New York Regional Interconnect Inc. (NYRI) has petitioned the New York Public Service Commission (PSC) for a declaratory ruling to clarify the applicability of state legislation on the authority of the PSC to site transmission line projects.

The petition is a continuation of a series of regulatory, legal and legislative actions that began in May 2006 when NYRI filed a proposal with the PSC under Article VII to construct a 190-mile-long high-voltage direct-current electric transmission line that would help relieve existing transmission constraints and allow additional power to move from upstate New York where energy is abundant to areas downstate with high-energy demand.

On June 23, 2006, New York State passed section 11(7) of the Transportations Corporations Law ("2006 TCL Law"). The law appeared to take away the use of eminent domain from certain transmission power line projects even if those projects are certified by the PSC under its Article VII process -- New York State's traditional regulatory process for siting power lines.

On Feb. 1, 2007, NYRI filed an action in Federal District Court seeking a declaration that the 2006 TCL Law was unconstitutional. On Oct. 26, 2007, NYRI's action was dismissed by the Federal District Court on the grounds that the defendants were immune from suit in Federal Court. Because the Federal Court's decision was based on procedural grounds and did not address the merits of the case, its decision does not preclude review and clarification by other bodies of the substantive issues regarding NYRI's claim.

The petition by NYRI asks the PSC to clarify whether the Commission continues to hold siting authority for NYRI's project and to determine whether the granting of a certificate by the PSC would allow NYRI to use eminent domain in those few instances where such use may be necessary.

NYRI's petition makes the case that the PSC should rule either that the 2006 TCL Law does not apply to NYRI and its project, or the law is in violation of multiple clauses of the United States Constitution.

"NYRI believes in New York State's regulatory process and only asks that its project be judged by the PSC on its merits," said Len Singer, NYRI legal counsel, from the Albany law firm, Couch White, LLC. "However, we are seeking to determine if the 2006 TCL law has effectively taken away the PSC's authority to site this transmission line."

Supplemental Filing

In response to its original filing with the PSC in 2006, the PSC requested additional information from NYRI, and NYRI agreed to provide even more information than the PSC requested. NYRI anticipates submitting its Supplemental Filing on the proposed project to the PSC in the coming weeks.

NYRI's Supplemental Filing will address a number of issues, including: 

• Studies of alternative routing options, including selective  undergrounding, taking into consideration local routing concerns. 
• Environmental and economic impacts of the proposed transmission line. 
• Projections of improved reliability of the state transmission system,  contribution to the development of renewable energy sources and reduced  carbon emissions in the state. 
• Impact on reducing wholesale electricity rates throughout the state.