Dutchess”™ county executive is joining the legal fight to stop a new pricing plan that could increase Hudson Valley electric bills by as much as 13 percent.
County Executive Marcus Molinaro, a Republican, filed an affidavit Tuesday that opposed a new electric capacity zone that went into effect May 1.
“Dutchess County residents cannot afford to bear the financial burden the new capacity zone will bring,” he said. “We will continue to make every effort to ensure (the Federal Energy Regulatory Commission) hears our concerns and addresses them.”
The New York State Public Service Commission, which regulates utilities in the state, and Dutchess County-based Central Hudson Gas & Electric Corp., filed suit against the federal commission earlier this month looking to delay, modify or cancel the zone altogether.
The capacity zone is a special-pricing plan proposed by the New York Independent System Operator, which said allowing power-generating companies to charge more to distributors like Con Edison during peak usage periods would eventually push those companies to build power plants and infrastructure in the region.
Central Hudson and other critics of the zone have said there are no guarantees the zones will spur generator development in the area and even if successful will cause a short-term burden of as much as $280 million in new costs over the next year alone. The company and others say a better solution is investing in transmitter technology that would help better distribute surplus energy from upstate down to higher-demand regions in New York City and the downstate region.
The new capacity zone is the fourth in the state, according to the PSC. The new zone affects ratepayers that are customers of Central Hudson, Con Edison in Westchester, Goshen-based NYSEG Corp. and the Orange and Rockland power company.
The capacity zone has gone into effect after a rough winter, when high demand and a spike in the cost of natural gas caused electricity bill increases of 44 percent to as much as 130 percent, according to PSC figures.
The PSC anticipates higher-than-normal prices for consumers this summer regardless of the burden of the new capacity zone, with the futures market for electricity showing a 20 percent hike over last year”™s June through September costs, the commission said.
The U.S. Court of Appeals for the Second Circuit has responded to the suits by setting a schedule for the FERC to reply later this month. The court will then hear motions and petitions June 3 at the Thurgood Marshall U.S. Courthouse in Manhattan.
