New York PSC Greenlights Important Transmission Upgrades

On Thursday, the New York State Public Service Commission approved several key projects to address New York’s pressing electric reliability needs. The Commission gave the green light to the Department of Public Service to move forward with proposed in-state solutions for critical upgrades to New York’s electric grid.  The improvements include: 

• Create a second 27-mile 345 kV transmission line from Central Hudson’s Rock Tavern substation in Orange County to Con Edison’s Ramapo substation in Rockland County;
• Improve the efficiency of the Marcy South power lines and re-conductor a 22-mile section of the existing NYSEG 345 kV transmission line between Fraser substation in Delaware County to Coopers Corners substation in Sullivan County; and
• Reconfigure transmission substations in Linden, NJ and Goethals, Staten Island and Brooklyn to mitigate system contingencies and provide enhanced cooling of underground transmission circuits.

These projects are expected to increase power transfer capability and reduce existing bottlenecks in New York’s electric grid. By approving these projects, the PSC is taking the first steps to address the urgent need to improve the overall reliability of New York’s aging transmission grid and harden our energy infrastructure so we are protected from future Superstorms like Sandy. These in-state solutions will facilitate the delivery of electricity from Upstate to the downstate region, supplying New Yorkers with power that is “Made in New York” while also preserving New York jobs. 

A possible benefit of pursuing in-state power projects is that it may help reduce electric bills when new federal rules take effect next year. In 2007, the Federal Energy Regulatory Commission mandated that New York must develop a new power capacity zone to address growing demand.  This market-based approach follows time tested and proven methods of keeping power generation close to demand sources. While the immediate result will be an increase in both wholesale and retail electricity prices, as noted by the PSC, these higher prices will incentivize owners of retired power plants to reignite their turbines and sell power (again) to drive down rates over the long run creating a more reliable system.

In laymen terms, our electric bills are scheduled to rise in 2014 and increased competition will eventually lower prices in the Hudson Valley area.  

In a statement, New York AREA chairman Arthur “Jerry” Kremer said, “The Commission prudently gave their attention to in-state electric transmission projects, which have been on the drawing board for a long time and will address bottlenecks in our system. These transmission upgrades, along with our existing in-state power generation sources, such as Indian Point, will allow for the continued supply of affordable and reliable power for New Yorkers.”

The PSC’s actions underscore the urgency to address what is perhaps New York’s most formidable energy challenge – to incentivize private investment for critical improvements to our three decade-old electric system.  As we continue to move forward with energy planning in New York, this should remain our highest priority.