Referred to: The Laws and Rules, Governmental Services Committee (Chairman

Richard Parete and Legislators Archer, Donaldson, Roberts, and Ronk)

Legislator Manna Jo Greene and Legislators Allen, Archer, Bartels, Briggs,

Donaldson, Gregorius, Loughran, John Parete, Richard Parete, Provenzano,

Rodriguez, and Wishnick offer the following:

WHEREAS, the Federal Energy Regulatory Commission (FERC), in an order

issued on August 13, 2013, accepted the tariff revisions proposed by the New York

Independent System Operator to create a New Capacity Zone (NCZ) that groups the

Mid-Hudson Valley (electricity load zone G) in the same capacity zone as

Westchester and New York City (Zones H, I, and J); and

WHEREAS, this order is scheduled to go into effect on May 1, 2014; and

WHEREAS, the stated purpose of the NCZ is to address existing transmission

constraints by altering the price signals in wholesale energy markets to attract

investors in new plants whose Installed Capacity (ICAP) will be sufficient to meet

electricity needs in times of peak demand; and

WHEREAS, the Public Service Commission (PSC) opposes the creation of

the NCZ, stating that the order ignores PSC proceedings underway to address

transmission constraints by upgrading transmission lines; and

WHEREAS, these transmission upgrades were recommended by the

Governor’s New York State Energy Highway Blueprint, which seeks to increase the

capacity of transmission lines to carry 1,000 MW of additional lower-cost power

from the north and west to meet downstate needs, eliminating bottlenecks in

transmission; and

WHEREAS, the PSC is currently reviewing four proposals to accomplish the

task of upgrading transmission lines; and

WHEREAS, the PSC further stated on September 12, 2013, that the NCZ will

result in unjust and unreasonable electricity rates, possibly increasing rates by as

much as 25%, costing ratepayers in the new zone over half a billion dollars in a

three-year period; and

WHEREAS, Central Hudson-Fortis, a utility serving rate-payers in Zone G,

also opposes the creation of the NCZ, estimating that it will increase prices by at least

6% for residential and 11% for industrial rate-payers; and 

- Page 2 -

Resolution No. 72 February 18, 2014

Urging The Federal Energy Regulatory Commission (FERC) To

Postpone Indefinitely Its Order Issued August 13, 2013 And Halt

The Creation Of The New Capacity Zone

 WHEREAS, the NCZ will hurt many small to medium-sized industries,

including the dairy industry for whom electrical power makes up a large percentage

of its costs; and

WHEREAS, the NCZ will cause disproportionate harm to low- and fixed

income rate-payers, particularly in light of the Public Service Commission's report

that the percentage of customers in the Central Hudson service area whose electricity

has been shut off for not paying their bills has risen from 1.89% to 5.99% in 2012;

and

WHEREAS, the creation of the NCZ will unfairly burden rate-payers in

upstate counties, whose “peak” energy needs are much lower than those in

Westchester and New York City; and

WHEREAS, the express purpose of the NCZ is to create new “peaking”

capacity, which favors increased use of fossil fuel-based generation; and

WHEREAS, increasing fossil fuel generation contradicts and in no way

addresses New York State’s Renewable Portfolio Standard goal of at least 30%

renewable electricity by 2015; and

WHEREAS, the FERC has failed to adequately consider these proposed

transmission upgrades, which make the NCZ unnecessary; now, therefore, be it

RESOLVED, that the Ulster County Legislature calls upon the Federal Energy

Regulatory Commission to postpone indefinitely its order issued August 13, 2013,

which conflicts with State efforts currently underway to address the same problem of

transmission constraints; and, be it further

RESOLVED, that the Ulster County Legislature calls on United States

President Barack Obama, United States Senators Charles Schumer and Kirsten

Gillibrand, United States Representative Chris Gibson, New York State Governor

Andrew Cuomo, New York State Senators John Bonacic, William Larkin, James

Seward, and Cecilia Tkaczyk, and Assemblymen Kevin Cahill, Peter Lopez, Frank

Skartados and Claudia Tenney to intervene on behalf of Ulster County residents to

halt the creation of the NCZ; and, be it further 

- Page 3 -

Resolution No. 72 February 18, 2014

Urging The Federal Energy Regulatory Commission (FERC) To

Postpone Indefinitely Its Order Issued August 13, 2013 And Halt

The Creation Of The New Capacity Zone

 RESOLVED, that the Clerk of the Ulster County Legislature shall forward

copies of this resolution to the President of the United States, to the President of the

Senate and the Speaker of the House of Representatives of the United States

Congress, United States Congressman Chris Gibson, United States Senator Kirsten

Gillibrand and United States Senator Charles Schumer, and Federal Energy

Regulatory Commission Secretary Kimberly Bose, with a request that this resolution

be officially entered into the Congressional Record as a memorial to the Congress of

the United States of America; and, be it further

RESOLVED, that the Clerk of the Ulster County Legislature shall forward

copies of this resolution to New York State Governor Andrew Cuomo, New York

State Senators John Bonacic, William Larkin, James Seward, and Cecilia Tkaczyk,

and Assemblymen Kevin Cahill, Peter Lopez, Frank Skartados and Claudia Tenney,

Public Service Corporation Secretary Kathleen H. Burgess, Central Hudson Chief

Executive Officer/Director Steven V. Lant, Central Hudson President James P.

Laurito, American Association of Retired Persons (AARP) State Director Joan

Parrott-Fonseca, Public Utility Law Project of NY (PULP) Executive Director Gerald

Norlander, and Business Council of the State of New York President and CEO

Heather C. Briccetti,

and move its adoption.

 ADOPTED BY THE FOLLOWING VOTE:

 AYES: 20 NOES: 0

 (Absent: Legislators Archer, Donaldson and

 Fabiano)

Passed Committee: Laws and Rules, Governmental Services on February 18, 2014

FINANCIAL IMPACT:

NONE 

- Page 4 -

Resolution No. 72 February 18, 2014

Urging The Federal Energy Regulatory Commission (FERC) To

Postpone Indefinitely Its Order Issued August 13, 2013 And Halt

The Creation Of The New Capacity Zone

STATE OF NEW YORK

 ss:

COUNTY OF ULSTER

This is to certify that I, the undersigned Clerk of the Legislature of the County of Ulster have compared the

foregoing resolution with the original resolution now on file in the office of said clerk, and which was adopted by said

Legislature on the 18th Day of February, 2014, and that the same is a true and correct transcript of said resolution and of the

whole thereof.

IN WITNESS WHEREOF, I have hereunto set my hand and seal of the County of Ulster this 20th Day of

February in the year Two Thousand and Fourteen.

|s| Victoria A. Fabella

Victoria A. Fabella, Clerk

Ulster County Legislature