Albany, N.Y., June 29, 2012 — New York's transmission owners responded to New York's Energy Highway Task Force Request for Information.
The NYTO response supports the findings outlined in the NYTOs' previously issued Statewide Transmission Assessment and Reliability Study Phase II report and recommends the formation of a public-private partnership to jointly develop and own transmission facilities in New York State.
The proposed partnership anticipates the creation of the New York Transmission Co. (N.Y. Transco). The N.Y. Transco would pursue the development, construction and ownership of new transmission projects that will enhance the current capabilities of the bulk power system within New York.
The STARS report was prepared by the NYTOs, with assistance by New York Independent System Operator, and released in late April as a blueprint for projects to improve the state's bulk transmission system. The NYTOs include Central Hudson, Con Edison, the Long Island Power Authority, National Grid, the New York Power Authority, New York State Electric & Gas, Orange & Rockland Utilities and Rochester Gas and Electric.
The NYTOs are proposing 18 major projects to upgrade and modernize New York State's electric power system. This investment in the state's energy infrastructure would deliver:
· Jobs for New York State
· Economic benefits by relieving transmission constraints
· Ratepayer value by leveraging existing assets
· Enhanced N.Y. electric system reliability
· Environmental benefits
· New York State economic development opportunities
· Fundable projects supported by financially-strong participants
· Transmission system capacity to support renewable generation development
· Modernization of the transmission system through the select use of advanced technology
These projects will result in an estimated total investment of $2.9 billion, of which $1.9 billion is expected to be financed through the N.Y. Transco and the remaining $1 billion financed by the host transmission owners.
Of these 18 projects, three are immediately actionable, representing an estimated investment of $385 million. The three projects would result in immediate progress toward New York's Energy Highway objectives to:
· Reduce constraints on the transmission system
· Expand the diversity of power generation
· Encourage renewable resources
· Create jobs and economic opportunities
· Contribute to an environmentally sustainable future
· Maximize customer value in the operation of the electric grid
Projects outlined in the NYTOs' response are estimated to generate more than $7 billion in economic activity in the state and create 12,000 direct and nearly 38,000 total jobs. They will also facilitate the development of renewable generation, creating an additional $4.6 billion in economic activity and 8,000 direct jobs.
The projects include about $175 million in reduced annual electric production costs, and are expected to have additional economic and public policy benefits for consumers.