New York State PSC approves up to $6B for Champlain Hudson transmission line
A 339-mile direct current transmission line running from Canada to New York gained a green light from the New York State Public Service Commission (PSC) last week to acquire up to $6 billion in private financing and to utilize the rights granted it under previous municipal approvals.
The Champlain Hudson Power Express Project is a high voltage project under development by CHPE LLC and CHPE Properties, Inc. Previously, those involved were authorized to borrow up to $4.5 billion for the project, but recently sought permission to reach the new, $6 billion limit. This will not affect ratepayers, only the developers, according to the PSC. Helping the situation is the New York State Energy Research and Development Authority (NYSERDA), which will purchase renewable energy credits for power delivered through the line – but increased authorized indebtedness will not alter prices established by the NYSERDA contract, either.
“By encouraging the development of environmentally acceptable projects that reinforce the backbone of our energy system, New York is helping ensure a clean energy future,” Commission Chair Rory Christian said. “In addition to ensuring the safety and reliability of the transmission system, the Champlain Hudson project, and others being developed, will play a key role in our comprehensive plan to modernize our state’s transmission system so that it delivers clean energy to all New Yorkers, while advancing our climate goals and creating clean-energy jobs.”
The PSC first authorized the Champlain Hudson developers to proceed in 2013, after determining that the project would serve the public interest, convenience and necessity, while reducing any adverse environmental impacts. Even now, numerous groups have come out in support of the revised permissions granted to the project to keep it going, including local municipalities and school districts, who cited the potential long-term financial benefits and cooperative nature of the developers.
While the Commission has concluded that environmental concerns have been addressed for the project, some other groups have opposed the project as a whole as potentially damaging to the Hudson River and under-beneficial for those involved.
