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Central Hudson, PSC sue over ‘capacity zone’

May 16, 2014 6:15 am
William J. Kemble is reporting in the Daily Freeman Central Hudson Gas & Electric Corp. and the state Public Service Commission have filed lawsuits asking the Federal Energy Regulatory Commission respond to requests for new hearings over restrictions about where utilities purchase electricity. The filings assert that federal energy officials failed to respond to previous petitions asking the new capacity zone rules either be delayed or phased in over a three-year period. In the new local capacity zone utilities will be required to buy at least 88 percent of their capacity from electricity producers within the zone. The Mid-Hudson Valley has been placed in the same zone as Westchester County and New York City. Federal regulators are encouraging existing electric producers to charge higher rates as a way to entice other producers to establish new power plants in the area. Central Hudson has estimated the implementation of the new zone could drive up electricity costs by as much as 6 percent for residential customers and 10 percent for businesses. Read the full story in the Daily Freeman.
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