The New York Power Authority has updated its petition to the Department of Public Service to get priority status for the transmission portion of the Clean Path project.  

The update includes cost estimates for the project, as well as an attachment forecasting the potential financial benefits to New York consumers. The total estimated cost for this version of Clean Path is about $5.2 billion. Most of the expense comes from the $3.8 billion cost of equipment, materials and labor.  

Industry watchers told RTO Insider on background that the estimates generally seemed reasonable for a project of its scope but wouldn’t speculate on the specifics.  

Clean Path originally was an $11 billion portfolio of projects between the developers and the New York State Energy and Research and Development Authority. The package would include 178 miles of HVDC line between upstate New York and Queens, and 23 renewable energy facilities. The public-private collaboration between NYPA and Forward Power was believed by many industry watchers to be dead when the original contract was canceled in November 2024. (See $11B Transmission + Generation Plan Canceled in NY.) 

The original petition to save the transmission portions of Clean Path did not include cost estimates or a cost/benefit analysis. (See NYPA Files Petition with New York PSC to Save Clean Path Project.) 

Cost/Benefit

NYPA projected two scenarios for assessing the benefits of Clean Path: one where the state does not achieve a 100% emissions-free electrical system by 2052, and another where the state achieves 100% zero-emission generation by 2040. Both scenarios assumed the Climate Leadership and Community Protection Act goal of 70% renewable generation will be achieved by 2033.  

Both scenarios evaluated the project’s impact on the “locational minimum installed capacity requirements” in New York City. NYPA evaluated the benefits of Clean Path in terms of the cost of energy production, locational capacity requirements, renewable energy and zero emissions credits, and congestion prices. Secondary market effects were not considered. 

In the less optimistic scenario, Clean Path would accrue $6.2 billion of benefits, roughly $4 billion of which comes from projected reductions in locational capacity requirements. This means the primary benefit would be felt in terms of reduced capacity prices, specifically by importing cheaper renewables to New York City.  

In the more optimistic scenario, Clean Path would accrue $21.5 billion in benefits. The difference between the less optimistic and more optimistic scenarios’ forecasts is driven primarily by dramatically increased “load payment savings.” In other words, NYPA predicts that if New York were to build Clean Path and transition to 100% emissions-free renewables, the market would spend about $11 billion less on load. Spending on the production of energy and congestion also would save about $5.8 billion combined. 

The Department of Public Service (DPS) has not yet solicited public comment on the updated petition. Sources consulted on background said comment probably would be solicited within a week or so. Comment periods typically are open for 60 days. It’s likely DPS already is assessing the findings put forward in the petition, but it’s unclear how long after the comment period DPS will announce a decision.