Electricity Markets

N.Y. governor announces $28 mil for NYPA grid upgrade project

New York Gov. Andrew Cuomo on May 21 announced $28 million to begin work on a major new transmission upgrade project in the Mohawk Valley and Capital Region.

The project stems from a proposal submitted by LS Power Grid New York and the New York Power Authority to improve reliability and provide better access to renewable energy through a key corridor along New York's transmission system.

LS Power Grid New York's Marcy to New Scotland transmission upgrade project, of which NYPA has a minority interest, was selected by the New York Independent System Operator on April 8 in response to a competitive solicitation process calling for transmission projects along this corridor that would relieve transmission congestion and facilitate greater statewide access to renewable energy.

NYPA's Board of Trustees awarded its share of the initial funding for the project at its May 21 meeting.

"The NYPA Board of Trustees' action is another step forward in realizing New York's Clean Energy Highway," said Gil Quiniones, NYPA president and CEO. "This transmission project is part of several other vital transmission upgrades taking place across New York State. Together these projects will help ensure that energy from renewable-rich areas of Western and Northern New York will have a reliable path to consumers and help meet New York State's aggressive clean energy goals."

The project involves upgrades along approximately 100 miles of transmission lines and the construction of two new substations between NYPA's central transmission hub in Marcy, Oneida County and New Scotland, Albany County. 

The project aims to use existing electric transmission corridors. Replacing aging and outdated transmission towers -- some more than 60 years old -- with the latest technologies will enable more efficient energy flow while reducing the number of transmission structures. The funding will cover NYPA's share of the costs of permitting, licensing, engineering, property acquisition and interconnection agreements.

LS Power plans to submit an application to construct the project to the New York Public Service Commission in the second half of 2019.

Following a full review and authorization by the PSC, including numerous opportunities for additional public participation, the rebuilt transmission lines are expected to be in service by the end of 2023.