FERC Denies Request For Rehearing On NYISO Capacity Zone

May 29, 2014

The Federal Energy Regulatory Commission ruled that it would not grant a full rehearing of the new capacity zone issue in the mid- and lower Hudson Valley. Both Central Hudson Gas & Electric and the New York State Public Service Commission had petitioned the U.S. Court of Appeals seeking two actions, one of which was to force FERC to answer the rehearing question. The commission’s ruling appears to make that issue moot. The other part of the petition asked the court to stay further implementation of the plan, which FERC says is needed to make Hudson zone power prices high enough to attract power companies. The petition is on the Court of Appeals calendar for arguments June 3. In a separate filing to the court, FERC opposed a stay, arguing that economic harm to consumers is neither certain nor irreparable. In its ruling, FERC did grant one part of the rehearing request on a “narrow issue”: a claim that a bulk power generator could withhold production and thus “unjustifiably raise prices.” FERC told NYISO to offer a filing on how to prevent that, a sign that it may make a modest revision to the capacity zone order.

http://www.poughkeepsiejournal.com/story/news/2014/05/27/ferc-denies-power-rehearing/9646655/