US Power Generating advances Luyster Creek project for N.Y. capacity

In response to a New York Power Authority (NYPA) request for proposals (RFP), US Power Generating submitted a plan for the gas-fired Luyster Creek Energy Project (LCEP).

A redacted copy of the company’s offer was filed June 20 at the New York State Public Service Commission in the docket for the Indian Point shutdown alternative case. The PSC had, as part of this case, earlier this year ordered NYPA to issue the RFP to line up options in case the two-unit Indian Point nuclear plant has to be shut. The plant is going right now through two protracted Nuclear Regulatory Commission license extension proceedings, one for each unit.

The LCEP project will be located in the Fuel Oil Tank Farm (FOTF) at the Astoria Generating Station (AGS) owned by US POWER GEN’s Astoria Generating Co. LP (AGC) subsidiary. The project will interconnect in the Astoria West Yard in Astoria, Queens, Zone J. Under Option A, the project will bring 387 MW on line by June 1, 2016, and a total of 430 MW by April 1, 2017.

US POWER GEN said the Project includes several positive attributes including:

  • being sited at the US POWER GEN subsidiary AGC’s fuel oil tank yard. It uses existing infrastructure, including the interconnection, use of a brown field, properly zoned power 
generation site, and existing natural gas infrastructure;
  • providing an environmental strategy to reduce the net emissions from the existing equipment to provide an overall environmental benefit when the combined facility becomes operational;
  • eliminating the use of #6 oil at the existing AGS and replacing it with Ultra Low Sulfur 
Diesel (ULSD);
  • providing an estimated $270m in consumer benefits per year $100m in 
production cost benefits per year and equating to a present value of over $1.5bn in consumer benefits and nearly $1bn in capacity market savings over a 15-year period; and
  • creating an average of 1,000 jobs a year for the four-year construction period and an economic benefit of $350m annually.

LCEP is number 361 in the New York Independent System Operator (NYISO) interconnection queue. 
The project is a one-by-one Siemens H combined-cycle unit with duct firing. It is the highest efficiency unit available for fossil fuel generation, with a heat rate of 6,941 Btu/kWhr, the company noted. It provides rapid response, with a four-hour cold start time and offers black start capability.

US POWER GEN, a private company based in Stamford Conn., will develop, own (either directly of through a new special purpose entity) and operate LCEP. Through AGC, US POWER GEN currently owns and operates three facilities in New York, totaling over 1,700 MW of currently operating generation providing energy, capacity and ancillary services into the electric markets administered by the NYISO.

The New York City facilities include the Astoria Generating Station (AGS) located in Queens, and two stations in Brooklyn, the Gowanus Generating Station (GGS) and the Narrows Generating Station (NGS). The AGS, where LCEP will be located, currently contains four steam units and a gas-fired combustion turbine totaling 1,347 MW. Two of the units, Astoria 20 and Astoria 40, have been mothballed. Unit 40 is the subject of a separate proposal in the NYPA RFP and is also included in this proposal as part of Option A, which is a transitional vehicle for compliance. The remaining steam units Astoria 30 and 50 would be subject to emission caps as part of the permitting of LCEP.

There are two options proposed:

  • Option A – includes bringing the 387-MW Astoria Unit 40 (currently mothballed) on line by April 1, 2015, with a one-year contract beginning on April 1, 2016. This ensures that generation will be on line and operational by June 1, 2016. LCEP will follow and have 430 MW fully operational by April 1, 2017. At that time Unit 40 will become a market-based unit and not subject to a contract.
  • Option B – is LCEP standing alone and being delivered on April 1, 2017, providing 430 MW of highly efficient capacity.
About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.