Controversial power plant is denied key permit

ALBANY, N.Y. » State environmental regulators have denied a key permit for a $900 million power plant being built in Orange County.

The Department of Environmental Conservation filed a decision Thursday with the Federal Energy Regulatory Commission saying the environmental review of the 7.8-mile natural gas pipeline to the plant was deficient.

The Millennium Pipeline Company project would supply gas for Competitive Power Venture’s 650-megawatt Valley Energy Center in Wawayanda. The plant is due to go online next year.

Environmental activists targeted the pipeline as a way to stop the power plant. FERC’s approval was contingent on the state approving permits.

Competitive Power Ventures, based in Silver Spring, Md., called the state’s action “without merit” and said it’s confident the pipeline ultimately will be approved.

The Federal Energy Regulatory Commission has ruled the Lower Hudson Valley an energy-short area and imposed a rule intended to spur development of local generating capacity.

The “capacity zone,” which includes Central Hudson Gas & Electric Corp.’s coverage area, as well as New York City and Westchester County, was implemented on May 1, 2014, and requires the area’s utilities to buy at least 88 percent of their electrical capacity above actual demand from within the zone.

Central Hudson has said the rule has led to electric bill increases of 6 percent for residential customers and 10 percent for business customers. The state Public Service Commission contends the increase for residential customers could be as much as 13 percent.

Attorney Michael Sussman, who is representing opponents of the plant, said on Thursday, “We may actually stop the plant from every opening and polluting our valley if we can make this stick in court.”

He said all of the efforts “will have succeeded and we will have taken a major step forward.”

Pramilla Malick, chairwoman of Protect Orange County, said the state agency’s decision “is a validation of people power and the law.” She noted the 6,000 substantive comments submitted in opposition to its approval. “Many focused on the failure of any analysis of the greenhouse gas impacts an approval would effect.” She noted 10,000 people also signed a petition asking Gov. Andrew Cuomo to reject the permit.

“People should never surrender to the notion that something is a ‘done deal’. Enormous credit goes to the thousands of people who have been calling and tweeting the governor and the Department of Environmental Conservation.”

Malick, actor James Cromwell and fellow plant opponent Madeline Shaw recently served brief sentences in the Orange County Jail for blocking traffic during a protest at the plant site. They were sentenced to a week in the jail but were released after less than three days.

Malick said plant opponents should “call on Gov. Cuomo to demonstrate continued bold leadership now and to rescind the permits for the [plant] ... We also urge the Department of Environmental Conservation to be consistent and reject the Eastern System Upgrade permits on the same grounds. A decision on that project was also expected yesterday and we are eagerly awaiting its rejection.”

Orange County Executive Steven Neuhaus last year

directed the county attorney to oppose Millennium Pipeline’s taking of county land through eminent domain because Millennium did not have their state permits in order.

State Assemblyman James Skoufis, D-Woodbury, applauded the state agency’s decision.

“CPV has previously threatened to burn oil at

the plant in order to begin production if they did not receive their Millennium Pipeline connection. This would be an in-your-face circumvention of [Thursday’s] DEC decision.”

Skoufis said he will introduce legislation in an attempt to block Competitive Power Venture’s “flagrant efforts to skirt the permitting process.” He said the electric generating plant “should not become operational while the project remains under a cloud of corruption.”