GenOn Energy, Inc. _ Bowline 3 and Lovett ... - Energy Highway

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GenOn will procure state-of-the-art combustion turbines, heat recovery steam generators, steam turbine, air cooled condenser, and balance-of-plant equipment for the construction of Bowline 3. These technologies are widely available in the marketplace and have strong, well-documented performance track records. GenOn will seek to utilize qualified providers of equipment, materials and services located in the new York State region where possible and practical. pRoject justIfIcatIon Bowline 3 addresses key objectives and goals of the new York Energy Highway initiative as enumerated in the RFI. 1. OBJECTIVE: Reduce constraints on the flow of electricity to, and within, the downstate area; and expand the diversity of power generation sources supplying downstate. Assure that long-term reliability of the electric system is maintained in the face of major system uncertainties. Downstate new York, and the Lower Hudson Valley in particular, faces the possibility of significant near-term retirements of generating capacity due to weak market con- ditions and pending environmental regulations. These retirements threaten to jeopardize electric grid reliability in this critically important region of new York's bulk electrical system. Bowline 3, as an efficient CCGT facility capable of operating at a high capacity factor, will provide the replacement voltage support and power necessary to deliver safe and affordable grid reliability in the Lower Hudson Valley region. maintaining voltage levels in the Lower Hudson Valley is critical to optimizing new York’s ability to transfer energy efficiently to, and within, the downstate region, which is the largest driver of the statewide economy. 2. OBJECTIVE: Encourage development of utility-scale renewable generation resources throughout the State. As new York adds more renewable generation, the intermittent nature of these power resources will create challenges for system operators seeking to maintain a constant balance between load and generation. In this instance, the burden of maintaining system reliability will fall increasingly on the flexible operation of well-located thermal generation units. Bowline 3, as a state-of-the-art CCGT unit, will provide operational flexibility and load-following capability that will contribute to safe and affordable grid reliability and facilitate the transfer of renewable energy to the downstate region. This capability will be especially critical if high capacity factor, baseload generation units currently serving the downstate region are removed from the generation mix. 3. OBJECTIVE: Increase efficiency of power generation, especially in densely populated urban areas. As a CCGT unit with an ISO heat rate of approximately 6,800 mmBtu/kwh and designed to burn low-cost natural gas, Bowline 3 will be much more efficient and environmentally friendly than the older, less efficient gas/oil boiler units, which constitute www.GEnOnBOwLInE.COm 4
a large proportion of the downstate generation fleet. Bowline 3’s streamlined permitting status and high capacity factor operation will allow for the displacement or later re-powering of older, less efficient units, including those located in densely populated urban areas, and result in lower overall emission levels in new York. moreover, as a brownfield development project, Bowline 3 will be an efficient and cost-effective alternative to the development of new sites and requisite interconnections in congested urban and suburban areas as well as to the long-distance delivery of energy over already-congested transmission lines. 4. OBJECTIVE: Create jobs and opportunities for new Yorkers. Bowline 3 is expected to create 700 skilled construction jobs and approximately 25 high-quality, permanent jobs for personnel to operate the plant once it is completed. The project will also support hundreds of local jobs among vendors and suppliers. In addition, Bowline 3 will play an integral role in securing safe and affordable grid reliability for the region, spurring additional job creation and economic development. 5. OBJECTIVE: Contribute to an environmentally sustainable future for new York State. Bowline 3 will be outfitted with state-of-the-art technology designed to protect environmental quality for Haverstraw, the region and the Hudson River. The integration of air cooling technology will eliminate any environmental impact on the Hudson River and reduce overall plant water requirements by approximately 95% when compared to traditional wet cooling. In addition, highly-efficient, clean, state-of-the-art combustion turbine generation technology will be minimally impactful on local air quality. Brownfield development projects such as Bowline 3, by definition, minimize impacts on the environment and the surrounding community. fInancIal GenOn intends to fund Bowline 3 with a combination of equity and long-term project financing debt. Given this, the commercial arrangements must allow for the project to be financeable. To construct Bowline 3, GenOn will procure state-of-the-art technologies and EPC services from leading manufacturers and providers. Equipment and services of this type are long lead time items and must be ordered well in advance of breaking ground. Having developed and constructed over 12,000 mw of gas-fired power plants in the United States, GenOn is very experienced in managing the price and schedule risks typically associated with complex infrastructure construction projects. peRmIt/appRoval pRocess GenOn has made significant progress in its permitting effort for Bowline 3 and is actively carrying forward efforts to reflect design enhancements that will improve the environmental qualities of the project. These enhancements include improved turbine technology and converting from wet cooling to dry cooling. Because Bowline 3 has progressed favorably with the State and because the proposed changes benefit the environment, GenOn believes Bowline 3 will not face material permitting uncertainties and can quickly satisfy State permitting requirements. www.GEnOnBOwLInE.COm 5
Page 1 and 2: Response to new yoRK eneRGy hIGhway
Page 3 and 4: Introduction GenOn Energy, Inc. (
Page 5: The Bowline 3 CCGT will use efficie
Page 9 and 10: c. Provide certainty of execution t
Page 11 and 12: Having owned and operated electric
Page 13 and 14: puBlIc outReach and staKeholdeR enG
Page 15 and 16: appendix a: Bowline site--current a
Page 17 and 18: appendix c: Conceptual Layout of Bo

GenOn Energy, Inc. _ Bowline 3 and Lovett ... - Energy Highway

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