation of the New York Power Authority (NYPA).  From the NYPA substation, another set of HVAC cables would be located under the streets for about three miles to Con Edison’s Rainey substation.

The transmission line, estimated by the developer to cost $2 billion, would be built either underwater or underground along the entire length of the route, avoiding or minimizing visual and other potential environmental impacts. 

“With this order, we grant the developer a certificate to construct and operate a transmission project known as the Champlain Hudson Power Express Project,” said PSC Chairman Garry Brown. "The certificate will adopt most of the terms and conditions presented to us in a joint proposal and in stipulations that have the full or partial support of a wide range of parties to this case."

The PSC said a key factor in the commission’s decision to approve the project is the fact that the financial risk to ratepayers is minimized since ratepayers will not be required to assume the financial risks to build the project; ratepayers will be protected from construction and operation costs.

While the commission’s decision represents a major step to build the privately funded transmission line, it is not the final step.

Project developers still need to obtain several federal permits, as well as secure private financing. The project owners, Champlain Hudson Power Express, Inc. and CHPE Properties, Inc., applied for a certificate of environmental compatibility and public need for the siting of major utility transmission facilities to construct and operate the high voltage, direct current transmission line under Article VII of the Public Service Law. 

In addition to providing renewable energy and shielding ratepayers, the PSC says the project offers other significant benefits:

• The facility would provide substantial annual air pollutant emissions benefits;
• Bringing hydroelectric power to New York City would enhance fuel diversity as New York City currently relies significantly on gas- and oil-fired generation, which raises both fuel diversity and electric reliability concerns. The energy imported could amount to more than 10 percent of the energy consumption in the city, a significant amount of added capability that would enhance energy security by providing another source of power;
• The interconnection with the Quebec, Canada regional transmission system would provide stronger transmission ties into New York City, one of the most congested load pockets in the state;
• The new power line would help reduce strain on the gas transportation system by allowing imports of electricity from outside the city. Demand for natural gas use is increasing in New York City due to increased use of gas for electric generation and the gas conversion needs resulting from New York City’s phase out of use of #4 and #6 oils for home and business heating purposes.  The increase in gas demand could strain the gas transportation system into and within New York City;
• The addition of a major new supplier would help reduce the ability of various players to exercise market power. New York City is an area with pivotal suppliers having the ability to exercise market power, but suppliers are constrained by federal market rules.; and
• There would be significant environmental enhancements. While negative environmental impacts are minimal, the applicants have agreed to create and fund a $117.15 million trust for the enhancement of aquatic habitats and fisheries resources in Lake Champlain and the Hudson, Harlem, and East rivers and their tributaries.

The review of the project began with an application filed March 30, 2010. The proposal was supported by several state agencies, the cities of New York and Yonkers, Consolidated Edison, and several environmental organizations, including Riverkeeper and Scenic Hudson.

The PSC said changes in the route from what was initially proposed helped reduce environmental impact.