Scott Waldman in Capital New York reports that federal regulators say the proposed transmission project on the Hudson River from Canada to New York City can be exempt from rules regulating the state's energy markets. The Federal Energy Regulatory Commission reversed a November determination from the state's independent grid operator saying that the project was not exempt from the rules regulating the energy markets. Albany-based Tranmission Developers Inc. (T.D.I.) appealed, asking the feds for an exemption. The proposed 333-mile transmission line would bring Canadian hydropower to New York City, and spokesman Sean Klimczack says the project now has received final state and federal permits needed to begin construction, but no starting date has been announced for constructing the $2.2 billion project. Read the full story in Capital New York.