April 14, 2022
For Immediate Release
April 14, 2022
Contact
Chris Singleton (TDI), chris@risaheller.com
Gary Sutherland (Hydro-Québec), sutherland.gary@hydroquebec.com
CHAMPLAIN HUDSON POWER EXPRESS APPROVED BY NEW YORK STATE PUBLIC SERVICE COMMISSION
Contract Approved; Construction to Begin on Transmission Line Bringing 1,250 MW of Clean, Renewable, Affordable Energy to NYC
CHPE Approval Follows Extensive Project Support from Environmental Advocates, Local Community Leaders, Organized Labor, and Elected Officials Across NYS
CHPE Will Reduce NYC’s Current 90% Dependence on Fossil Fuels For Electricity Generation by 25%; Cut Air Pollutant Equivalent of 15 of NYC’s 16 Peakers
New York, NY – Today, the New York State Energy Research and Development Authority’s (NYSERDA) Tier 4 contract with Hydro-Québec for the Champlain Hudson Power Express (CHPE) was approved by the New York State Public Service Commission (PSC) – a critical authorization required for the project which will begin delivering 1,250 megawatts of clean and renewable hydropower to New York City (NYC) by 2025.
Today’s announcement follows a year-long process that included a Request for Proposals (RFP) and selection process by NYSERDA followed by an extensive PSC review process and public comment period, during which close to 4,000 statements were filed in support of CHPE – including from advocates across organized labor groups, environmental organizations, higher education institutions, major business and real estate companies, and more. Transmission Developers Inc. (TDI) looks forward to reviewing the full order released by the PSC in the coming days.
Summary of project benefits:
“Today’s vote is a win for New York and moves forward a project that will create thousands of in-state jobs, reduce harmful pollutants, and invest nearly $189 million in protecting our environment, our neighborhoods, and our planet – all while delivering renewable, reliable, power,” said Transmission Developers CEO Donald Jessome. “It is also a testament to forward-looking public officials who put forward bold clean energy targets and community leaders, environmental advocates, business and labor leaders, academics, and New Yorkers who studied the project and voiced their support for it – the PSC clearly heard and considered all these voices.”
“We want to thank the PSC commissioners for their diligent review of the contract and thorough consideration of the broad public input during the process,” said Hydro-Quebec CEO Sophie Brochu. “This decision has New York State and Québec taking one giant step together towards climate progress with a project that is a model for equitable clean energy infrastructure that makes sense for ratepayers and the communities it has the privilege to serve.”
“We are excited to see this critical project move forward – it will help support the transition to a more sustainable future and create new clean energy jobs,” said Blackstone Senior Managing Director Bilal Khan. “We appreciate the support of numerous public officials, community groups and other stakeholders throughout this decade-long process to bring clean, renewable power to New York City.”
As a result of the PSC’s decision, the Mohawk Council of Kahnawà:ke, an Indigenous community located south of Montréal, and Hydro-Québec will finalize their shared ownership agreement of the transmission line in the province of Québec, which will connect to the CHPE. This agreement will secure economic benefits for the community over a 40-year period.
“The Champlain Hudson Power Express is a game-changer,” said Mohawk Council Grand Chief Kahsennenhawe Sky-Deer. “We will continue our responsibility as stewards of the environment to always protect our Mother Earth, especially from the dangers of climate change and global warming. But we are also ensuring Indigenous people have a seat at the table as business partners, and have a voice in the overall economy moving forward.”
Once CHPE begins to deliver its 1,250 megawatts of clean energy – enough to power over one million New York homes – New Yorkers will start to benefit from direct positive health impacts related to reducing fossil fuel generation and harmful pollutants. This reduction in pollutants will result in cleaner air, fewer episodes of illness and lower health care costs for residents, particularly in disadvantaged communities adjacent to New York City’s fossil-fuel peaker plants.
CHPE will also provide affordable power that will lower electricity generation costs throughout the state by over $17 billion over the first 25 years of operation, all the while providing increased reliability and resiliency for the downstate grid. The project also provides a total of $3.5 billion in economic benefits to New Yorkers while creating approximately 1,400 family-sustaining jobs during construction. CHPE will provide an economic boost to 73 municipalities and 59 school districts throughout New York State with an increase in incremental tax revenue of $1.4 billion in funding for local communities over the first 25 years of the project.
In June 2021, CHPE announced a $40 million Green Economy Fund (GEF), designed to support residents living in underserved and frontline communities, as well as those transitioning from the fossil-fuel industry, by providing them with new job training opportunities that will help them participate in and benefit from New York’s emerging green economy.
CHPE has also established a $117 million environmental trust fund to finance projects that improve and enhance the aquatic environments in Lake Champlain, the Hudson River, the Bronx, Harlem and East Rivers, and New York Harbor. In December 2021, the independent committee responsible for distributing the funding over the next three decades voted unanimously to unlock $12 million dollars ahead of schedule. The committee is expected to begin providing funding to local environmental and advocacy groups’ projects later this year.
About the Champlain Hudson Power Express
CHPE involves the construction of an underground and underwater transmission line spanning approximately 339 miles between the Canada–U.S. border and New York City.
The permitted CHPE is estimated to create more than 1,400 jobs during construction, with a commitment to use union labor.
About Hydro-Québec
Hydro-Québec is the largest renewable energy producer in North America. For decades, the company has been a reliable energy partner for New York, providing clean power to the State in support of its clean energy and reliability needs.
About Transmission Developers Inc.
Transmission Developers Inc., a Blackstone portfolio company, has spent a decade meticulously developing with local stakeholders the N.Y. portion of the project and its 339-mile route. The solid-state buried cable will travel a route through Lake Champlain, the Hudson and Harlem Rivers and terrestrially on railroad rights of way and roads until it reaches a converter station in Astoria, Queens where its clean energy will be distributed into New York City.