CPV offers 667-MW New York gas project as Indian Point option

Competitive Power Ventures (CPV), through its wholly owned affiliate, CPV Valley LLC, is proposing a nominally rated 667-MW combined cycle facility, the CPV Valley Energy Center, for a site in Orange County, N.Y.

This proposal was filed with the New York Power Authority on May 20 in answer to a request for proposals (RFP) for capacity to possibly replace the Indian Point nuclear plant, which may have to shut by 2016 if it can’t get license renewals from the Nuclear Regulatory Commission. RFP proposals have since then been filed sporadically with the New York State Public Service Commission in the docket for the Indian Point alternatives case, with the CPV offer lodged there on July 16.

Note that a prior version of the CPV offer was immediately available in this docket, with the new version filed July 16 having much less redacting than the initial version made available to the public in May.

The CPV project would be located on an approximately 122-acre parcel in the Town of Wawayanda, Orange County. The site is bounded by Interstate‐84 to the south, Route 17M on the east, and Route 6 to the north and west. The facility is permitted and designed to operate on clean burning natural gas, and includes the most advanced technologies for environmental controls. To provide additional system reliability benefits, it will be capable of operating on ultra‐low sulfur distillate (ULSD) oil if natural gas is not deliverable at any time.

“CPV Valley is a ‘no regrets’ opportunity for New York,” said CPV. “The Project provides New York a new resource in the Lower Hudson Valley, which has been identified as needing additional resources for reliability. New York’s need for new system resources, along with the economic benefits ($763 million), job creation (2,922 construction jobs/ 94 operations jobs), environmental attributes and the ability to be [in commercial operation] by June 1, 2016 make CPV Valley a ‘no regrets’ project, regardless of the future of Indian Point.”

As a state‐of‐the‐art combined‐cycle facility, the project will be more efficient than almost all of the existing fossil fuel‐fired generation in New York’s fleet. The project will be 100% deliverable throughout New York based on the New York Independent System Operator (NYISO) Class Year 2011 Facility Study.

The project is at an advanced stage of development having obtained nearly all of the state, local and federal permits and approvals needed for a June 1, 2016, commercial operations date (COD).

The facility will consist of two F‐class gas turbines and one steam turbine. It will operate on natural gas throughout the year supplied via the Millennium Pipeline Co. The project is electrically located within NYISO Zone G, and will interconnect to New York Power Authority’s 345-kV electric transmission line (Line 42) between the Coopers Corners and Rock Tavern substations.

CPV points to a lot of experience with power plant development

CPV noted that it is actively developing natural gas‐fired generation projects in select markets in North America, and leading the development and/or construction of about 7,041 MW of natural gas‐fired projects in various stages of development of which:

  • 2,052 MW are under long term financial contract or Power Purchase Agreements (PPAs) with Load Serving Entities (LSEs);
  • 800 MW declared a commercial operation date on May 1, 2013; and
  • 1,324 MW of natural gas‐fired development projects that may begin construction as early as 
2013.

CPV also manages 4,674 MW of natural gas‐fired generation and wind assets in North America. CPV’s management team has successfully developed over 20,000 MW of power projects that are currently in operation, and has acquired or monetized more than $10bn of generation assets, the company noted.

The following are some of the key highlights of CPV’s recent thermal development activities:

  • On May 1, 2013, the 800 MW nominally rated CPV Sentinel Project located in Southern California achieved commercial operation three months ahead of schedule.
  • On April 16, 2013, the Maryland Public Service Commission issued an order requiring certain of the Maryland Electric Distribution Cooperatives to enter into a 20-year Contract for Differences with CPV Thermal’s St. Charles Energy Center.
  • On March 15, 2011, CPV Thermal’s Woodbridge Energy Center was awarded a long‐term capacity contract in the New Jersey Board of Public Utilities’ competitive procurement process.
  • On March 5, 2008, CPV Thermal’s Warren Project, a 600-MW fully-developed combined cycle project, located in Virginia, was acquired by Dominion (NYSE: D) and entered construction in late 2011 with a commercial operation date expected in 2014.

As example renewable energy projects, CPV cited:

  • In December 2012, CPV REC sold the fully operational CPV Cimarron I Renewable Energy Co. LLC wind energy project in Kansas to NextEra Energy Resources. This 165 MW wind project is under a 20-year PPA with the Tennessee Valley Authority.
  • In March and April 2011, CPV REC executed a 20 year, 132-MW PPA with Kansas City Power & Light for the CPV Cimarron II Renewable Energy Co. LLC wind energy project in Kansas. In June 2011, CPV REC sold Cimarron II to Duke Energy Renewables, and this project completed construction in 2012.

Within New York, CPV has extensive familiarity and experience with the NYISO markets as a result of its current asset management responsibilities for the Athens Generating facility, a 1,080-MW 3x3x3 combined cycle facility located in Athens, N.Y., and the advanced stage of development of CPV Valley. CPV also advanced its proposed Smithtown Energy Center into the final round of the Long Island Power Authority’s (LIPA’s) 2010 Generation and Transmission procurement process.

CPV said it has assembled a first‐rate project team for its New York project that includes TRC Environmental Consultants, Nixon Peabody LLP, Levitan & Associates, Mott MacDonald, and, as EPC contractor, Skanska/Burns & McDonnell.

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.