LONG ISLAND’S CLEANEST POWER-GENERATING PLANT TO BECOME EVEN CLEANER, HELPING TO ADDRESS THE CRITICAL ISSUE OF CLIMATE CHANGE

NYSERDA contract with Caithness will improve regional air quality by reducing greenhouse gases, consistent with Governor Cuomo’s call to reduce greenhouse gas emissions 

Reduced emissions will also save LIPA ratepayers millions of dollars in emissions credit costs

YAPHANK, NY  January 4, 2016  Caithness Long Island, LLC, owner of the 350-megawatt (MW), combined-cycle, natural-gas-fired Caithness Long Island Energy Center, has been awarded a contract through the New York State Energy Research and Development Authority (NYSERDA) to reduce carbon dioxide (CO₂) emissions. The NYSERDA award is consistent with Governor Andrew M. Cuomo’s recent pledge to lead the nation in addressing climate change, and reducing greenhouse gas emissions 40% from 1990 levels by 2030, and 80% by 2050. The Governor was joined by former Vice President Al Gore on October 8, 2015, in announcing new actions to reduce greenhouse gas. Click here to read more »

 Decision finds that PSEG-LI criteria to determine transmission upgrades needed for Caithness II were unnecessarily stringent and violated NYISO tariffs; required interconnection upgrades will cost far less using proper criteria 

YAPHANK, NY  October 2, 2015  The Federal Energy Regulatory Commission (FERC), the principal energy regulatory body in the United States, has ruled that PSEG Long Island’s (PSEG LI) criteria for determining the electric transmission upgrades required to reliably and safely interconnect new generation facilities violate FERC’s Orders and the New York Independent System Operator’s (NYISO) tariffs. FERC’s decision (Caithness Long Island II, LLC v. New York Independent System Operator, Inc.) is a repudiation of the special transmission interconnection requirements that PSEG-LI had added onto the standard NYISO criteria for determining the upgrades required to connect power plants and undermines PSEG LI’s invalid and unsupported claims that Caithness II would increase electric rates on Long Island.

The rejected PSEG-LI criteria would have required the Caithness II project to incur hundreds of millions of dollars in transmission upgrade costs to safely and reliably connect the new plant to Long Island’s electric grid. As a result of this decision, there will only be minimal transmission upgrade costs, and the Long Island electric ratepayers will reap the benefits. Indeed, a study by General Electric Consulting has previously found that, due to its high efficiency, Caithness II is expected to save Long Island an average of $192 million annually or over a billion dollars in wholesale energy costs over the first six full years of operation under the Caithness proposal that the Long Island Power Authority (LIPA) management previously selected in connection with LIPA’s 2010 Request for Proposals.

“Not only is this ruling a victory for Caithness II, it is a triumph for Long Island ratepayers,” said Ross Ain, President of Caithness Long Island II, LLC. PSEG-LI has been blocking Caithness II with false claims about high transmission costs to connect Caithness to the electric grid and claims about an approximately 6% increase in rate hike without any supporting documentation. The reality is that Caithness II would save ratepayers money, provide much needed economic development, hundreds of jobs and increased tax revenues to support Long Island’s schools, libraries, fire districts and local government. The new plant will also substantially reduce Long Island’s imports of expensive off-island electricity from power plants owned by PSEG and others in New Jersey, Connecticut and upstate New York, as well as significantly reduce air and water pollution from the old, inefficient plants on Long Island.

LIPA management selected Caithness II in 2013 for its value to Long Island ratepayers and the environment. It is a combined-cycle 750-MW natural gas-fired plant that will be built adjacent to the existing Caithness facility in Yaphank. PSEG-LI recommended that the project be put on hold in August 2014. Caithness II has widespread support from environmental, business, government and labor leaders, and is expected to save ratepayers in excess of $192 million in annual electricity costs, in addition to creating significant environmental and economic benefits.

About Caithness Long Island, LLC
Caithness Long Island, LLC, is a subsidiary of Caithness Energy, LLC, 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 atwww.caithnesslongisland.com.

Contact: Don Miller
West End Strategies, Ltd
516-330-1647
westendstrategies@gmail.com

More than 200 supporters rally to emphasize project’s benefit to economic development, the environment and L.I.’s energy security 

YAPHANK, NY  September 10, 2015 With Long Island’s most efficient, cleanest and most water-conserving power plant as a backdrop, New York State Senator Thomas Croci, Chair of the Senate Committee on Veterans, Homeland Security and Military Affairs, along with leadership from the Building and Construction Trade Council of Nassau and Suffolk Counties, the Coalition for a Brighter Long Island, environmental and clean-energy advocates, and others, renewed calls for Governor Cuomo to insist that LIPA and PSEG-LI move forward with the Caithness II power plant without further delay.

In all, more than 200 supporters gathered at the rally at the Caithness Long Island Energy Center to advocate for the Caithness II project and the benefits it will bring to Long Island in terms of the economy, the environment, and the security of the region’s electric grid.

Senator Croci spoke at the rally after touring the existing Caithness plant with Senator Joseph Griffo, Chair of the Senate Energy and Telecommunications Committee.

“Energy and infrastructure are crucial to our economic future and survival on Long Island. Yet, nearly 50 percent of Long Island’s electricity comes in on cables from off-island sources, which jeopardizes Long Island’s independent energy supply,” said Senator Croci. Long Islanders deserve a resilient and reliable power supply that won’t be compromised when threats arise. Modern technology has made it possible to locate power plants inland, so that we don’t put residents’ power in jeopardy during events like Superstorm Sandy. I urge Governor Cuomo to support the Caithness II project to secure our energy infrastructure, provide relief for ratepayers, and drive economic growth and prosperity on Long Island and in New York State.

Unlike the Caithness plant, three of Long Island’s major power plants are vulnerable to severe storms because two of the plants (those in Northport and Port Jefferson) are located on the Long Island Sound, while the other (E.F. Barrett) is situated along a coastal bay in Oceanside. Importantly, the Caithness plant is located 100 feet above mean sea level, and more than five miles from the Long Island Sound or the South Shore bays. Caithness II would be located adjacent to the existing Caithness plant.

Neal Lewis, Executive Director of the Sustainability Institute at Molloy College, and a locally recognized environmental leader, stated, “The ongoing threat to our environment from continued reliance on old power plants (those previously owned by the now-defunct Long Island Lighting Company) must be eliminated. These aging plants should be replaced by ones that generate the type of clean, modern power that Caithness II can provide.” Mr. Lewis also noted that Caithness II’s operational flexibility, the ability to power up and down quickly, supports solar and wind energy projects providing clean, efficient power during times when the sun doesn’t shine and the wind isn’t blowing.

Also in attendance at the rally was Eric Alexander, Executive Director of Vision Long Island, the region’s smart-growth-planning organization, which recognized the first Caithness power plant with the organization’s inaugural Clean Energy Award in 2011.

“As president of the Longwood School Board, I know that Caithness II represents a continuing commitment by Caithness Energy to our local schools,” said Dan Tomaszewski, who is also the founder of the Coalition for a Brighter Long Island. Caithness II will contribute $13 million annually to the Longwood Central School District tax base, improving the education for our children, without increasing the tax burden. Caithness II is a necessary addition to our community.

In a statement, Dick O’Kane, President of the Building and Construction Trades Council of Nassau and Suffolk Counties, stated that, Caithness II will put Long Islanders to work to provide the region with affordable and reliable energy, and called on Governor Cuomo to step in and ensure that Long Island stops exporting jobs, and moves ahead with Caithness II.

Caithness II will create more than 500 construction jobs during the 30-month build cycle, and generate in excess of $400 million in economic activity during the 20-plus-year-life of the plant.

“Caithness is pleased to have the support of a number of influential Long Island leaders who recognize the tangible environmental and economic benefits Caithness II will create throughout the region,” said Ross Ain, President, Caithness Long Island, LLC. “The Caithness II project will also help ensure Long Island’s energy independence, while adding a significant layer of strength to the electric grid, especially when major storms hit.”

Other Caithness II supporters attending the rally included Neil Foley, Brookhaven Town Councilman; Dan Losquadro, Brookhaven Town Superintendant of Highways; Robyn Fellrath, representing Brookhaven Town Councilwoman Connie Kepert; Edward Flood, Chief of Staff to NY State Assemblyman Dean Murray; Bill Peters, Commissioner, Yaphank Fire District; Roy LoBocchiaro, Commissioner, Ridge Fire District; Dr. Michael Lonergan, Superintendant of Schools, Longwood Central School District; Michael Loguercio, Penny McGrath, Frank Muracca and Maureen Silvestri, members of the Board of Education, Longwood Central School District; Daniel Walcott, Political Director & NY District Council, Millwrights Local 740; Frank Ippoliti, Council Representative for Millwrights Local 740; Mike Cavanaugh, Vice President for the District Council of Carpenters; Mario Mattera, Business Agent for the Plumbers Local Council 200; Anthony Fagiolo, Political Director, Heat and Frost Insulators Local 12; Steve McInnis, President, The New York City District Council of Carpenters; Peter Zarcone, General Building Laborers Local 66; Joseph Cavalieri, General Building Laborers Local 66; Kevin Harvey, Business Manager, International Brotherhood of Electrical Workers, Local 25; members of the Building and Construction Trades Council of Nassau and Suffolk Counties; the Coalition for a Brighter Long Island and others.

About Caithness Long Island, LLC

Caithness Long Island, LLC, is a subsidiary of Caithness Energy, LLC, 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.

Contact: Don Miller
West End Strategies, Ltd
516-330-1647
westendstrategies@gmail.com

Yaphank power plant is the region’s cleanest, most energy efficient, most water-conserving plant; conserves enough natural gas to heat the equivalent of 95,000 L.I. homes 

YAPHANK, NY  August 17, 2015  Long Island’s most modern, efficient and cleanest burning power plant on Long Island, the Caithness Long Island Energy Center (Caithness), has saved Long Island Power Authority (LIPA) ratepayers more than $235 million in fuel costs since beginning commercial operations in August 2009. The savings are based on fuel costs LIPA would have incurred had it relied solely upon the existing fleet of power plants, which were built in the 1950s, ’60s and ’70s, and formerly owned by the now-defunct Long Island Lighting Company (LILCO). Caithness has also reduced carbon dioxide (CO₂) emissions by 2.5 million tons, saving LIPA ratepayers more than $7.8 million in emissions credit costs based upon emissions LIPA would have incurred had it relied solely upon its existing fleet of power plants. Click here to read more »

YAPHANK, NY  July 29, 2015  Continuing its commitment to assist local high school students, Caithness Long Island, LLC has awarded $25,000 in scholarships to 21 graduating seniors from Bellport, Longwood, and Patchogue-Medford high schools. The annual Caithness Long Island Energy Center Scholarship has assisted over 200 students since its inception in 2007, and has awarded more than $250,000 in total scholarship funds. The scholarship recipients are selected by their local school district based on the students’ academic achievements and their interest in pursuing college studies in science, engineering, or the environment.

The scholarships were presented at the senior awards ceremonies held at the end of the school year at the three high schools, which are in proximity to the Caithness Long Island Energy Center, a 350-megawatt, natural gas-fired power generating plant in Yaphank.

“Caithness is delighted to provide financial support for students continuing their education in science, engineering, and environment studies,” said Ross D. Ain, President, Caithness Long Island, LLC. “We extend our very best wishes to this year’s Caithness Long Island Energy Center Scholarship recipients for their continued academic success as they begin college this fall.”

Caithness Long Island Energy Center employs state-of-the-art combined cycle power generation technology, which provides more than 20% of the power generated on Long Island, and is the region’s cleanest, most energy-efficient and water-conserving plant. Beginning commercial operations in 2009, the Caithness Long Island Energy Center has saved the Long Island Power Authority’s (LIPA) ratepayers more than $235 million in fuel costs, while improving the local air quality by relying less on older plants that utilize inefficient, decades-old technologies.

In addition to the annual scholarship program, Caithness’s commitment to education includes internships, job shadowing programs, and plant tours to teach local students about modern power generation technology, affording them the opportunity to consider careers in energy, engineering and related fields. Caithness also supports several environmental organizations, nonprofit groups and a number of community-based activities throughout the Town of Brookhaven and across Long Island.

The recipients of the 2015 Caithness Long Island Energy Center Scholarships are:

Patchogue-Medford High School

Bellport High School

Longwood High School

About Caithness Long Island, LLC
Caithness Long Island, LLC is a subsidiary of Caithness Energy, LLC, 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.

Contact: Don Miller
516-330-1647 (cell)
westendstrategies@gmail.com

Decades-old plants deemed “grossly inefficient” and “environmentally unfriendly”

Report supports moving forward with the new and highly efficient plants like the proposed Caithness II power plant in Yaphank 

YAPHANK, NY  July 21, 2015  Citing inefficiencies, obsolescence and environmental unfriendliness, among other critical factors, a new report assessing the current National Grid-owned plants on Long Island calls for the immediate retirement of these aging facilities as soon as new generating capacity can be in place. The study, called the Survey of National Grid Generation Formerly Owned by LILCO, was conducted by energy industry veteran Raul Rodriguez and reviewed the fleet of power plants built by the Long Island Lighting Company (LILCO), and now owned and operated by National Grid The plants examined in the report supply electricity to the Long Island Power Authority (LIPA) and were built in the 1950s, ’60s and ’70s.

Mr. Rodriguez’s in-depth study examined National Grid’s three baseload steam plants at E.F. Barrett (Island Park), Northport and Port Jefferson, along with 39 natural gas and diesel-fueled peaking plants at 11 sites throughout Nassau and Suffolk counties.

The report firmly supports the replacement of the decades-old generators with new, modern, highly efficient power stations such as the existing 350-megawatt (MW) combined cycle, natural gas-fueled Caithness Long Island Energy Center in Yaphank, and the proposed 750-MW Caithness II project. Caithness II was selected by LIPA in 2013 as part of a highly competitive bid process because it will provide the best value to Long Island ratepayers and the environment. The project presently has many of the necessary environmental and municipal approvals to begin construction. In August 2014 PSEG-Long Island (PSEG-LI) recommended that the project be put on hold.

“I was shocked to learn of the horrendous impact on marine life caused by these legacy plants,” said Richard Amper, Executive Director of the Long Island Pines Barrens Society. “This impact goes well beyond clean air and concern about climate change.”

“The high mortality rate of fish eggs and larvae and the harmful effect of thermal pollution are astounding and unacceptable to sustaining marine life,” said Neal Lewis, Executive Director of the Sustainability Institute at Molloy College. “This threat to the marine ecosystems from the old technology of once-through-cooling is unacceptable and another compelling reason why the old LILCO plants must either be retired without further delay or replaced with new technology that does not require once-through-cooling.”

“We cannot continue to rely on decades-old plants that threaten marine life and the air we breathe,” said Brookhaven Town Councilwoman Connie Kepert. “In addition to the ongoing environmental hazards created by these obsolete plants, relying on them jeopardizes the reliability of Long Island’s power grid. Long Island needs clean, modern plants like the proposed Caithness II project in Yaphank.”

Natural gas-fired combined cycle generation is the most advanced power generation technology available today and utilizes much less fuel and produces significantly fewer emissions than power plants built decades ago, such as the National Grid plants covered in the survey. The existing and proposed Caithness plants employ state-of-the-art air cooling. This saves billions of gallons of water from being extracted from Long Island’s aquifers, the principal source of drinking water in Nassau and Suffolk counties, and avoids the severe environmental damage associated with the withdrawal of vast amounts of water from local waterways for cooling.

Highlights of the report, which can be found in its entirety at http://caithnesslongisland.com/?p=455 include:

Environmental Impacts

Three major steam turbine baseload plants, E.F. Barrett, Northport and Port Jefferson, are among the oldest in the fleet and pose the most threats to the environment. All three plants are located on the coasts of Long Island (E.F. Barrett on Barnum’s Channel in the Western Bays, Northport on the Long Island Sound and Port Jefferson on Port Jefferson Harbor) and utilize once-through cooling systems that draw massive quantities of water through heat exchangers in the plant. Then, the heated water is returned to the body of water resulting in adverse changes to the natural ecosystem. The initial water intake causes great harm to local fisheries through the entrapment of billions of larvae and fish eggs in the heat exchangers and the impingement of thousands of fish on the intake screens installed to protect the plant equipment, according to reports issued by the New York State Department of Environmental Conservation (NYSDEC).

Because of the age of the steam plants and the old, obsolete technologies employed, the report deemed the National Grid plants to be significant sources of air pollution, emitting orders of magnitude more air pollutants than a modern base load, combined cycle power plant.

Emissions data obtained from filings with the NYSDEC reveal a sharp contrast between emissions from the three National Grid steam plants and the Caithness Long Island Energy Center, which commenced commercial operations in 2009, and presently provides more than 20% of the power generated on Long Island. The Caithness plant produces nearly 80% less nitrogen oxide (NOx), 77% fewer particulates and more than 98% less carbon monoxide (CO) per unit of electric output than the existing National Grid steam plants operating on Long Island.

Susceptibility to Coastal Storms

Since all three National Grid steam plants are sited on bodies of water, the locations make these plants highly susceptible to flooding from coastal storms, as evidenced by hurricanes Irene and Lee in 2011 and super storm Sandy in 2012. Many power plants throughout the region experienced significant damage and extended outages as a result of these storms. The advent of global climate change and rising sea levels raise serious concerns about the resiliency and reliability of the plants during a major coastal flooding event. The report also noted that several cables that feed power to Long Island similarly experienced outages during these storms, leaving the grid exceptionally vulnerable to being able to deliver sufficient power to meet the region’s everyday demand.

Obsolescence

The age of the existing National Grid plants serving Long Island are cause for concern with respect to reliability and the increased cost to operate and maintain them. Replacement parts for the old equipment are more costly and harder to find. Outdated technologies often require plant operators to manually perform certain tasks and manipulate steam and oil valves in order to make the plants run. Compared to the advanced automated plants being built today, the labor intensive operations performed at Long Island’s old plants is slower, more prone to fuel leaks and offers a less consistent ramping rate to deliver power to the grid. Also of great concern is the substantial loss of in-house knowledge of operating and maintaining these plants safely and reliably due to the attrition of power plant operators over the years. Additionally, the manufacturers of the original equipment similarly have increasingly fewer personnel trained in the old technology to properly address repair issues when machinery malfunctions or breaks down.

Peaking Plants�

Of the 39 oil-fired National Grid peaking plants, formerly owned by LILCO, all but three were installed between 1962 and 1975. These plants, on 11 sites across Long Island, help provide power during peak demands. As with the large steam plants, the peaking plants pose many of the same problems in terms of obsolescence and environmental impacts. And, like the older steam plants, the expertise on operating these facilities lies within an aging workforce. The study calls into question how such operational knowledge is passed on to personnel as the workforce turns over.

High operating temperatures and stress experienced by the rotating components of the gas turbines of the peaking plants result in finite life for the rotors of the gas turbines. Many of the gas turbines on Long Island are approaching the end of that life and replacement rotors can cost upwards of $500,000 per unit and are scarce in the marketplace. Similarly, as with the old steam plants, replacement parts have become increasingly costly and more difficult to source.

“The study clearly underscores the critical nature of the dangers of continuing to rely on plants that are obsolete and pose threats to the environment and the reliability of Long Island’s electrical grid,” said Ross D. Ain, President of Caithness Long Island, LLC. “New, state-of-the-art generation like Caithness II will help ensure the reliability of the grid while providing tangible benefits including cost-effective power generation, cleaner air, improved fisheries and less polluted waterways. We at Caithness concur with the study that the fleet of old power generators, formerly owned by LILCO, need to be retired without delay and replaced with new, efficient, environmentally cleaner generation.”

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.

Contact:Don Miller
516-330-1647 (cell)
westendstrategies@gmail.com

National Grid Generation Asset Summary Final

Court cites lack of legal standing and failure to produce hard facts that Caithness II would bring harm to the Village 

YAPHANK, NY ? May 4, 2015 ? On Friday, May 1, 2015, New York State Supreme Court Justice Jerry Garguilo dismissed the Village of Port Jefferson’s lawsuit seeking to vacate the special use permit issued by the Town of Brookhaven for the Caithness II power plant project in Yaphank. The Village challenged an environmental review of the Caithness II project and the Town’s approval of the permit on July 15, 2014. The court ruled that the Village of Port Jefferson failed to show that it had the legal standing to contest the actions of the Brookhaven Town Board in connection with the Caithness II project and that claims that Caithness II would harm the Village were based solely on “speculation and conjecture.”

The court noted that Caithness II underwent an extensive public environmental review process as required under the State Environmental Quality Review Act (SEQRA), which consisted of a comprehensive environmental review of the project, including land use, ground and surface water impacts, air quality, noise, traffic and visual impacts and economic and socioeconomic considerations. On June 10, 2014, the Brookhaven Town Board issued findings based on the Final Environmental Impact Statement (FEIS) prepared for the Caithness II project and concluded that the project “avoids or minimizes adverse environmental impact to the maximum extent practicable, and therefore will not cause any significant adverse environmental impacts.”

The Village of Port Jefferson had alleged, and failed to prove, that Caithness II, located more than 10 miles away from the Village, would cause harm to the Village. The court issued a lengthy, detailed decision, and noted that it undertook a “detailed review of the record and pleadings” and ruled that Caithness II would have no environmental impact on the Village. The court described the Village’s claims that is would suffer harm as “unsubstantiated conjecture”, and dismissed the lawsuit in its entirety.

Caithness II is a 750-MW, natural gas-fired power plant that will employ state-of-the-art, highly efficient combined cycle electric generation and air-cooled technology, and was selected by LIPA in 2013 as part of a highly competitive bid process because it will provide the best value to Long Island ratepayers and the environment. The project presently has many of the necessary environmental and municipal approvals to begin construction. PSEG-Long Island (PSEG-LI) has since recommended that the project be put on hold pending completion of its Integrated Resource Plan (IRP).

A recent study conducted by General Electric Consulting concluded that Caithness II would provide immediate and significant economic and environmental benefits. The GE study estimated that Long Island ratepayers would save more than $1 billion in wholesale electricity costs during the first six years of operation. In addition, the study found that the Caithness II plant would create numerous, tangible environmental benefits, including considerable reductions in emissions of nitrogen oxide (NOx), sulfur dioxide (SOx) and carbon dioxide (CO2) by displacing existing older, more polluting power resources. The GE study also noted that Caithness II will increase operational flexibility of the electrical system, thus helping support the integration of renewable energy sources onto the grid.

“Caithness is satisfied with Justice Garguilo’s ruling that the Village of Port Jefferson lacked the legal standing to challenge the actions of the Brookhaven Town Board with respect to the issuance of a special use permit to allow the construction and operation of the Caithness II power plant project in Yaphank,” said Ross D. Ain, President of Caithness Long Island, LLC.

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.

Findings call into question PSEG LI’s decision to postpone construction of approved Yaphank plant

Yaphank, NY  April 17, 2015  The findings of a study from General Electric Energy Consulting released today calls into question PSEG Long Island’s (PSEG-LI) decision to postpone construction of the Caithness Long Island II power plant (Caithness II). The study finds that Caithness II, previously selected by the Long Island Power Authority (LIPA), would from day one produce significant cost savings on Long Island and in New York State, offer significant environmental benefits, reduce the need for more expensive imported power from New Jersey and Connecticut, and would be a highly reliable and flexible power generation source.

General Electric analyzed Caithness II using the industry-leading GE MAPS (Multi Area Production Simulation) software application to estimate the Long Island, New York State and regional electricity cost impacts, environmental impacts, and system impacts of the 750-megawatt (MW) natural gas-fired plant.

Ratepayer Savings

• The report concluded that due to its high efficiency, Caithness II is expected to save Long Island an average of $192 million annually or over a billion dollars in wholesale energy costs over the first six full years of operation under the Caithness proposal that LIPA previously selected in its 2010 Request for Proposals. This savings is significantly more than the fixed costs LIPA would pay Caithness II under that proposal. Therefore, Caithness II provides immediate net cost savings to ratepayers. Ratepayer savings will be approximately 1% of current bills.
• In fact, the GE study estimated significant wholesale energy cost savings to the entire New York downstate area stemming from the operation of Caithness II.

Environmental Benefit

GE’s analysis concluded that Caithness II is expected to benefit the environment:

• Annual NOx emissions from electric power generation are estimated to decrease by about 23% on Long Island and 8% in New York State.
• Annual SOx emissions from power plants are estimated to decrease by about 37% on Long Island and 22% in New York State.
• Emissions of CO₂ from power generation are estimated to go down one million tons per year in the Northeast.

Therefore, Caithness II is estimated to have a positive effect on regional air quality and to significantly reduce emissions which contribute to climate change.

System Benefits

• The report shows that the electricity generated by Caithness II is estimated to displace energy generated by higher cost and less efficient generating units on Long Island, in New Jersey and Connecticut and that imports of electricity from New Jersey and Connecticut are estimated to be reduced by an average of 25%.
• According to data published by the New York Independent System Operator (NYISO), currently, approximately 50% of Long Island’s energy comes in on cables from off-island sources including the markets in New Jersey and Connecticut which are supplied in great measure by plants owned and operated by PSEG.

General Electric also concludes in the MAPS report that the addition of Caithness II is estimated to increase the operational flexibility of the electrical system, helping to support the integration of renewable technologies onto the grid.

“The GE report confirms the significant economic and environmental benefits of this plant to our region, and we urge LIPA and PSEG-LI to move it forward expeditiously,” said Ross D. Ain, President of Caithness Long Island, LLC. “From saving ratepayers money, to helping clean the air we breathe, to providing jobs and tax revenues to Long Island, by producing less expensive electricity here rather than importing electricity from New Jersey and Connecticut, this study clearly shows that Caithness II is the right solution for Long Island.” Mr. Ain added, “Caithness, not Long Island ratepayers, will bear all the risks of construction, completion, and operating and maintenance costs over the life of the plant.”

Additionally, Caithness II would require minimal new transmission upgrades to reliably deliver electricity, according to recent NYISO studies and confirmed by the Energy Initiatives Group (EIG), a leading electric power consulting company. EIG, in examining the project and LIPA’s filings to NYISO, concluded that the majority of the cost of system improvements that may be associated with Caithness II have been previously identified by LIPA as being required to address known existing conditions, such as load pockets east of Holbrook, without regard to the interconnection of Caithness II.

Caithness II is a 750-MW, natural gas-fired power plant that will employ state-of-the-art, highly efficient combined cycle electric generation and air-cooled technology. The Caithness II project was selected by LIPA in 2013 as part of a highly competitive bid process because it will provide the best value to Long Island ratepayers and the environment. It also has many of the required environmental and municipal approvals to begin construction. PSEG-LI has since recommended that the project be put on hold.

In addition to the cost-savings and environmental benefits, Caithness II is expected to generate $400 million in local economic activity. The project will create more than 500 construction jobs, resulting in payroll and benefits of nearly $200 million for local workers. Upon completion, the project will continue to generate significant local economic benefits.

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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