NORWICH – State Attorney General Andrew Cuomo is urging the federal government to dismiss New York Regional Interconnect’s request for guaranteed profits, according to a letter his office sent out Tuesday.
Cuomo argues NYRI’s petition – asking for a 13.5 percent annual rate of return for three years – is “premature,” “unjustified” and “excessive.”
Power line officials say they’re only following the precedent set by Washington and fellow transmission investors.
“In short,” states Cuomo, “NYRI’s request asks New Yorkers not only to bear the considerable threats posed by the NYRI (power line) to New York’s environment and to New York’s property, but also guarantee NYRI an excessive profit.”
NYRI officials contend their project – a 400,000 volt power line that would run from Utica to Orange County – is the biggest electricity upgrade proposed in the state in 25 years. They claim it would reduce electricity rates in metropolitan New York, prevent future blackouts and open the grid to environmentally friendly power sources, like windmills.
Based on requirements set by the Federal Energy Regulatory Commission, the agency that oversees return rate incentives, Cuomo says NYRI hasn’t proven its project will benefit anything.
“A party applying to FERC for rate incentives for transmission facilities must show, among other requirements, either that the facility will ensure transmission grid reliability or that the facility will lower power prices by reducing transmission congestion,” Cuomo states. “NYRI can’t base the petition on a presumption that its proposal will support transmission reliability and reduce power prices. This presumption is available only if a state siting authority has approved construction. Here NYRI has not even completed its application to the New York siting authority, much less received state approval that would support any presumption before FERC.”
The state Public Service Commission, New York’s power line authority, has ruled NYRI’s permit application deficient for lacking required information three separate times, which is not uncommon, PSC officials have confirmed.
