1,250-MW CHPE transmission line into NYC reaches commercial operation early

The 1,250-megawatt Champlain Hudson Power Express transmission line reached its commercial operational date on May 13, making it officially available for scheduling transactions. The line can supply roughly 20% of New York City's power demand at full capacity.

"The good news is that because we finished testing early, we are able to participate in the May energy market, which is great for New York City because if there is a heat wave, CHPE can help meet demand," Peter Rose, senior director of stakeholder relations for Hydro Quebec said in a phone call.

The project developers and owners had initially expected the high-voltage direct-current transmission line to become operational in early June, but testing was completed early, and the line entered commercial operational status shortly after midnight on May 13.

Transmission Developers, backed by private equity firm Blackstone, is developing CHPE. The project began construction in November 2022 and will be supplied with hydropower from provincially owned Hydro-Quebec's reservoir system.

"CHPE is currently available for energy market operations," a CHPE spokesperson said in an email.

Deadlines, economics

The owners have a contract with the New York Energy Research and Development Authority that starts June 1, which is the first day of the month after the project has reached commercial operations.

That means between May 13, and June 1, Hydro Quebec will schedule transactions on the line when energy market prices are high enough to support the economics, Rose said.

Third parties can also schedule transactions when economic, as the transmission line is governed by an open-access tariff.

The contract with NYSERDA has a strike price of $97.50/MWh in the first year, and it escalates from there.

Required testing to participate in the New York Independent System Operator's July capacity market was completed by the NYISO deadline, so the line will also start participating in that market.

"We thought we were only going to be available in August, but can start a month early," Rose said.

"The New York Independent System Operator confirms that the CHPE transmission facility has satisfied applicable tariff requirements necessary to participate in NYISO's wholesale electricity markets," Kevin Lanahan, NYISO's senior vice president of external affairs and corporate communications, said in an email.

"Following the completion of required testing and submission of a valid notice of intent, CHPE is now eligible to commence participation in the capacity market starting with the July auction and is eligible to participate in NYISO's energy market systems consistent with existing market rules," he said.

Spot market transactions will depend on whether power prices support them. With higher temperatures forecast over the coming days in the New York City area, electric cooling demand could increase power prices.

The high temperature in New York City on May 17 is forecast to reach 87 degrees Fahrenheit, according to the National Weather Service.

A 2025 heat wave pushed NYISO Zone J spot power prices to a daily average of $181.83/MWh June 24. Zone J on-peak day-ahead power prices have averaged $43.14/MWh thus far in May.