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Saugerties Post Star
  • Central Hudson Files Brief in Federal Court to Appeal FERC Capacity Zone Decision  

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  • (New York, NY) Central Hudson Gas & Electric Corporation filed a joint Initial Brief on Appeal yesterday with the United States Court of Appeals, challenging the Federal Energy Regulatory Commission’s (FERC) decision to deny cancellation or phase-in of a new capacity zone in the lower Hudson Valley. Joining Central Hudson in its appeal are the New York Power Authority, New York State Electric & Gas and Rochester Gas and Electric. The New York State Public Service Commission also filed a separate brief.
    We filed this appeal because the new capacity zone increases electricity costs to our customers without a corresponding benefit,” said James P. Laurito, President of Central Hudson. “The new capacity zone was formed to address potential energy shortfalls in lower New York by sending a price signal to developers to encourage construction of new generators in the region. However, these higher prices benefit existing generators at the expense of our customers, and development of new generation will likely lag considerably, if at all. Electric transmission development is a far better solution, as this will alleviate power concerns without the high cost of a new capacity zone,” he said.
    The new capacity zone was implemented on May 1, 2014. As a result, capacity prices in the lower Hudson Valley rose by approximately $20 million per month in May and June, and for Central Hudson customers by approximately $4 million in each of the same months.
    The utilities’ brief urges the court to order FERC to revisit and revise their decisions relating to pricing in the new capacity zone, termination of the new capacity zone and to compensate customers for the higher resulting electric supply costs. The court has set an accelerated schedule for the appeal with Response Briefs due on August 1 and Reply Briefs on August 18.
    For more information, visit www.CentralHudson.com/EnergySolutions.
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