WASHINGTON – The Federal Regulatory Commission has denied the request by New York Regional Interconnection for reconsideration of the agency’s prior decisions that would effectively prevent NYRI from tapping ratepayer subsidies for its power line proposal.

NYRI wanted to construct a power line from Oneida County to Orange County.

Congressman Maurice Hinchey was among those leading the charge to keep the line from being built. He lauded the FERC decision.

Hinchey, along with U.S. Reps. Michael A. Arcuri (D-NY) and John Hall (D-NY), had written to the federal agency in July expressing strong opposition to NYRI's rehearing request and reiterating their opposition to the project.

“This is the latest in a string of setbacks that NYRI has faced in its failed bid to construct massive power lines across New York state," Hinchey said. "NYRI submitted its rehearing request to FERC earlier this year, trying once again to pave the way for ratepayer subsidies for its project.  FERC's unequivocal rejection of NYRI's position and repudiation of NYRI's arguments finally close the door on the possibility of ratepayer subsidies for this project.  Since the project sponsors themselves have stated that the project is not viable without such subsidies, FERC's decision represents what appears to be the final nail in the coffin of this ill-conceived project."

In its "Order on Rehearing and Motion" dated October 15, 2009, FERC denied NYRI's request for rehearing of the agency's March 31, 2009 Order that effectively blocked NYRI from tapping ratepayer subsidies for its power line.

NYRI had appealed the FERC ruling that refused to overturn the New York Independent System Operator's (NYISO) provisions for granting ratepayer subsidies for electricity transmission projects. The NYISO voting provisions, which were upheld by FERC, effectively prevent NYRI from gaining ratepayer subsidies for its power line proposal. 

The company suspended its pending application with the New York Public Service Commission following FERC's decision, indicating that without access to ratepayer subsidies, the NYRI project would not be economically viable.