FERC, NY to talk on power-cost zone

After many months of wrangling in and out of court, two agencies are ready to sit down and talk about power supply issues and what it costs mid- and lower Hudson Valley consumers.

The Federal Energy Regulatory Commission has slated a joint technical conference with the New York state Public Service Commission for Nov. 5 to discuss "New York markets and infrastructure," components of the "new capacity zone" that FERC imposed and that is adding to local power prices.

The conference is not part of the U.S. Court of Appeals case in which the Public Service Commission, or PSC, and local utilities have challenged FERC's decision. A three-judge panel has reserved decision on that, and as of Monday, had not posted a ruling.

The conference may open a path toward resolving the dispute between the state, utilities and customers on one side and FERC and generators on the other. Central Hudson Gas & Electric Corp. has estimated that the zone is costing residential payers an extra 6 percent and industrial ones an extra 10 percent. It sides with the PSC.

One local power activist, Todd Pfleger of Pleasant Valley, was encouraged to hear that the two agencies planned to sit down. "Great," he said. "At least they're communicating." He said he hoped the talks would also focus on conservation and efficiencies that would fend off power plants or transmission lines in the mid-Hudson region. Such thrusts are part of the state's Reforming the Energy Vision, or REV, he noted.

The conference is to discuss "issues of mutual interest and concern regarding the installed capacity market and energy infrastructure in New York," a FERC notice said.

The Public Service Commission notice said the talks will "provide an opportunity to review the role of New York's centralized capacity market in attracting investment and ensuring resource adequacy and reliability."

FERC's move, hotly contested, was to encourage new power generation in a region planners believe to be short of a reliable future power supply.

Their method was to alter formulas used in setting prices in the bidding market that is run by the New York Independent System Operator, which also manages the grid. The higher prices are supposed to attract private generating company interest in retaining and adding power plants to bolster the supply. Those higher bulk prices paid to generators work their way through to the individual customer's bill.

The notice came two days after the most recent blast from the legislative branch of federal government directed at FERC. U.S. Rep. Sean Patrick Maloney, a Democrat from Cold Spring, joined by Rep. Chris Gibson, a Republican from Kinderhook, wrote to FERC calling on it to change its stance.

"I've heard loud and clear from my neighbors that they just can't afford these hikes headed into winter. FERC needs to reverse their decision and refund those who have already been hurt by this recklessness," Maloney said Monday in a statement.

A bill passed the House of Representatives in July that would forbid FERC from spending money to enforce the zone.

Max Dworin, spokesman for Sen. Charles Schumer, said the senator "has indicated he will be introducing the Senate version soon."

Craig Wolf: 845-437-4815; cwolf@poughkeepsie

journal.com; Twitter: @craigwolfPJ