Energy and Water Development and Related Agencies Appropriations Act, 2015

Floor Speech

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Mr. SEAN PATRICK MALONEY of New York. I would like to thank the chairman and the ranking member for working with me on this issue.

Mr. Chairman, in January, the Federal Energy Regulatory Commission, known as FERC, approved a proposal by the New York Independent System Operator to create a new capacity zone in the Hudson Valley. The committee report accompanying the fiscal year 2015 Energy and Water Appropriations bill acknowledges that zones like this one may result in increases in consumer energy costs.

In the case of the Hudson Valley, this new zone would impose an unprecedented $230 million increase in energy costs for our region in just the first year and nearly $500 million in increased costs over a 3-year period. Initial estimates suggest that customers throughout the Hudson Valley could see their utility bills go up by 3 to 10 percent.

Not only did FERC approve this new zone, but they have completely disregarded ratepayers and local officials in this decision. They have consistently ignored local stakeholders' warnings that this zone will arbitrarily hurt families and businesses.

Moreover, they have failed to demonstrate that the zone would even achieve the result that they are seeking. FERC has also failed to take into account a wide range of ongoing investments that will facilitate the movement of energy in New York State and which may reduce or eliminate the need for such high-capacity payments.

Would the chairman and the ranking member agree that it is the intent of the report language to ensure that FERC reexamines and reforms the way they conduct this type of decisionmaking, so that the proceedings ensure the Commissioners hear and consider the concerns of local ratepayers?

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Mr. SEAN PATRICK MALONEY of New York. I want to thank the chairman and the ranking member.

Would you also be committed to continuing to work with me during fiscal year 2015 to ensure that FERC makes reforms to ensure that the views of residents, local and State officials, regulators, and business leaders are taken into account when FERC makes these major decisions?

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