**Repowering of Cayuga and Dunkirk Generating Facilities**

The NYS Public Service Commission (Commission) is considering whether the coal-fired Cayuga generating station in Lansing, New York should be repowered by converting the facility to natural gas or if New York Electric and Gas (NYSEG) should be directed to implement transmission solutions to help ensure electric system reliability.  Additionally, the Commission is considering whether the coal-fired Dunkirk generating station in Chautauqua County, New York should be repowered or National Grid should be directed to implement transmission solutions to help ensure electric system reliability.

Informational Forums and Public Statement Hearings were held on July 15, 2013 at SUNY Fredonia, and on July 29, 2013 at Lansing Middle School.

All statements transcribed at the public statement hearings and all other comments received by the Commission became part of the record, and were reported to the Commission for its consideration.  All such comments will be posted for public viewing on the Commission’s website, at http://www.dps.ny.gov/.

Case Background – Cayuga Facility

In October 2012, the New York State Energy Highway Task Force recommended to Governor Cuomo that electric utilities be required to analyze repowering as an alternative to transmission system upgrades when a facility needed for reliability proposes to retire. The PSC has noted in other proceedings that careful planning for generator retirements is important for the maintenance of reliability at reasonable cost.

On January 18, 2013 the Commission issued an Order instituting a proceeding and requiring evaluation of generation repowering.  The Order:

• Recognizes that the New York State Energy Highway Task Force Blueprint noted reliability concerns with the potential retirement of the Cayuga coal plant and identified it as a potential candidate for repowering;
• Directed NYSEG to file the cost of transmission upgrades needed to maintain reliability, and solicit bids from the current owners of the Cayuga plant for the cost of out-of-market support needed to repower their plants at least at the minimum capacities needed to maintain reliability; and
• Directed NYSEG to evaluate all alternatives in terms of reliability and impacts on ratepayer costs, the environment, the economy, electric market competitiveness and any other relevant factors – and file its recommendations.

NYSEG has provided that requested information to the PSC.  These filings are now being reviewed by Staff of the Department of Public Service.  The PSC is expected to determine whether the Cayuga plant should be repowered, or if the transmission alternatives proposed by NYSEG should be adopted.  

For more information, or a copy of the fact sheet click here.

Case Background – Dunkirk Facility

In October 2012, the New York State Energy Highway Task Force recommended to Governor Cuomo that electric utilities be required to analyze repowering as an alternative to transmission system upgrades when a facility needed for reliability proposes to retire. The PSC has noted in other proceedings that careful planning for generator retirements is important for the maintenance of reliability at reasonable cost.

On January 18, 2013 the Commission issued an Order instituting a proceeding and requiring evaluation of generation repowering.  The Order:

• Recognizes that the New York State Energy Highway Task Force Blueprint noted reliability concerns with the potential retirement of the Dunkirk coal plant and identified it as a potential candidate for repowering;
• Directed National Grid to file the cost of transmission upgrades needed to maintain reliability, and solicit bids from the current owners of the Dunkirk plant for the cost of out-of-market support needed to repower their plants at least at the minimum capacities needed to maintain reliability; and
• Directed National Grid to evaluate all alternatives in terms of reliability and impacts on ratepayer costs, the environment, the economy, electric market competitiveness and any other relevant factors – and file its recommendations.

National Grid has provided that requested information to the PSC.  These filings are now being reviewed by Staff of the Department of Public Service.  The PSC is expected to determine whether the Dunkirk plant should be repowered, or if the transmission alternatives proposed by National Grid should be adopted.  

For more information, or a copy of the fact sheet click here.