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Champlain Hudson Power Express Finalizes Contract to Deliver Clean Energy to New York City

Champlain Hudson Power Express Finalizes Contract to Deliver Clean Energy to New York City

CHPE contributes billions of dollars of overall societal benefits as part of the $7.4 billion delivered through the Tier 4 program

Creates 1,400 family-sustaining jobs, and provides $1.4 billion in tax revenue for communities throughout New York State over 25 years

Plan Delivers 1,250 Megawatts – enough clean energy to power over one million NY homes

Features $100+ million for clean water and environmental protection across NY State

New York – November 30, 2021 – Hydro-Québec and Transmission Developers (TDI) announced today that the Champlain Hudson Power Express (CHPE) has finalized and submitted its contract with the New York State Energy Research and Development Authority (NYSERDA) to deliver hydropower to New York City.

The 339-mile fully buried renewable energy transmission project will deliver 1,250 megawatts of clean hydropower to New York City to power more than one million homes. CHPE will also help significantly advance progress toward the State’s Climate Leadership and Community Protection Act (Climate Act) goals by reducing carbon emissions by 37 million metric tons statewide, the equivalent of taking over half a million cars off the road, as indicated by NYSERDA’s analysis.

“The Champlain Hudson Power Express is critical to New York’s clean energy future and will create hundreds of good union jobs throughout New York,” said Donald Jessome, CEO of Transmission Developers. “When fully operational in 2025, CHPE will deliver reliable, clean energy to meet New York City’s power needs, fight climate change and reduce harmful air pollutants. New York State and New York City decided that now was the time for big steps to bring clean air and economic opportunity to New Yorkers, and this is how it gets done.”

“We are honored to be part of New York’s bold plan to bring clean, reliable energy into New York City, which further enhances the century-long collaboration between Hydro-Québec and the state,” said Sophie Brochu, President and CEO of Hydro-Québec. “We look forward to pursuing the work to bring one of the largest decarbonization projects in North America to fruition.”

As part of its contractual agreement with NYSERDA, Hydro-Quebec will purchase electricity from the Apuiat wind farm, partially owned by Innu communities in Quebec, as well as enter into a partnership with the Mohawk Council of Kahnawà:ke for joint ownership of the line in Québec that will connect to the Champlain Hudson Power Express. These historical initiatives are examples of Hydro-Quebec’s commitment to further develop its relationships with Indigenous communities in Quebec.

CHPE will provide a dependable, 24/7, source of baseload, renewable, clean hydropower that will help phase out existing fossil fuel-burning power plants in New York City that emit harmful pollutants.

According to NYSERDA’s analysis, the Tier 4 program – including the Champlain Hudson Power Express – will deliver up to $7.4 billion in overall societal benefits throughout New York State when complete – up to $4 billion of which will be direct positive health impacts for New Yorkers. The financial value of the project’s associated health benefits will be realized via CHPE reducing fossil fuel generation and in turn harmful pollutants, meaning fewer episodes of illness and premature death, fewer days of school or work missed, less disruption of business, and lower health care costs.

The project also provides a total $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.

As part of the project, CHPE will also establish a new Green Economy Fund, which will invest $40 million towards training for clean energy jobs. The fund will focus on training for both members of underserved communities in New York as well as fossil-fuel based energy workers looking to transition to work in the renewable energy industry. The fund was created in close partnership with existing job training programs in New York State.

“We have spent the past decade developing this transformative project and are delighted to have reached this important milestone,” said Bilal Khan, Senior Managing Director of Blackstone Energy Partners. “We look forward to helping New York achieve its ambitious climate goals.”

Doreen M. Harris, President and CEO, NYSERDA said, “NYSERDA is excited to finalize its contract for the Champlain Hudson Power Express project to cost-effectively deliver a consistent source of clean energy to New York City to help enhance reliability and resiliency of the power grid. This game-changing project is part of the state’s first of its kind program that will help both the city and state transition away from fossil fuels while delivering billions in societal benefits, significant economic development investments and thousands of jobs, to all New Yorkers.”

Today’s announcement comes following a September 2021 announcement by New York Governor Kathy Hochul that CHPE was selected as one of two projects approved to move forward with contract negotiations, in response to a 2021 solicitation administered by NYSERDA for their Tier 4 program. The Tier 4 program aims to responsibly deliver a significant increase of renewable energy to New York City, an area of the state that currently relies on fossil fuel-fired generation for approximately 90 percent of its electricity.

The project was selected through a competitive procurement process on the strength of its proposal, which featured extensive stakeholder input, wide and diverse support, and substantial environmental and economic benefits for New York State and has earned the endorsement of environmental organizations, union labor, job-training organizations, and local governments. These include New York City Mayor Bill de Blasio, and former New York City Council Member Costa Constantinides, the NY League of Conservation Voters, Aaron Mair (National Wilderness Environmental Justice Leader), Citizens Campaign for the Environment, Urban Upbound, The Business Council of New York State, the Partnership for the City of New York, and 36 different local municipalities throughout New York State.

The contract has been submitted to New York State’s Public Service Commission for approval and is subject to a public comment period that will run through February 7, 2022. The petition for approval and contract itself are available on the Department of Public Service’s website under Case Number 15-E-0302, where comments can be submitted. Upon the successful completion of this process, the fully permitted CHPE project is expected to begin construction in 2022 and to begin delivering power to New York in 2025.

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. In order to source the CHPE, Hydro-Québec will expand its transmission grid in Québec, from the Hertel substation to the Québec-New York border.

About TDI

TDI (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 though 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.