Thursday, October 1, 2026
A Potomac Economics Market Monitoring Unit report from May 2023 stated that the Propel NY Energy project would reduce capacity requirements in the downstate region by “much less” than the New York Independent System Operator’s evaluation assumed. This statement has returned to local conversation, and local opposition continues to grow as Propel goes through the state permitting process and power generation remains unclear.
“To go forward with the hope that a future administration in Washington will embrace renewable energy,” Sea Cliff Village Administrator Bruce Kennedy said, “that’s too big a gamble.”
The Long Island Power Authority included an excerpt from the Potomac report in a complaint filed to the Federal Energy Regulatory Commission in July, writing that the finding means Propel “will simply shift limiting constraints on reliability needs within downstate NY, rather than eliminate them.” LIPA’s complaint to FERC argues that Neptune Regional Transmission System should no longer have negotiated rate authority. FERC granted Neptune that authority in 2001 based on conditions that LIPA says no longer exist.
LIPA Public Information Officer Michelle Livingston said that LIPA included that Propel would not replace what the entity needs from Neptune in the filing to emphasize the complaint’s urgency to FERC. LIPA maintains its support for Propel, with Chief Executive Officer Carrie Meek Gallagher calling it a “critical part” of strengthening the power grid and making it more flexible.
“Propel NY is one of the most important electric reliability investments for Long Island in a generation,” Gallagher wrote in a statement. “As our region’s energy needs continue to grow, strengthening the transmission system is essential to keeping the lights on, improving resilience during extreme weather, and ensuring customers have access to reliable, affordable power.”
NYISO chose the $3.26 billion project in 2023 as a solution to problems like increased demand on the state’s power grid and reliability in severe weather. It was also chosen to meet the Long Island Offshore Wind Export Public Policy Transmission Need, as stated in a 2023 NYISO news release. The Trump administration has cancelled multiple offshore wind projects, mostly recently paying German energy firm RWE $1.22 billion to cancel its project that would have included a wind farm off the coast of New York.
Propel representatives has said that the project is not tied to any offshore wind or battery storage, and that lines can carry any kind of power. Spokeswoman Marykate Guilfoyle maintained in a statement that the project is necessary.
“The state grid operator continues to warn that reliability on Long Island and in downstate New York is shrinking,” she wrote, “and, without Propel, emergency operations, blackouts and brownouts could become common.”
NYISO is responsible for determining what kind of power will flow on Propel’s lines. Residents and local officials continue to oppose the project, citing not having an answer as to where power is coming from and the project not satisfying a public need.
“There’s a lot of discussion right now about ‘how does this current proposed project meet the states need from a few years ago?’” Kennedy said. “And we don’t believe it does.”
Glen Head resident and local advocate against Propel Christine Panzeca echoed Kennedy’s statement, also noting public need and power generation.
“LIPA has confirmed what residents have maintained all along: this $3.2 billion project does not address our energy needs for reliability or generation,” she wrote in a statement. “It lacks any actual power source! It is unconscionable to compel our communities to shoulder the health and safety risks, as well as the environmental and financial consequences, of a project whose ever-shifting ‘need’ justifications have effectively collapsed. It should be dismissed!”
The 2023 Potomac report states that “if the NYISO determines that it must or should select a project, we recommend that it reconsider its recommendation of T051 since it does not appear to be the most cost-effective project.” T051 refers to Propel.
NYISO pointed to aging generation and grid reliability eroding by 2031 as reasons for Propel’s necessity, but did not comment on where power that would flow on the lines would come from.
The North Shore, Roslyn and Syosset school districts filed a motion with the Public Service Commission in July to dismiss Propel. The Gold Coast Business Association filed its own motion to dismiss on Aug. 7.
