New York's Senator
CHARLES E. SCHUMER

FOR IMMEDIATE RELEASE July 23, 2001

SCHUMER ENDORSES PROPOSED LI POWER PLANT; BRINGS LIPA, KEYSPAN, NRDC TOGETHER TO SUPPORT PLANT'S CONSTRUCTION

New Design of Power Plant Could Lead to Lower Electricity Costs For Consumers Without Damaging the Environment

Schumer Calls on Public Service Commission To Expedite Plant's Article X Approval; Calls for Doubling Plant's Generating Capacity from 250 Megawatts to 500

Standing today with LIPA CEO Richard Kessel, Natural Resources Defense Council (NRDC) Air and Energy Program Director Ashok Gupta, and Keyspan Energy Services and Supply President Robert Fani, US Senator Charles E. Schumer today endorsed the construction of a proposed power plant in Melville that would provide much-needed electricity to Long Island residents. Schumer called on the New York Public Service Commission (PSC) to expedite the upcoming Article X process needed for the Spagnoli Road Energy Center to proceed, arguing the plant's widespread support and Long Island's dire need for more electricity justifies speedy consideration and approval.

"This is the first time on Long Island and perhaps the first time ever in New York where the energy industry and leading environmentalists have come together to unequivocally support the construction of a new power plant, and that's because this plant will not only produce much needed power and bring down costs, but in a way that doesn't damage the environment" said Schumer. "This coalition not only underscores Long Island's dire need for more electricity, it shows that both sides - energy producers and environmentalists - can work together to produce more power in a responsible way."

Recognizing the efforts taken to ensure that the Spagnoli Road plant is environmentally sound, the NRDC endorsed a power plant on Long Island for the first time. "NRDC has always said that it could support some new, properly sited, combined-cycle, natural gas power plants and we are happy to join Senator Schumer in doing that today," said Gupta.

"We appreciate the Senator's support on our plan to build a 250 mw plant, said Robert Catell, KeySpan Chairman and CEO. "The proposed Spagnoli Rd. Energy Center will be the cleanest generating station on Long Island and among the cleanest facilities of its kind in the country. In addition, this natural gas fired combined cycle technology is so energy efficient it will save enough fuel to power the equivalent of more than 75,000 homes."

"I applaud Senator Schumer for supporting the Spagnoli Road project - a state-of-the art, environmentally friendly facility that will benefit all Long Island," said LIPA Chairman Richard M. Kessel. "LIPA is following a comprehensive energy strategy developed by Governor Pataki and the LIPA Board that emphasizes energy conservation and renewable technologies, but also includes, as key elements, new transmission to Long Island and additional on-Island generation. This strategy will enhance service reliability, keep rates stable and protect the environment."

Schumer also called on LIPA and KeySpan to expand the plant's proposed generating capacity from 250 megawatts to 500 megawatts. The plant's siting on a 31-acre parcel of undeveloped land has helped minimize the type of local opposition that usually accompanies the announcement of a new power plant.

According to LIPA statistics, demand for power on Long Island has been rising approximately 100 megawatts each year - enough to power 100,000 homes. LIPA officials warn that the possibility of hot weather this summer could push Long Island towards the brink of rolling blackouts similar to the current situation in California.

Schumer said that the natural gas-fired Spagnoli Road Energy Center would be a model of efficiency -- combined cycle generation would make the plant 30% more efficient than conventional generators. Combined cycle generators use both gas turbine cycles, where fuel is burned and combined with compressed air, and a system similar to conventional steam turbine generators, where waste heat from the gas turbine cycle is recovered within a boiler, making steam that drives the turbine which drives a second generator to produce more electricity. The combined cycle approach, because it recovers waste heat and reuses it to produce additional electricity, is far more efficient than single cycle approaches. The plant will also use Dry Low NOx burners on the gas turbine to minimize formation of nitrogen oxides at the combustion source, as well as a selective catalyst reduction control device to reduce nitrogen oxides in the exhaust gas, helping minimize the plant's emissions.

This new technology combined with plans to use clean-burning natural gas as fuel ensure that the Spagnoli Road plant will be the most environment-friendly electricity generator on Long Island and one of the cleanest in the nation as a whole.

Underscoring the need to increase generation, Schumer pointed to alarming demand and price data that forecast severe supply shortfalls and steady price increases for Long Island consumers. Among the troubling statistics:

1. Between 1995 and 2000, peak summer demand for electricity steadily rose from 4,104 to 4,564 MW while Long Island's generation capacity remained stagnant at approximately 4,507 MW.
2. The New York Independent System Operator (NYISO) estimates that demand on Long Island will rise to 4,993 MW by 2005, meaning that Long Island will have to find alternative sources for almost 500 MW of electricity in order to reliably supply electricity during the summer. According to the Long Island Power Authority, even more than 500 MW will be needed to develop a truly competitive retail market for electricity on Long Island.
3. According to NYISO predictions, without increases in generating capacity, energy prices that have remained fairly steady at slightly more than 13 cents per kwh could increase 15-20% to to 15-16 cents by 2005.

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