Rep. Hinchey Hails FERC Denial of NYRI Appeal

October 16, 2009 -- Washington, DC - Congressman Maurice Hinchey (D-NY) today lauded the final decision filed yesterday by the Federal Energy Regulatory Commission (FERC) that effectively kills New York Regional Interconnect's (NYRI) efforts to keep alive its suspended power line proposal.

The FERC decision denied the request submitted by NYRI for reconsideration of the agency's prior decisions that would effectively prevent NYRI from tapping ratepayer subsidies for its massive power line proposal. Hinchey, along with U.S. Reps. Michael A. Arcuri (D-NY) and John Hall (D-NY), had written to the federal agency in July expressing strong opposition to NYRI's rehearing request and reiterating their opposition to the project.

Article continues below...

"I applaud FERC's decision to deny NYRI's request. This is the latest in a string of setbacks that NYRI has faced in its failed bid to construct massive power lines across New York state," Hinchey said. "NYRI submitted its rehearing request to FERC earlier this year, trying once again to pave the way for ratepayer subsidies for its project. FERC's unequivocal rejection of NYRI's position and repudiation of NYRI's arguments finally close the door on the possibility of ratepayer subsidies for this project. Since the project sponsors themselves have stated that the project is not viable without such subsidies, FERC's decision represents what appears to be the final nail in the coffin of this ill-conceived project."

In its "Order on Rehearing and Motion" dated October 15, 2009, FERC denied NYRI's request for rehearing of the agency's March 31, 2009 Order that effectively blocked NYRI from tapping ratepayer subsidies for its power line. NYRI had appealed the FERC ruling that refused to overturn the New York Independent System Operator's (NYISO) provisions for granting ratepayer subsidies for electricity transmission projects. The NYISO voting provisions, which were upheld by FERC, effectively prevent NYRI from gaining ratepayer subsidies for its power line proposal. The company suspended its pending application with the New York Public Service Commission following FERC's decision, indicating that without access to ratepayer subsidies, the NYRI project would not be economically viable.

Following NYRI's request for a rehearing from FERC, Hinchey, Hall and Arcuri expressed their continued opposition to the project in a joint letter to FERC Chairman Jon Wellinghoff.

Source: Congressman Maurice Hinchey