CHENANGO COUNTY – Unless overturned, the dismissal Friday of a lawsuit filed by NYRI challenging what it claims is an unfair state law could ultimately force the company to take its proposal to the federal government if it wants the $1.6 billion power line to get built in New York.

As of last month, the Federal Energy Regulatory Commission (FERC) can now take over a power line review in New York if the state denies a project like the New York Regional Interconnection.

But FERC can also override state authority if the project is approved in Albany, but done in a way that makes its construction “not economically feasible.”

The state review has not occurred.

However, as it stands, NYRI, if granted a permit, would not have the power to take private property using eminent domain; creating a situation that company officials have said would make it economically impossible for the Canadian-backed developer to construct the line under state law, but not, possibly, under federal.

NYRI’s previously legal right to eminent domain was taken away from the company in October 2006 when Gov. George Pataki signed into a law an amendment created by anti-NYRI politicians. The amendment’s sponsors say the move was specifically aimed at derailing the power line, and not other transmission companies.