Selkirk Cogen Partners LP (SCP) is offering capacity from an existing facility that will be freed up when a power offtake contract expires in 2014 as an option if the Indian Point nuclear plant has to shut.
Indian Point 2 and 3 have been engaged in a protracted review before the Nuclear Regulatory Commission (NRC). The Entergy (NYSE:ETR) facilities are each seeking a 20-year license extension.
A heavily-redacted May 20 letter from Selkirk to the New York Power Authority (NYPA) was filed July 15 at the New York State Public Service Commission in the docket where the PSC ordered NYPA earlier this year to issue a request for proposals (RFP) for alternatives to the Indian Point capacity. NYPA has fielded many proposals as a result of that RFP in recent weeks.
SCP is the owner of the Selkirk Cogen facility, which is an existing nominal 345-MW natural gas-fired combined cycle cogen located in Selkirk, N.Y. SCP said it believes the supply of generation to NYPA from the project will provide NYPA and its ratepayers with significant economic and risk advantages relative to the types of facilities (i.e., new or repowered) sought by NYPA in the RFP.
“By submitting this response, SCP’s goal is to spur NYPA’s interest in exploring the possibility of negotiating a power purchase agreement (the ‘PPA’) with SCP either inside or outside the RFP process for the generation available from the Project,” the letter added.
The Selkirk project is located near the Southeastern border of the Capital Zone (Zone F) of the New York ISO with a primary fuel interconnection through a 2.1-mile pipeline interconnected with Tennessee Gas Pipeline. The project is also interconnected to National Grid electrically at 115 kV.
The project was constructed in two phases and has been a highly reliable generator with a forced outage rate averaging less than 2%, the company noted. Phase I consists of one GE-7EA combustion turbine, a single back pressure steam turbine and associated heat recovery steam generator. Phase II consists of two GE-7EA combustion turbines, a GE C8 condensing-extraction steam turbine and two associated heat recovery steam generators. The project’s multiple prime-mover configuration allows it to be dispatched on/off in small power block and to operate with a flat heat rate curve across a broad range of output, the company said.
Three-quarters (255 MW) of the project’s energy and capacity output is under contract with Consolidated Edison of New York. The output is delivered to ConEd’s system at the Pleasant Valley Substation and transmission from the project to Pleasant Valley occurs across grandfathered transmission rights that are presently held by SCP. This contract will expire on Aug. 31, 2014. The remaining one-quarter of the project’s energy and capacity is being sold into the merchant market.
The project will be free to contract with NYPA and begin delivering its full generation to NYPA in late 2014, well in advance of NYPA’s targeted commercial operations date of June 1, 2016, under the RFP, the company said. “The Project is able to do so without any development or construction related risks or contingencies, thereby providing NYPA and its ratepayers with much greater certainty than procurement of generation under the RFP from new build or repowered generation sources,” the company added.
Steam from the plant goes to an adjacent plastics manufacturing facility owned by Saudi Basic Industries Corp.
SCP is owned by certain funds managed by Energy Investors Funds, The McNair Group, Atlantic Power and Osaka Gas.