Regulator to Expedite Controversial Power Plant Vote

A proposal to fire up the defunct Danskammer power plant in Newburgh has drawn scrutiny from competitors, environmentalists and even the New York Attorney General’s office. And yet, there will be no public discussion on the matter when the Public Service Commission takes up the project at a hearing this morning.

Instead, commissioners will simply vote on the project. The proposal will be one of more than two dozen items on today’s consent agenda, which includes rate decisions, appeals and other technical measures that the state utility regulator believes do not require any open debate.

“Consent items are issues that can be decided by the Commission based on written reviews and analyses previously made available to the Commissioners and do not require discussion at the Session,” a PSC spokesman said in a brief email. “An item placed on the consent agenda indicates that the Commission is prepared to vote.”

However, several sources privately raised concerns about the procedural maneuver, which could allow commissioners to duck public debate on a controversial issue. The PSC spokesman did not specifically address the Danskammer project.

The request before the PSC is for the expedited approval of the lease, sale and operation of the Danskammer plant, which is located in Orange County in the Hudson River valley.

The power plant was severely damaged during Superstorm Sandy and sold on the assumption that it would be scrapped. However, the Federal Energy Regulatory Commission’s subsequent creation of a Hudson Valley capacity zone that could raise rates and spur more power generation prompted the owners to develop a repowering plan.

That decision has frustrated companies like NRG Energy, which assumed Danskammer would stay offline as it took steps to repower its own nearby facility. Another power producer, Entergy, has argued that regulatory issues still need to be addressed since the facility transferred ownership under a simpler process when there were no plans to use it again.

Environmentalists have raised concerns about emissions from the old coal-powered facility. The owners have said they have “no intention” of burning coal if they repower the plant and will rely instead on cleaner natural gas, but environmental groups like Riverkeeper remain unconvinced.

The Attorney General’s office submitted comments earlier this month raising a number of issues with the companies’ application, including the lack of a State Environmental Quality Review Act or Department of Environmental Conservation review, incomplete information in the application and questions about compliance with environmental laws.

The plant is a joint project of Helios Power Capital, Danskammer Energy and Mercuria Energy America. Efforts to reach Helios Power Capital were unsuccessful.

Any item on the PSC's consent agenda can be transferred to the regular agenda “if discussion is required,” but even then the public is not allowed to address the commission. The commission does take public comments, which it posts on its web site.