Cuomo gives power cable idea new life

For Long Islanders pushed to the brink by electric rates among the highest in the country, Gov. Andrew M. Cuomo's State of the State speech last week offered a rare but little-noted ray of hope.

In it, Cuomo spoke of building a new "energy highway" that would connect the power-constrained downstate region, including Long Island, to cheaper power sources upstate, and as far away as Canada.

Likening the project to the construction of the New York State Thruway, Cuomo said the new line would "bring excess fossil-fuel energy from Western New York downstate, and also tap into upstate's potential for renewable energy, like wind power."

The proposal would address a bottleneck that experts say has kept rates high on Long Island and in New York City, although Cuomo in his speech was careful not to promise lower rates.

"Absolutely it has the potential for lowering some energy costs downstate," said LIPA president and chief operating officer Michael Hervey. "Everybody acknowledges that it needs to happen. I was very happy to see that in the governor's plan."

LIPA has already been in contact with Cuomo's office on the plan, and expects to include the potential for the power in upcoming reviews of new projects.

Past proposals for such a power line resulted in long-term studies but few results, but this time Cuomo promises an action plan, with a formal bidding process to start this year.

"We will issue requests for proposals to implement a master plan to power our needs for the next half-century," Cuomo pledged. He said private companies would "finance and build $2 billion in infrastructure to complete the system and build the capacity to supply New Yorkers."

One energy expert said private industry would flock to the plan, particularly with state backing and Cuomo's endorsement.

"They'd have no trouble in getting private money behind this," said former energy executive Matthew Cordaro, who noted the only past hang-up was difficulty in getting permits and licenses to run the high-power cables. "With the state getting behind it, you minimize opposition," he said. He sees most potential in Canadian hydropower, which he said is plentiful but has lacked access to downstate.

Former New York Power Authority chief Richard Kessel once envisioned a power line that used the Thruway rights-of-way. And former Long Island Power Authority chief Kevin Law proposed a power line from Canada through upstate that met Long Island at the Port Jefferson power station. Costs, licensing complications and lack of political will left each on the drawing board.

LIPA is reviewing 45 different projects to supply up to 2,500 megawatts of capacity -- just under half the peak power needs of Long Island. Hervey said the governor's plan would provide a significant new resource of supply.

LIPA also is considering whether to renew a long-term power contract with National Grid, which operates 17 local power generators, including the largest in Northport and Port Jefferson. Two other big steam plants -- at Far Rockaway and Glenwood Landing -- are scheduled to be retired in the summer, which would cut LIPA's costs.

Hervey said he believes even 300 megawatts of new power to Long Island from such a cable would make a significant dent in LIPA's future energy demands, which envision the need for a new plant in the next few years.

Joshua Vlasto, a Cuomo spokesman, said the governor's aim is to create jobs, upgrade the infrastructure to "21st century technology," and address the power needs of downstate.

In some ways, the Cuomo proposal mirrors a project that is already in the works. The $2 billion Champlain-Hudson Power Express project envisions a 330-mile cable under Lake Champlain, the Hudson River and railroad beds, connecting Canada to upstate New York and then to downstate. Its developers at Transmission Development Inc. project it to be in place by 2016.

But the 1,000 megawatts of power that cable is scheduled to deliver won't reach Long Island. It would feed exclusively into New York City.

Donald Jessome said his company believes its two-cable system would "complement" what Cuomo envisions, not replace it. "We hope our project can be part of the overall solution," he said.

Local political support

One local lawmaker who hailed the Cuomo move was state Assemb. Al Graf (R-Holbrook), who introduced legislation last year that would change laws to allow LIPA to access cheap hydropower from a state-owned Niagara facility. Cuomo, in his speech, said his plan for the line would not impinge on western New York's closely guarded allotment of cheap hydropower.

"It's great that we have a governor who, when a common-sense issue is brought to his attention, he's not afraid to act on it," Graf said.