Lawsuit against NY Public Service Commission can proceed

A state Appellate Court ruling reversed the dismissal of the suit by a State Supreme Court judge, which returns the matter to State Supreme Court.

The environmental groups’ lawsuit centers on the PSC’s decision to allow Canadian company Digihost International to buy the Fortistar natural gas-fired power plant in North Tonawanda, for cryptocurrency mining.

The environmental groups contend the PSC failed to analyze the climate and environmental effects of allowing that purchase to proceed, as required under the state’s climate law.

“We are heartened by this news – we continue to regularly hear complaints from neighboring residents of noise and vibration issues from the cryptocurrency operations at Fortistar, and residents continue to be extremely concerned about the health impacts from poor air quality,” said Bridge Rauch, environmental justice organizer at Clean Air Coalition of Western New York.

A representative for Digihost could not immediately be reached to comment on the Appellate Court ruling. The PSC said it does not comment on pending litigation.

Digihost in 2021 bought the Fortistar plant at 1070 Erie Ave. for $3.5 million. The PSC approved the transaction in September 2022.

Environmentalists have challenged the project and are urging the state Department of Environmental Conservation to deny the renewal of an air permit for the facility.