July (pdf) - New York Power Authority

500-MW Plant and Cessation of Operation of Poletti Plant
The Authority’s 500-MW Plant entered into commercial operation on December 31, 2005 at a cost of
approximately $745 million. In connection with the licensing of that facility, the Authority executed an
agreement that resulted in the cessation of operation of its Poletti generating plant (which had entered into
service in 1977) on January 31, 2010 (see ‘‘PART 2—THE AUTHORITY’S FACILITIES—
Generation—500-MW Combined-Cycle Electric-Generating Plant’’).
New Astoria Energy II Plant
Following a request for proposals issued in November 2007, the Authority entered into a long-term
electricity supply agreement with Astoria Energy II LLC in 2008 for the purchase of the output of a
natural-gas fueled generating plant proposed to be constructed in Astoria, Queens to serve the needs of
the Authority’s NYC Governmental Customers. Construction of the new 550-MW plant (“Astoria
Energy II plant”) has been completed and it entered into commercial operation on July 1, 2011. See
“PART 2—POWER SALES—Marketing Issues and Developments—Item (8).”
Hudson Transmission Partners, LLC Project
Following a request for proposals issued by the Authority in March 2005 in connection with longterm
supply requirements of its NYC Governmental Customers, the Authority executed a firm
transmission capacity purchase agreement with Hudson Transmission Partners, LLC (“HTP”) in April
2011. HTP is constructing a 345 kV underground/submarine transmission line extending from Bergen
County, New Jersey to Con Edison’s West 49 th Street substation in midtown Manhattan. Construction of
the transmission line commenced in May 2011 and completion of construction is expected to be in the
summer of 2013. See “PART 2—POWER SALES—Marketing Issues and Developments—Item (9).”
Certain SENY Governmental Customer Long-Term Agreements
The Authority and its major governmental customers in New York City (‘‘NYC Governmental
Customers’’), including the MTA, The City of New York, the Port Authority, the New York City Housing
Authority, and the New York State Office of General Services, have entered into long-term agreements
(the ‘‘2005 Agreements’’). Under the 2005 Agreements, the NYC Governmental Customers have agreed to
purchase their electricity from the Authority through December 31, 2017, with the NYC Governmental
Customers having the right to terminate service from the Authority at any time on three years’ notice
provided that they compensate the Authority for any above-market costs associated with certain of the
resources used to supply the NYC Governmental Customers and, under certain limited conditions, on one
year’s notice. For a discussion of the 2005 Agreements, see ‘‘PART 2—POWER SALES—Marketing Issues
and Developments—Item (1).’’
Recent Legislation Relating To Authority Power Allocation Programs
Legislation enacted into law in March 2011 creates a new economic development power program to
commence July 1, 2012, the Recharge New York Power Program, to replace and expand upon the Authority’s
Power for Jobs and Energy Cost Savings Benefits programs. The new program will utilize 455 MW of
hydropower from the Authority’s Niagara and St. Lawrence-FDR projects combined with up to 455 MW of
market-based power purchases (see “PART 2―POWER SALES―Marketing Issues and Developments—Item
(4)”). Also, legislation enacted into law in August 2010 establishes a Western New York Economic
Development Fund Benefit program which is to be funded from proceeds of the Authority’s sale into the
wholesale market of certain unallocated, relinquished, or withdrawn Expansion Power and Replacement Power
2-5