White Plains (July 28, 2020) — The New York Power Authority (NYPA) Board of Trustees today approved a measure that would provide the Authority with a 37.5% ownership stake in a project with LS Power Grid New York to rebuild a transmission line from Marcy, Oneida County, to New Scotland, Albany County. The ownership stake ensures that NYPA and LS Power both have a vested interest in the project’s success.
The effort, known as the Marcy to New Scotland Project, was selected to move forward by the New York Independent System Operator in response to a competitive solicitation process calling for transmission projects along this corridor that would help to relieve transmission congestion and facilitate greater statewide access to renewable energy. The project also represents an essential part of Governor Andrew M. Cuomo’s strategy to invest in clean energy infrastructure that helps realize the clean energy goals set forth in New York’s ambitious Climate Leadership and Community Protection Act.
NYPA worked with LS Power Grid New York in developing the initial proposal and has shared in the project’s development costs thus far. Under the terms of the parties’ agreement, NYPA is now exercising its option to take a 37.5% ownership stake in the overall project cost, estimated at approximately $750 million.
“This section of New York’s statewide transmission system has traditionally represented a bottleneck in the flow of clean energy to homes and businesses across the state,” said NYPA Chairman John R. Koelmel. “NYPA has had an interest in resolving transmission congestion in this part of the state for many years, and we’re delighted to have the opportunity to formally join forces with LS Power in addressing this congestion issue, and building a cleaner, more reliable energy grid for New York State.”
“Today’s action by NYPA’s Board of Trustees will help address a critical need in New York State by promoting access to renewable energy and rebuilding our energy infrastructure with the latest, technology available,” said Gil C. Quiniones, NYPA president and CEO. “This project is part of a long-standing vision we’ve had in New York State to build a ‘Clean Energy Highway,’ that will help transport energy from renewable-rich areas in Western and Northern New York to consumers, while simultaneously creating well-paying clean energy jobs and bolstering the state’s economy.”
“We’re excited about NYPA’s decision and will continue to work together to develop the project,” said Paul Thessen, LS Power Grid New York president. “The public/private cooperation combines all the right resources and experience to efficiently realize the electric grid improvements that are needed to drive New York’s clean energy future.”
The project involves work along approximately 100 miles of transmission lines and the construction of two new substations between NYPA’s central transmission hub in Marcy and the New Scotland substation. The project will use existing electric transmission corridors. Replacing aging and outdated transmission towers – some more than 60 years old – with the latest technologies will enable more efficient energy flow while reducing the number of transmission structures.
NYPA and LS Power Grid New York filed an application to construct the project with the New York Public Service Commission (PSC) in August 2019. Following a full review and authorization by the PSC, a process that includes numerous opportunities for public participation, the rebuilt transmission lines are expected to be in service by the end of 2023.