THE LUYSTER CREEK ENERGY PROJECT ... - Energy Highway

A S T O R I A
G E N E R A T I N G
Availability of labor, materials and installation equipment
USPG has determined that there is adequate labor, material and equipment to construct
the facility.
Potential decommissioning options for removal of a project at the end of its life cycle, including
designation of a potential responsible party from a cost and environmental perspective
The LCEP unit will be designed for a useful operating life of approximately 30 years.
During the life of the LCEP, maintenance and refurbishment of the components will be
required. Near the end of its useful life, the primary components of the LCEP equipment
could undergo significant refurbishment to maintain a competitive position in the market
and extend the life of the components. Alternatively, since electric generation technology
is anticipated to advance over the life of the LCEP equipment, it is reasonable
to expect that new, even more efficient, state-of-the-art equipment could be installed at
the site in lieu of refurbishment. To the extent that the transmission and distribution system
in Queens and the City remains similar to that which currently exists, it is likely that
the site will remain a critical location for electric power generation. The site’s proximity
to the existing, adjacent utility switchyard is expected to continue to be required as an
electric generation site to maintain system reliability.
In the event AGC determines that the LCEP equipment is no longer economically viable
it may be decommissioned and the equipment offered for sale. The value of this
equipment could be reinstallation at another location or for its intrinsic scrap value. The
expectation is that the purchaser would be responsible for dismantling and removal of
the equipment from the site and that the salvage value would be in excess of the cost
to remove. The site could then be redeveloped for another business or appropriate use
consistent with City requirements at the time of decommissioning.
Operational
Projected or guaranteed project availability and/or energy production over project life
It is anticipated that the Siemens H unit and ancillary equipment will have availability in
the high nineties with corresponding capacity factors reflecting the efficiency of the unit
which will have the lowest heat rate in New York.
Safety and emergency considerations
Certified by the OSHA as a “Star” site under the Voluntary Protection Program, the existing
Astoria Facility has implemented a proactive safety program which provides and
promotes a safe and healthy workplace environment through the active involvement by
all employees across all levels of the organization.
The Astoria Facility is regulated under the USCG Marine Transportation Security Act
as well as the Oil Pollution Act. Both of these regulations subject the site to frequent
inspections to ensure that proper security plans, response plans and procedures are in
place to ensure compliance and preparation.
The operation of the LCEP is not anticipated result in any significant adverse impacts
to the public safety and security in the vicinity of the project. Because the site is currently
an active electric generating facility, there are Health and Safety Plans prepared
and in effect.
THE LUYSTER CREEK ENERGY PROJECT MAY 30, 2012 10