Caithness Energy seeks more clarity on status of its Long Island plant expansion

Caithness Energy LLC said in a Feb. 25 filing at the New York State Public Service Commission that the Long Island Power Authority (LIPA) and PSEG Long Island LLC need to address certain issues at a technical conference to be held on March 3, including how their three-year rate plan proposal will affect Caithness Energy’s power plant expansion project.

PSEG LI stated that in preparing its three-year plan, it developed a baseline power supply plan. Caithness Energy wants PSEG LI to provide the basis for using that baseline power supply plan in preparing the three-year plan. Caithness Energy also requested that PSEG LI explain how its plan will incorporate any changes in the baseline power supply plan that result from conclusions reached by PSEG LI in its Integrated Resource Plan scheduled to be completed by December of this year, such as retirement of National Grid generating unit(s) subject to LIPA’s Amended and Restated Power Supply Agreement with National Grid Generation, and plans to proceed with Caithness Long Island II LLC‘s proposed 750-MW gas-fired combined cycle plant.

Caithness Long Island II in June 2014 had filed an application with the New York PSC to develop a dual-fuel, combined-cycle facility, with a nominal rating of 752 MW, in the Town of Brookhaven, Suffolk County, N.Y. Caithness asked for both a Certificate of Public Convenience and Necessity to develop, operate and own the project, and a lightened regulatory regime that normally goes to competitive wholesale generators.

“Caithness respectfully requests prompt review of this petition so that it is afforded sufficient time to meet the Long Island Power Authority‘s (‘LIPA’) planned Project in-service date of no later than May 1, 2018,” the application noted.

In July 2013, LIPA staff announced the selection of this project as the finalist in connection with its 2010 Request for Proposals to Provide Electric Capacity, Energy and Ancillary Services, subject to Caithness satisfactorily completing the necessary environmental review being conducted by the Town of Brookhaven and negotiating an acceptable power purchase agreement (PPA) with LIPA.

The project will be located on an 81-acre industrially-zoned parcel of land that borders the site of the Caithness Long Island Energy Center (CLIEC), a 350-MW gas-fired, combined-cycle plant that is owned by Caithness Long Island LLC, an affiliate of CLI-II.

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.