Feds overrule New York's natural gas pipeline permit denial

Federal regulators have overruled New York state's denial of a key permit for a pipeline expansion fueling a $900 million power plant under construction.

The Federal Energy Regulatory Commission determined Friday that the state Department of Environmental Conservation took too long to decide on the water quality permit needed to expand the Millennium natural gas pipeline in southeastern New York.

The 7.8-mile pipeline will supply gas for Competitive Power Ventures' 650-megawatt Valley Energy Center in Wawayanda, 53 miles north of New York City. Competitive Power Ventures hailed the FERC decision and said the plant will open early next year.

DEC said it's reviewing the decision and will consider all options.

Environmental activists targeted the pipeline as a way to stop the power plant.

DEC previously halted two major natural gas pipelines by denying water quality permits.