Sunday, September 30, 2007

Report: NYRI isn't needed by Tom Grace

New York Independent System Operator has issued a report concluding power from the proposed NYRI transmission line will probably not be needed through 2016.

The nonprofit organization that operates the state's bulk electricity grid and administers wholesale markets also classified the project below at least a dozen others.

The New York Regional Interconnection proposal calls for building a 1,200-megawatt transmission line from Marcy in Oneida County through parts of Chenango and Delaware counties to New Windsor in Orange County.

Proponents have said it is needed to meet the rising demand for electricity in the state.

However, the NYISO board of directors approved a report this week that indicates that other, less-expensive proposals appear likely to satisfy the state's demand through 2016, according to spokesman Ken Klapp.

``We have identified eight market-based proposals that appear viable,'' he said Friday.

A market-based proposal is one where the project's costs is assumed by the developer and not used to increase the price of electricity charged to ratepayers.

``We prefer market-based proposals to those that increase the rate base,'' Klapp said.

In addition, NYISO evaluated four proposals from utility companies to increase the flow of electricity in the state, he said.

If the market-based proposals fall short of meeting demand, the options from traditional utilities, which would raise the cost of power, could be implemented.

NYRI is classified in a third category, as a project that would raise the price of power from a firm that is not a utility.

Klapp said Friday that the NYISO board of directors had reached the same conclusion _ that NYRI appears not to be needed _ last year.

``But we always re-evaluating the system,'' he said. ``I like to compare it to the weather. A meteorologist may say on Wednesday that it will be sunny on Saturday, but he doesn't stop looking at what is developing as the week goes on.''

An opponent to NYRI's $1.6 billion proposed line cheered the NYISO's report.

In an e-mail sent to The Daily Star, Chris Rossi, co-chairwoman of Stop NYRI Inc., said, ``The NYISO report confirms what we already understood: The NYRI project was not created to meet the electrical needs of NYS consumers and businesses.

``Its chief purpose was to generate profits for Canadian shareholders," she continued. "The NYISO report is one more solid reason for New York State to say no to NYRI.''

David Kalson, NYRI's spokesman, could not be reached for comment Friday.

NYRI's application to the state's Public Service Commission remains incomplete. The firm also has been working to have the Federal Energy Regulatory Commission supercede the authority of state regulators and permit the project to be built.

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