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Brookhaven Town Board Accepts Final Environmental Impact Statement for Caithness II

YAPHANK, NY  May 6, 2014  The Brookhaven Town Board today voted to accept the Final Environmental Impact Statement (FEIS) prepared for the proposed Caithness Long Island, II, LLC power plant project, a 750-megawatt (MW) combined cycle, natural gas-fired power plant to be built on industrial zoned property in Yaphank. The FEIS accepted today by the Town Board determined that Caithness II will not have any adverse effect on the environment.
The extensive environmental review process took into account air quality, noise, traffic, visual impacts, economic and socioeconomic considerations. Extensive public comments were received over a two-month comment period and a public hearing was held on January 28, 2014.
In July 2013, Caithness II was selected as the finalist by LIPA after an extensive analysis of 45 projects submitted in a highly competitive request for proposal process. LIPA chose Caithness II as the best project to meet the Authority’s capacity and energy needs, while providing the greatest value to its customers and the environment. As a private developer, Caithness will assume all the risks of construction, completion, and operating and maintenance costs over the 20-year life of a power purchase agreement to be negotiated later this year.
Because combined cycle technology operates in a highly efficient manner, Caithness II estimates that the project is expected to save ratepayers approximately $80 million in annual fuel savings. Recent analysis shows that the existing 350 MW Caithness plant in Yaphank, commissioned in 2009, saved Long Island ratepayers approximately $108 million in natural gas costs over the last three years, equal to one-percent of LIPA’s yearly revenue requirements to operate and maintain the system.
Caithness II is projected to have capital costs of approximately $1.09 billion, and is expected to generate $400 million in local economic activity. The project will create more than 500 construction jobs at its peak during the 28-30-month construction period, resulting in payroll and benefits of nearly $200 million for local workers. Caithness is working with the Brookhaven IDA on a payment in lieu of taxes agreement (PILOT) that will provide a certainty of additional revenue for the Town of Brookhaven, the local school and fire districts, and other municipal taxing jurisdictions over a 20-year period.
Caithness II will operate under the strictest air permits for any power plant operating in New YorkState; similar to the present Caithness plant which produces 95% fewer emissions than those generated by older plants serving the region.
“The accepting of the FEIS is a major step forward in bringing a greater supply of clean, economical and reliable electric power to Long Island that will not only benefit ratepayers in terms of fuel cost savings, but will also help improve the region’s air quality by reducing the use of old, obsolete, polluting and inefficient power plants many of which are more than 50-years old,” said Ross D. Ain, President of Caithness Long Island II. “We are pleased that after careful review of the Caithness II project, the Brookhaven Town Board accepted the FEIS based on its environmental attributes, recognizing that the project will not have any adverse environmental effects.”
Caithness has conducted extensive community outreach meetings, briefings and plant tours with a variety of stakeholders including business, civic and environmental groups, labor leaders and government officials. To date, the project has received the support of the New York League of Conservation Voters, the Long Island Association, the Hauppauge Industrial Association, Long Island Metro Business Action (LIMBA), the Building and Construction Trades Council of Nassau and Suffolk Counties, the Sustainability Institute at Molloy College; the Neighborhood Network, Vision Long Island, the Board of Education of the Longwood Central School District, and several local civic associations. In March 2013, the Long Island Regional Planning Council designated the proposed Caithness II power plant project as a “Project of Regional Significance,” citing the considerable regional benefits it will bring to Long Island.
LIPA forecasts that its total required capacity established by the New York Independent System Operator (NYISO) will increase by more than 700 MW from 2014 to 2018, and by more than 1,000 MW from 2014 to 2022. And, although LIPA recently experienced a slight decrease in its total sales of electricity, its peak loads (which occur on the hottest days in the summer and determine the need for additional capacity) have increased and are projected to continue to grow in the future.
LIPA projects that without the addition of Caithness II and other supply initiatives, it will have a capacity deficiency of 611 MW in 2018. Caithness II will also provide the necessary capacity to allow for the repowering of the 1950s era plant in Port Jefferson.
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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