NYPA petitions FERC to reconsider order

The New York Power Authority (NYPA) is attempting to block a Federal Energy Regulatory Commission (FERC) order that it fears will increase electricity costs by up to $500 million in 2013.

NYPA, along with New York City, filed a petition Oct. 11, asking for a rehearing of a September order by the FERC to revisit a market pricing test of a Queens power plant.

FERC waded into the pricing market set by the New York Independent System Operator (NYISO) after a complaint from the Astoria Energy II power plant in Queens that has been in operation for more than a year.

In 2010, NYISO performed a test to determine if a proposed new generator was likely to receive electric market revenues that equal or exceed its expected costs. Astoria Energy II passed the test and was cleared to move forward.

After complaints by Astoria Generating Co. and TransCanada, FERC is asking NYISO to conduct another test with modifications, that NYPA claims will cause Astoria Energy II to fail the test, and force the power plant to increase its offer price, restricting it from the New York electric capacity market.

NYPA said that this will lead to major price increases and harm consumers.

“The FERC order results in the unwarranted transfer of wealth from local and state governments and consumers to existing power planet owners,” Gil Quiniones, NYPA President and CEO, said in a press release.