Feds approve controversial power corridor

Mid-Atlantic Area National Interest Electric Transmission Corridor WASHINGTON — Federal officials Tuesday finalized designation of two controversial “National Interest Electric Transmission Corridors” (National Corridors) -- the Mid-Atlantic Area National Interest Electric Transmission Corridor, and the Southwest Area National Interest Electric Transmission Corridor. Canadian power developers have been awaiting the federal approval to supercede almost unanimous New York and Pennsylvania state and local objections to a powerline that could run through federally designated park areas in New York and northern Pike County. See the corridor map at http://www.energy.gov/media/MidAtlantic_Corridor_Map091707.pdf Pennsylvania Governor Ed Rendell voiced his disappointment. “From day one, we argued that any determination should reflect a specific need for additional transmission capacity, and we challenged the federal government to show us an instance where the Public Utility Commission refused a proposed transmission project. Since DOE failed to demonstrate either, we see no reason why this designation should be finalized.” Pennsylvania Public Utilities Commission Chairman Wendell F. Holland issued statement in opposition to the designation. “I am saddened that the Department of Energy has chosen to ignore the input from the affected states in making their final decision on this very important issue,” said Holland. “This determination has the potential to strip the decision-making power from local officials who are charged with serving Pennsylvanians and putting it in the hands of federal regulators.” “A designation that stands to place unbounded authority in the hands of the federal government and takes away the rights of states to make choices that will be in the best interest of their citizens troubles me,” said Commissioner Tyrone J. Christy. “I believe that this decision may lead to undue federal involvement with state transmission siting proceedings that may or may not have fully considered the best interests of Pennsylvania citizens.” The announcement came from U.S. Department of Energy (DOE) Assistant Secretary for Electricity Delivery and Energy Reliability, Kevin M. Kolevar. It said these corridors include areas in two of the nation’s most populous regions with growing electricity congestion problems. The department based its designations on data and analysis, showing that persistent transmission congestion exists in these two areas. Further, in issuing these designations, DOE is carrying out its responsibilities under Federal Power Act section 216, as enacted in the Energy Policy Act of 2005 (EPAct). That law authorized the Secretary of Energy to conduct periodic national electric transmission congestion studies (Congestion Study), and to designate National Corridors if the Secretary determines it appropriate. “These National Corridors serve as an important indication by the federal government that significant transmission constraint or congestion problems exist,” Secretary of Energy Samuel W. Bodman said. “The goal is simple n to keep reliable supplies of electric energy flowing to all Americans. By designating these National Corridors, we are encouraging stakeholders in these regions to identify solutions and take prompt action.” DOE has made each National Corridor designation effective for twelve years. The Mid-Atlantic Area National Corridor includes certain counties in Ohio, West Virginia, Pennsylvania, New York, Maryland, Virginia, and all of New Jersey, Delaware, and the District of Columbia. The Southwest Area National Corridor includes certain counties in California and Arizona. The statement insists that “designations do not direct the construction of any new transmission facilities, they do not decide whether or where any new electric transmission facilities should be built, and they do not approve or disapprove the construction of any particular proposed new facilities.” The Energy Policy Act of 2005 authorizes the Federal Energy Regulatory Commission (FERC) to issue, under certain circumstances, permits for new transmission facilities within a National Corridor. Generally, if an applicant does not receive approval from a State to site a proposed new transmission project in a National Corridor within a year, FERC may consider whether to issue a permit and to authorize construction of the project. However, FERC does not have the ability to authorize or order construction of transmission lines over State or federal property within the National Corridors without the consent of the relevant land management agency. What that means to “designated” areas such as the Upper Delaware is not known. In 2006, FERC issued regulations that stipulate that only those transmission projects that would significantly reduce congestion into or within the congestion area would be eligible.