Champlain Hudson Power Express Enters Commercial Operation Early
The Champlain Hudson Power Express (CHPE) high-voltage direct current transmission line officially reached its commercial operational date shortly after midnight on 13 May 2026, making the 1,250 MW link from Canada to New York City available for scheduling transactions on the wholesale electricity market. At full capacity, the line is capable of supplying roughly 20% of New York City's power demand, enough to serve around one million homes.
The project had originally been expected to enter service in early June, but commissioning was completed ahead of schedule, allowing the line to participate in the May energy market. Peter Rose, senior director of stakeholder relations for Hydro-Québec, said the early completion means CHPE can help meet demand should a heatwave hit New York City in the coming weeks.
CHPE is being developed by Transmission Developers Inc. (TDI), a portfolio company of private equity firm Blackstone. Construction officially began on 30 November 2022, with the project carrying a total estimated cost of approximately USD 6 billion. The transmission line spans 339 miles (546 km) and was built entirely underground and underwater, running from the Canada–U.S. border south through Lake Champlain, the Hudson River, the Harlem River, and along rail and road rights-of-way before terminating at a new converter station in Astoria, Queens.
The HVDC system operates at ±320 kV and uses Hitachi Energy's HVDC Light voltage source converter (VSC) technology. Hitachi Energy supplied the converter station in Astoria, with civil works carried out by Kiewit. NKT manufactured and supplied the land and submarine cables. On the Canadian side, the line connects to Hydro-Québec's separately constructed Hertel–New York interconnection, a roughly 36-mile underwater and underground link running from the Hertel substation in La Prairie, Quebec, to the interconnection point in the Richelieu River at the border.
CHPE is underpinned by a 25-year contract with the New York State Energy Research and Development Authority (NYSERDA) signed under New York's Tier 4 clean energy programme. Under the contract, the line is expected to deliver around 10.4 TWh of hydropower annually from Hydro-Québec's reservoir system. The contract has a strike price of USD 97.50/MWh in the first year, with escalation thereafter, and is set to commence on 1 June 2026, the first day of the month following commercial operation.
Between 13 May and 1 June, Hydro-Québec will schedule transactions on the line when wholesale energy market prices support the economics. The transmission line is governed by an open-access tariff, meaning third parties can also schedule transactions when commercially viable.
The Federal Energy Regulatory Commission (FERC) approved the market rules for CHPE in April 2026, including revisions to the New York Independent System Operator's (NYISO) Open Access Transmission Tariff and its Market Administration and Control Area Services Tariff. Following completion of the required testing within NYISO's deadline, CHPE has also become eligible to participate in NYISO's July capacity auction—one month earlier than the developers had previously anticipated. Kevin Lanahan, NYISO's senior vice president of external affairs and corporate communications, confirmed that the facility has satisfied applicable tariff requirements to take part in the wholesale electricity markets.
CHPE is expected to deliver a range of environmental and economic benefits over its operating life. According to analysis cited by the developers, the line is forecast to reduce statewide electricity generation costs by approximately USD 17 billion over the first 25 years of operation and lower carbon dioxide emissions by an average of 3.9 million tonnes per year. The project also created approximately 1,400 union construction jobs and includes more than USD 100 million in environmental funding allocated through the Champlain-Hudson Environmental Trust over 35 years for habitat protection in Lake Champlain and the Hudson and Harlem rivers.
