PSEG Long Island outlines power plans for the next few years

PSEG Long Island, which recently took over many of the functions of the Long Island Power Authority, filed a Utility 2.0 Long Range Plan for the Authority with the New York State Public Service Commission that is heavy on energy efficiency initiatives, but has some power generation development provisions.

That filing was made on July 1. PSEG Long Island is a unit of New Jersey-based Public Service Enterprise Group (NYSE: PEG).

“PSEG Long Island, as the Authority’s Service Provider, is committed to building an industry leading electric company dedicated to providing the people of Long Island and the Rockaways with exceptional customer service, best-in-class reliability and storm response, and a strong level of involvement in the communities in which its customers and employees live and work,” said the filing. “This proposed Utility 2.0 Plan serves as the first in a series of annual long-range capital and operating plans contemplated by the Public Authorities Law and the [Restated Operations Services Agreement] OSA to help facilitate this objective.”

While the Authority and New York State have been among the nation’s leaders in clean energy initiatives, PSEG Long Island said it believes that there remains untapped potential for targeted investments in demand side management. This includes increasing the use of energy efficiency, direct load control (DLC) demand response, and distributed energy resources (DER) such as distributed generation.

The Authority has taken several measures and issued requests for proposals (RFPs) to meet supply needs emerging in 2018. The Authority has also made significant investments towards meeting its clean energy goals. These activities include:

  • A supply RFP to Provide Electric Capacity, Energy & Ancillary Services (“supply RFP”), which resulted in selecting the Caithness Long Island II LLC combined cycle plant in August 2013. This contract is still being negotiated. Caithness applied June 30 at the PSC for approval of this 752-MW, gas-fired project.
  • A recent RFP for New Generation, Energy Storage and Demand Response Resources (GSDR) solicited supply both system-wide and in specific load pockets. Bidding closed in March 2014 and selection is targeted for 2014.
  • An RFP for 280 MW of New, On-Island, Renewable Capacity and Energy (“renewable supply RFP”) solicited for eligible resources at a minimum 2 MW (i.e. utility scale), to support renewable energy goals in tandem with the feed-in tariff. Bidding closed in March 2014 and selection is targeted for 2014.

PSEG Long Island sees more potential with distributed solar

The Authority has historically incentivized the deployment of solar PV and renewable energy projects through a variety of programs including the Clean Solar Initiatives (CSI and CSI II), the Clean Renewable Energy Initiative, support for utility-scale solar projects, the 280-MW renewable supply RFP, the Solar Pioneer and Entrepreneur Programs, the Backyard Wind program, and the Solar Thermal program. PSEG Long Island said it believes potential remains to support behind-the-meter solar PV projects hosted by commercial customers.

PSEG Long Island will consider offering incentives to install combined heat and power (CHP) for systems of 1.3 MW or below. Systems of this size on Long Island are excluded from the existing CHP programs offered by the New York State Energy Research and Development Authority (NYSERDA). A capacity incentive based upon the installed capacity of generator and a production incentive proportional to the actual energy savings produced by the system could support certain projects. The capacity incentive could be paid in installments based on a project achieving certain milestones (i.e., signing contracts, beginning construction, commercial operation). The production incentive could be available during the first 18 months of operation. The actual incentive structure would be determined through further information gathering and analysis.

Prior to PSEG Long Island’s role as service provider, the Authority developed a plan to allow deferral of the transmission through the use of a series of alternatives: plans for expanded energy efficiency and direct load control in the South Fork, a locational premium included in the Clean Solar Initiative II (CSI II) for 40 MW of solar PV in the South Fork, and energy storage options through the recent RFP for New Generation, Energy Storage and Demand Response Resources (GSDR). Although the results of CSI II and the recent supply RFP are under review, and the RFP for energy efficiency and DLC is still in development, PSEG Long Island believes these resources can defer the need for transmission and peaking capacity on the South Fork.

The Authority’s RFP for New Generation, Energy Storage, and Demand Response Resources was issued in October 2013, and closed March 31. The Authority solicited for three different blocks of resources: Block #1 included up to 250 MW of peaking generation or energy storage (up to 50 MW) in the East End; Block #2 included up to 880 MW of peaking generation and energy storage (up to 100 MW) in the EF Barrett and Holtsville areas; and Block #3 included up to 500 MW of peaking generation, energy storage, and demand response system-wide. Proposals are currently under review.

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.