July (pdf) - New York Power Authority

SCPPs
To meet potential capacity deficiencies in the New York City metropolitan area, which could also
adversely affect the statewide electric pool, and to meet installed capacity requirements relating to its SENY
and Long Island customers, the Authority installed eleven natural-gas-fueled electric generation units at
six sites in New York City and at one site on Long Island which entered into commercial operation in 2001.
Each small power plant has a nameplate rating of 47 MW. However, as a result of commitments made by
the Authority in the course of obtaining regulatory authorizations for the plants, at sites which house two
units, the combined output of the plants cannot exceed 79.9 MW.
The New York City plants are located as follows: one plant is located at a site in Williamsburg,
Brooklyn; one plant is located at a site in Staten Island at Lynhurst Avenue and Edgewater; two plants are
located at a site in Sunset Park, Brooklyn; two plants are located at a site in Long Island City, Queens; two
plants are located at a site in the Bronx at Hell Gate; and two plants are located at a site in the Bronx at the
Harlem River Yards.
In December 2001, the Authority, DEC, The City of New York (the ‘‘City’’), and certain of the
petitioners involved in litigation relating to the SCPPs located at Vernon Boulevard, Long Island City, site in
Queens (the ‘‘Stipulation Petitioners’’) entered into a Stipulation of Settlement (the ‘‘Stipulation’’) which
settled the litigation. Among other things, the Stipulation provides that the Authority will cease operations of
its two small power plants (the ‘‘VB Power Plants’’) at the Vernon Boulevard site (the ‘‘VB Site’’) upon the
date of commencement of the commercial operation of either:
(i)
(ii)
the Authority’s 500-MW Plant; or
a proposed 1000-MW plant (the ‘‘1000-MW Plant’’) to be built by another entity and
known as the Astoria Energy LLC project;
provided that the Authority’s cessation and removal obligations can only be enforced by the Mayor of the
City of New York, when the Mayor deems it advisable and after consulting with the President of the
Borough of Queens and the Councilmember from the 26 th Council District in Queens, New York City.
Upon a decision to remove the plants, the Authority would be required to expeditiously remove the
turbines, generators, skids and associated equipment from the VB Site within 90 days after such
cessation. Under the Stipulation, the Stipulation Petitioners agree to reasonably support any voluntary
activities by the Authority, to the extent permitted by law, aimed at relocating the two VB Power Plants to
an appropriate site in the Borough of Queens.
The Stipulation also provides that if, as of the day prior to the date on which the Authority is
obligated to cease operations of the VB Power Plants pursuant to the Mayor’s enforcement action,
discussed above, the aggregate electrical generating capacity (exclusive of the VB Power Plants) as
determined by the NYISO or any successor entity, amounts to less than 81% of the total in-City projected peak
electrical demand as determined by the NYISO or a successor entity for the summer of the year in which the
Authority ceases such operation, then the City shall, within 6 months of receipt of documentation of
project cost and expenses, reimburse the Authority in an amount equal to the Authority’s unamortized cost
for the Vernon Boulevard facility (including, without limitation, the costs of purchasing and installing the units
and all associated equipment, all site acquisition and remediation costs, and the costs of all foundation, piling
and duct work), but in no event shall such reimbursement exceed $40 million. The City’s payment
obligation, however, is conditioned upon the Authority having offered, for a specified period, to sell at fair
market value the VB Power Plants to an entity willing to remove and relocate those units to another location
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