Highlands Current Audio Stories
Reliability concerns keep power plant open, for now Danskammer Energy, which runs a gas-fired plant on the Hudson River in the Town of Newburgh that operates only during peak demand, and which the company hoped to convert to full-time operation, filed for bankruptcy on June 10. The Chapter 11 petition, filed in Delaware, says the company owes creditors $13 million, including $11.8 million to the New York Independent System Operator, which manages the state power grid, and $760,000 in property taxes to Orange County. Danskammer did not respond to requests for comment. The filing comes five months after the company requested permission from NYISO to close the plant, which typically operates for only 5 to 10 days a year during heat waves. In response, NYISO said the plant must remain available until at least August and possibly January, in part due to concerns that the state lacks sufficient emissions-free energy sources to replace aging fossil-fuel plants. It also cited "demand forecasts based on expected weather, expected generator availability, transmission limitations and risks associated with the availability of key future planned projects." The latter refers to an executive order, signed by President Donald Trump on the first day of his return to office, that halted the permitting process for offshore wind projects. After a court ruled that the order was illegal, the administration adopted a different strategy. On Wednesday (June 17), Invenergy announced that the administration would pay $765 million for it to abandon four wind projects, including one that would have delivered at least 2 gigawatts to New York and New Jersey. NYISO does have wiggle room. Earlier this week, New York State announced the completion of the 339-mile Champlain-Hudson Power Express, a transmission line between Canada and New York City that passes the Highlands beneath the Hudson River. In addition, the state dropped plans to close two barge-mounted peaker plants that provide up to 608 megawatts to New York City. In 2018, Danskammer said it would renovate the Newburgh plant for continuous operation, but community pushback led to a lengthy legal battle. In 2021, the state denied the plant the clean-air permit it would need to proceed, arguing that upgrading the plant would violate the state's newly enacted Climate Leadership and Community Protection Act. It was during this time that Scenic Hudson released its own proposal for large-scale battery storage at the site to bring more renewable energy to the Hudson Valley. "We would love to see the dirty gas power plant get replaced with something that generates jobs and tax revenue for the town without also emitting pollution," said Stephen Ballentine of Scenic Hudson. The bankruptcy filing, as well as the state's recent relaxation of many of its climate targets as part of the 2026-27 budget, could open the door for another company to take over Danskammer and operate year-round. "I would imagine that it's still permissible for courts to reject applications based on CLCPA incompatibility, but we'll have to see how this changes things," said Ballentine. "That's part of the reason we were disappointed to see the rollback to the CLCPA."
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