Saturday, May 17, 2014


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US Court of Appeals issues scheduling order in capacity zone case

NEW YORK – The US Court of Appeals for the Second Circuit issued an order on Thursday setting the procedural schedule for the Federal Energy Regulatory Commission to respond to a suit filed by Central Hudson Gas and Electric Corporation seeking to stay the implementation of a new capacity zone as well as act on earlier petitions.

The court will hear the motions and petitions on June 3 in New York.

Central Hudson President James Laurito called the announcement “encouraging news.” While he said they cannot predict the outcome, they are hopeful the court will issue a stay on the capacity zone or call further auctions before the next one takes place on June 9.

“A favorable decision has the potential to save our customers millions of dollars,” Laurito said.

A new electricity capacity zone was implemented by FERC on May 1. Central Hudson filed motions with the US Court of Appeals seeking a stay on further capacity auctions under the new zone and calling for the court to order FERC to act on previously filed petitions requesting moderation or elimination of the new capacity zone.

A Similar suit was filed by the state Public Service Commission.

Congressman Sean Patrick Maloney (D, NY18), is one opposed to the zones.

“We are working very hard to reverse these hikes by whatever means necessary meaning we have a litigation strategy, we have a legal strategy, and we have a public pressure strategy and it’s just outrageous that these federal bureaucrats to get the message that this is a dumb idea, it has no public support, it is a solution in search of a problem, and it should be stopped, and we are going to keep at it until we get these hikes reversed,” Maloney said.

New York Affordable Reliable Electricity Alliance supports the zone.

“The new capacity zone will provide many economic benefits to the Hudson Valley,” said Paul Steidler, the organization’s communications director. “It will be a catalyst for strengthening the region’s energy infrastructure, creating construction and long-term jobs, and improving electric reliability for years to come.”