July (pdf) - New York Power Authority

Projected Capital and Financing Requirements and Other Potential Initiatives
The Authority currently estimates that it will expend approximately $998 million for various capital
improvements over the five-year period 2011-2015, some of which have already been made as of the date
of this Official Statement. The Authority anticipates that these expenditures will be funded by existing
construction funds, customer receipts, internally generated funds, and additional borrowings of
approximately $___ million during the period 2011-2015. It is anticipated that such borrowings will be
used to fund costs associated with the modernization of the Lewiston Pump-Generating Plant at the Niagara
Project, and an upgrade of the Moses Adirondack Transmission Lines 1 and 2 (see “PART 2―THE
AUTHORITY’S FACILITIES―Generation―Niagara”; “PART 2―THE AUTHORITY’S
FACILITIES―The Authority’s Transmission System”).
The Authority’s projected capital requirements for the period 2011-2015 are set forth below:
Estimated Total
Expenditures Over
5-Year Period
2011-2015
(in millions)
Projects
Plant Modernization (Lewiston Pump, St. Lawrence) ................. $ 230
Moses Adirondack 1 and 2 Transmission Line ............................ 110
Switchyard Modernization Program .......................................... 94
Transmission Initiative .............................................................. 84
Relicensing Compliance/Implementation .................................. 57
Niagara Stator Rewind and Restack Project .............................. 39
IT Initiatives .............................................................................. 24
Niagara Unit 2 and 13 Standardization ...................................... 22
Fleet .......................................................................................... 16
500-MW Plant Upgrades ........................................................... 9
Other (projects less than $9 million) .......................................... 313
Total .......................................................................................... $ 998
In addition, the Authority’s capital plan includes the provision of $1.05 billion in financing for energy
service projects to be undertaken by the Authority’s governmental customers and other public entities in the
State (see “PART 2―ENERGY SERVICES”). The Authority has several other potential initiatives in
varying stages of review and/or development which if they come to fruition will involve significant
additional capital and/or operating expenses. These initiatives include the transmission line between Bergen
County, New Jersey and midtown Manhattan currently under construction by HTP for which the Authority
has entered into a firm transmission capacity purchase agreement; consideration of two off-shore wind
generating facilities, one in the New York waters of the Great Lakes and the other in the Atlantic Ocean off
of Long Island; and the potential development of 100 MW of solar photovoltaic systems throughout the
State. See “PART 2―POWER SALES―Marketing Issues and Development―Items (9), (10), (11), (12).”
The construction costs of any other future facilities or any other improvements to existing facilities may
be financed with the proceeds of additional Obligations, as defined in the General Resolution (see ‘‘PART
2—APPENDIX 1—SUMMARY OF CERTAIN PROVISIONS OF THE GENERAL RESOLUTION’’),
or other debt issued by the Authority or through the use of existing construction funds or internal sources.
2-8