June 20, 2014

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US Circuit Court expedites appeal schedule for new capacity zone

NEW YORK – The US Court of Appeals has granted a motion to expedite an appeal of a May 27 FERC ruling that denied petitions by Central Hudson and others to phase in or eliminate implementation of the new capacity zone in the Mid-Hudson Valley.

The expedited schedule calls for submission of opening briefs to the court by June 27 with a final court ruling anticipated this fall.

Central Hudson is joined in its appeal by the New York Power Authority and New York State Electric and Gas. The state Public Service Commission has also filed an appeal.

The court had earlier denied a motion by Central Hudson and the PSC to suspend capacity auctions under the new capacity zone.

A new capacity zone was implemented by FERC on May 1 resulting in prices increasing by nearly $20 million in the Lower Hudson Valley in the month of May alone.

The Central Hudson customers, capacity prices were $4 million higher than the same month last year, resulting in an increase of 127 percent.

Residential customers’ bills are anticipated to rise by some six percent and for industrial customers by 10 percent without providing customer benefits.


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