NY OKs power line to NYC from planned NJ plant

NEW YORK, Nov 12 (Reuters) - New York regulators on Thursday approved the New York portion of a power line under the Hudson River from a planned power plant in Bayonne, New Jersey, to New York City to help improve reliability of the city's power grid.

The 345-kilovolt power line will connect the new 512-megawatt natural gas-fired power plant in Bayonne with Consolidated Edison Inc's (ED.N) existing Gowanus substation in Brooklyn.

The plant, which will cost about $400 million, will produce enough power for up to 500,000 homes.

The project is a partnership between oil company Hess Corp (HES.N) and an affiliate of ArcLight Capital Partners LLC, an electricity-focused investment firm.

Once approved, it will be developed by Pure Energy Resources LLC of Massachusetts, according to the Bayonne Energy Center website.

The New York Public Service Commission said in a release, the project was expected to enter service in the fourth quarter of 2011. (Reporting by Scott DiSavino; Editing by Walter Bagley)