PA Senator starts online petition against energy corridors

NYRI asks FERC to guarantee 13.5 percent profit

By FRITZ MAYER

UPPER DELAWARE REGION — Bob Casey is a busy fellow. A search on Google news will turn up hundreds of articles explaining that the U.S. junior Senator from Pennsylvania has endorsed Senator Barack Obama in the race for the White House. It will also turn up a few stories about Casey’s online petition against the establishment of an energy corridor in the Keystone State ( casey.senate.gov/actions/ ).

On his website, Casey says the corridor, which is more formally called a National Interest Electricity Transmission Corridor, makes renewable sources of energy less economically viable, and undermines the state’s commitment to the reduction of greenhouse gasses.

Most of Pennsylvania, like most of New York, is part of the Mid-Atlantic Corridor, as designated by the Department of Energy (DOE). Although various groups are suing the DOE over the designations, planned projects in Pennsylvania, New York and several other states may depend on the corridor status to move forward.

Meanwhile, New York Regional Interconnection (NYRI), the company that wants to build a 200-mile power line in New York against the wishes of just about all upstate politicians, is asking the federal government to allow a return of 13.5 percent on its investment of possibly $2 billion to construct the power line. The Energy Policy Act of 2005 allows for the Federal Energy Regulatory Commission (FERC) to determine the rate of return on regulated facilities, which the NYRI power line would be. All costs associated with the construction of the power line, if it becomes a reality, will be passed on to ratepayers.

That has caused elected officials such as Congressman Maurice Hinchey to lash out both at NYRI and the Energy Act that makes this possible. In a statement, Hinchey, who called the move “corporate socialism,” said, “The audacity of NYRI requesting rate incentives is stunning. Not only has this corporation worked to circumvent state permitting authority and force their ill-conceived power line upon communities throughout eight counties, but now it wants New York ratepayers to guarantee NYRI’s investors a handsome profit.”

The statement continued, “In essence, ratepayers will be forced to subsidize a foreign-owned corporation for its costs of developing this power line, including seizing private property, and investor profits for an unjustified project that will destroy many of our communities.”

Hinchey promised to continue to pursue a variety of legislative solutions to block NYRI from moving forward.

Also on the NYRI front, lawmakers in the New York Assembly have attached language to the budget bill that would compel NYRI to pay the legal costs of groups, or interveners, who oppose and challenge power line projects through the permitting process of the New York Public Service Commission. Such laws are already in place for interveners opposed to the siting of new power plants.

According to a spokesman for Assemblywoman Aileen Gunther, the language might not become law because it may be blocked in negotiations with the state Senate over the final shape of the budget bill.