THE LUYSTER CREEK ENERGY PROJECT ... - Energy Highway

A S T O R I A
G E N E R A T I N G
Interconnection
Potential interconnection point(s)
The LCEP equipment will be electrically interconnecting to the grid via existing connections
from the existing Astoria Facility Units. The specific proposed Point of Interconnection
(POI) is Con Ed’s Astoria West Substation via the existing Astoria West 138 kV
Substation Unit 3 (A3) feeders 24121/24122.
Respondent’s assessments of why such interconnection point(s) are optimum, from both an economic
and reliability perspective.
LCEP optimizes existing interconnection points and the existing infrastructure in the
Astoria Complex.
Respondent’s assessment of whether the energy and/or capacity is deliverable to the bulk electric
system.
AGC has determined that with a relatively minor amount of system upgrades both the
energy and capacity of the LCEP are deliverable to the electric grid.
Technical
Anticipated life of facility components
The LCEP will be designed for a useful operating life of approximately 30 years.
Quality and duration of original equipment manufacturer warranties
Final manufacturer warranties have not yet been negotiated; however, nothing less
than industry standard warranties will be acceptable.
Construction
Opportunities for New York-based manufacturing and/or assembly of equipment
It is anticipated that construction and equipment will result in an expenditure of $800
million to $1.0 billion, of which it is estimated more than 25% is expected to be spent in
the local New York Metropolitan Area. An effort will be made to identify local competitive
suppliers. The local expenditures are expected to generate tens of millions in additional
secondary, economic activity in the area. A Cornell study estimated additional
economic activity from a project by applying the output multiplier (1.66). While this
multiplier has some limitations, it is reasonable to assume half again as much economic
activity will be created by the project due to the local expenditures and could result in
hundreds of millions of dollars in local economic activity.
Labor expenditures for construction of the LCEP Equipment will be a substantial portion
of the total cost of the project. The majority of this labor cost is expected to be paid
to labor provided from the metropolitan area. An effort will be made to hire locally. In
addition to local temporary jobs, the community will also benefit from additional direct
non-payroll expenditures.
Description of potential contractual arrangement(s) during construction
This project will be conducted under an EPC arrangement.
THE LUYSTER CREEK ENERGY PROJECT MAY 30, 2012
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