YAPHANK, NYÂ July 17, 2014Â Â The Town of Brookhaven Industrial Development Agency (IDA) has unanimously approved an inducement resolution for the proposed Caithness Long Island II power project to be built in Yaphank. The inducement from the IDA includes an abatement of real property taxes as provided for in a 25-year payment in lieu of taxes (PILOT) schedule adopted by the IDA, as well as an exemption of certain sales and use taxes associated with the construction of the plant. Under the terms of its proposal to the Long Island Power Authority (LIPA), Caithness Long Island II, LLC will directly pass the benefits provided by the IDA through to LIPA’s ratepayers.
Caithness II is a proposed 750-megawatt (MW), natural gas-fired power plant that will employ state-of-the-art, efficient combined cycle electric generation technology. The Caithness II project was selected as the finalist by LIPA in a highly competitive procurement process because it will provide the best value to LIPA’s ratepayers.
The PILOT agreement will provide a certainty of annual revenue totaling more than $446 million over the 25-year PILOT agreement term to local taxing jurisdictions including the Longwood Central School District (the largest school district in the Town of Brookhaven), the Town of Brookhaven, the Yaphank Fire District and other municipal entities. Caithness estimates that the project is expected to save ratepayers more than $80 million in annual fuel savings.
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. The project will continue to generate significant local economic benefits over its 30-year, plus, economic life.
“The benefit package approved by the Brookhaven Town IDA for Caithness II is a significant part of the overall benefit of this project to Long Islandâ€™s electric users,” said Ross D. Ain, President, Caithness Long Island, LLC. “We now look forward to finalizing our arrangement with LIPA and commencing construction next year.”
Construction of Caithness II is expected to begin in the latter part of 2015 and be completed in 2018.
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 atÂ www.caithnesslongisland.com.