The fourth proposal, submitted by Boundless Energy, would pass through the existing power transmission right-of-way in Ulster. It was touted by some at the meeting as less invasive, replacing old steel-core cables with lighter-weight, higher-capacity carbon-fiber wires but not requiring new towers.
Tom Rumsey of ISO, a not-for-profit, non-governmental agency tasked with oversight of the “reliable operation of the grid,” explained that New York State has hitherto been split into three Capacity Zones: New York City, Long Island and the rest of the state. Each zone is expected to generate a certain minimum percentage of the power that it consumes, and the rates charged to consumers of electricity — “locational pricing” — are partially calculated based on how much excess power needs to be imported into the zone. By creating a New Capacity Zone just for the mid- and lower Hudson Valley, the ISO reasoned, financial incentives would be created for the area to maximize local power generation and address local infrastructure problems that drive up the costs of transmission.
The down side of that argument, Rumsey admitted, was that, in the short term at least, electric rates in the mid-Hudson would skyrocket. But the pricetag would go down, he said, once the state’s parallel plan to upgrade transmission lines and alleviate the bottleneck was completed. He estimated the total cost to acquire the needed additional capacity at $243 million per year during the startup period.
John Maserjian of Central Hudson/Fortis projected an initial ten percent increase in residential electric bills, but said, “We’re working together to find ways to mitigate that.” One possible way of increasing local supply of power would be to restart the currently mothballed Danskammer coal-fired plant at times of peak demand, according to another Central Hudson/Fortis representative, Paul Haering, while Rumsey mentioned the biomass project currently being proposed for a site in Montgomery in Orange County. “Those megawatts will count,” he said.
Although the creation of the New Capacity Zone appears to be a “done deal,” FERC is at this writing still considering ISO’s request to cushion the blow of the rate hikes by phasing it in over a three-year process instead of all at once effective May 1. And PSC representative James Denn said that the state agency would “consider new concepts that could minimize impacts on landowners and the environment” when it meets on Feb. 20 to consider the four applications for transmission upgrade projects.
Given their chance to respond, many local residents urged greater emphasis on reduction in demand, increased reliance on renewable power sources like solar arrays and the establishment of “microgrids” to keep both power generation and consumption more local. Denn promised that “Microgrids are on the table,” but noted, “To make renewables competitive, you have to make them large-scale…. We want to make sure the lights stay on. This is a reliability issue.”
Denn pointed out that the administrative law judge who is overseeing application process for the infrastructure upgrades, under Article VII of the New York Public Service Law, would be “looking for groups who can bring information to the record.” Groups representing interested citizens and consumers could become eligible for intervenor funding that has been set aside by the state to pay for the costs of legal and engineering consultants, but must make an official request for “party status” by registering online at www.dps.my.gov/articlevii.htm.
“The New Capacity Zone [NCZ] will not only raise our electricity rates significantly, but will also encourage investment in new gas-fired power plants in our region at a time when we urgently need to ramp up investment in renewable sources,” Metzger observed following the forum. “This is taking us in the exact opposite direction from where we should be heading and at great economic cost to our communities. Both the NCZ and the transmission upgrades will involve billions of dollars of capital investments in energy infrastructure paid for by us, the ratepayers, and it is critical that our communities make our voices heard in the decision-making process.”
Metzger noted that Ulster County had “already gotten party status,” and added that Citizens for Local Power was “considering applying for intervenor funding.” More information on these issues can be obtained from CLP at (845) 658-8967.
I am moving to the Hudson Valley in the spring. It is encouraging that citizens have formed a group to get a seat at the table to discuss plans and to better understand the plan, technologies and stakeholders.
It appears that Ciitzens for Local Power can put together a plan of some example micro grids as an alternative to gas-fired power-plants.