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LIPA Selects Caithness for New Combined-Cycle, Natural Gas-Fired Power Generating Station in Yaphank, NY

New plant will be among the nation’s cleanest, most efficient and most environmentally advanced; will complement benefits of existing Caithness plant in reducing emissions and meeting the demand for new, cost-effective power 
NEW YORK  August 26, 2013  Caithness Long Island II, LLC (Caithness), a subsidiary of Caithness Energy, L.L.C., is pleased to confirm that its proposal to build and operate a new 750-megawatt (MW) combined-cycle, natural gas-fired power plant has been selected by the Long Island Power Authority (LIPA) as the best project to meet the Authority’s capacity and energy needs, while providing the greatest value to LIPA’s customers and the environment. Caithness II is to be built on an industrially-zoned parcel in Yaphank, in the Town of Brookhaven, where the company presently operates the 350-MW Caithness Long Island Energy Center.
As an experienced developer and operator with diverse experience in renewable energy such as geothermal, wind and solar, as well as environmentally-friendly fossil-fueled projects, Caithness Energy has established itself as a national leader in helping address global climate change. Its clean energy projects include the Shepherds Flat Wind Farm, one of the largest wind farms in the world, several utility-scale solar projects, and the Caithness Long Island Energy Center, NY’s cleanest and most energy efficient natural gas-fired power plant.
“We at Caithness are happy that LIPA has placed its trust in us to permit, construct, commission and operate what will be Long Island’s newest, cleanest, most efficient and most environmentally-advanced power generating plant,” said Ross D. Ain, President of Caithness Long Island II, LLC. “The new facility will build upon the enormous benefits already being enjoyed by Long Islanders as a result of our first facility, which was commissioned in August 2009 and now produces nearly 20% of the power generated on Long Island. And since the existing plant’s emissions have averaged less than 5% of the emissions from the older plants serving Long Island’s needs and less than half of those allowed by its air permit  one of the strictest for any power plant operation in New York together, both plants will present significant improvements in Long Island’s air quality and have a positive impact on the critical issue of climate change.”
Representing a new paradigm in clean, efficient power plants, the Caithness II project was selected as part of LIPA’s 2010 Generation and Transmission Request for Proposals. The determination was made after an extensive and highly competitive analysis of 45 projects offered by 16 entities responding to the RFP. The evaluation considered the attributes of all proposals including operational flexibility, environmental impacts, interaction with other power supply resources, and the ability to get the project developed on time.
In addition to cost advantages to LIPA’s ratepayers, Caithness was chosen because it gives LIPA flexibility to allow for the retirement and/or repowering of older, inefficient plants while helping the Authority meet its needs for new capacity. Caithness II will also help improve the region’s air quality since it will produce substantially less emissions than the older plants LIPA currently relies upon, many of which are decades old. LIPA also cited Caithness’s record as a proven and reliable developer, the strong community support the company garnered for its first Long Island plant, and its record as a good corporate citizen in the communities in which it operates.
LIPA’s staff worked with the New York Power Authority (NYPA) during the planning and RFP process. NYPA concurred and supports LIPA’s decision in selecting the Caithness II project as being the best choice in meeting LIPA’s needs to improve system efficiency, reduce air pollutant emissions and prepare Long Island’s electric system for expanded use of renewable energy resources.
Caithness II will employ combined-cycle technology, a highly efficient means of generating electricity since it captures exhaust heat from the combustion turbine, which would ordinarily be dispersed into the air. Instead, heat is converted to steam to power a steam turbine generator and produce additional power, thus maximizing energy efficiency and minimizing fuel costs. As the most energy efficient plant on Long Island, Caithness II will further help reduce overall fuel consumption and produce fewer air emissions while providing additional supplies of much needed cost-effective electricity.
As with the existing plant, Caithness II will employ a closed-cycle, air-cooled condenser in its steam cycle, resulting in 95% less water consumption than other plants on Long Island, saving millions of gallons of water from being depleted from Long Island’s aquifers each year.
In addition to its substantial environmental benefits, Caithness II will provide considerable advantages to the local economy. During the expected 27-month construction period, it is anticipated that the project will produce over 500 construction jobs at its peak, yielding over 1.5 million man-hours of construction labor resulting in nearly $200 million in payroll and benefits. Locally, that translates into $400 million in direct expenditures for taxes, local goods and services, or over $800 million with multiplier effects.
The first Caithness project received widespread support among locally-elected officials, civic and business leaders, trade unions, environmental groups and several editorial pages. In 2011, Caithness received the first-ever “Clean Energy” award from Vision Long Island, the region’s smart growth planning organization. The Caithness property is an ideal location since it is in close proximity to existing transmission lines and a gas distribution pipeline. It is not within any environmentally-sensitive area, and the nearest residences are approximately one half-mile away.
“We appreciate the Town of Brookhaven’s consideration of the siting of an additional power resource within an industrially-zoned parcel and look forward to working with the local community in reviewing our plans going forward,” Mr. Ain concluded.
About Caithness Long Island II, LLC
Caithness Long Island II, LLC is a subsidiary of Caithness Energy, L.L.C., a privately held, New York-based independent power producer. For over 25 years, Caithness has been a pioneer in the development of clean, reliable energy. More information can be found at: www.caithnesslongisland.com.

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