New York Loses Appeal to Block Millennium Natgas Pipeline

(Reuters) – A federal appeals court on Monday denied New York State’s petition to review orders from federal energy regulators that authorized Millennium Pipeline Co to build a natural gas line to a power plant in Orange County, New York.

“We certainly disagree with the decision, and are reviewing our options to determine any appropriate next steps regarding this pipeline project,” the NYDEC said in an email.

The 0.13-billion cubic feet per day (bcfd) pipeline will connect Competitive Power Ventures’ (CPV) 680-megawatt Valley Energy Center, which entered service in February using diesel as its fuel. CPV said it will switch to natural gas once it is available. Diesel was supposed to be a backup fuel.

Millennium filed with FERC to build the pipeline in November 2015. FERC approved construction in November 2016, pending receipt of other needed approvals like the NYDEC water quality certification.

That was after Millennium filed with both a federal appeals court and FERC seeking a ruling that the NYDEC had waived its authority to decide on the water permit.

After FERC denied the NYDEC’s request for a rehearing, the state appealed the decision to the U.S. Court of Appeals for the Second Circuit in New York, which denied the petition on Monday.