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The Long Island Power Authority, National Grid and state regulators have reached an agreement to install technology at the Port Jefferson Power Plant designed to protect fish, while saving $100 million or more over other alternatives.
One of Long Island's biggest, oldest power plants has got a new lease on life, after the Department of Environmental Conservation agreed to grant it a new permit.
The Long Island Power Authority, National Grid and state regulators have reached an agreement to install technology at the Port Jefferson Power Plant designed to protect fish, while saving $100 million or more over other alternatives.
The New York State Department of Environmental Conservation on June 15 agreed to grant a permit for the 350-megawatt power plant, as long as National Grid installs nets and variable speed pumps to protect fish.
The technology, expected to cost $15 million to $20 million, is far cheaper than cooling towers that the DEC earlier had said it favored for larger power plants, potentially forcing older generators to close.
The public has 30 days to comment on or challenge the DEC's decision regarding the five-year permit for the Port Jefferson plant, built in the 1960s.
"What we ended up with is a very good solution at a very modest cost," said Bob Teetz, National Grid's vice president of environmental services.
He said LIPA would reimburse National Grid for costs related to the upgrade, as long as the plant is under contract to LIPA.
"The tab is picked up," Teetz said. "Ultimately, we have a contract with LIPA. And we get a return on all the investments that are made there."
LIPA Vice President of Power Markets Paul DeCotis said the authority plans to go ahead with the improvements, in order to buy power from the plant at least through its current contract, which expires in 2013.
"Whether or not we continue to contract for the plant post May 2013 is currently in negotiation," Decotis said. "We have to meet the environmental permit requirements between LIPA and National Grid. If we want to continue to draw output from the plant, they have to make the investment."
DeCotis said LIPA must pick up only the cost of the technology for as long as the plant supplies the authority with power.
LIPA described the agreement as a compromise that would make it feasible to modify the plant at far less cost than other alternatives.
"We were able to figure out something that would comply and be at a reduced costs for our customers," LIPA spokeswoman Vanessa Baird-Streeter said.
Environmentalists, who argued the Port Jefferson generators killed massive amounts of fish, came on board, praising the DEC solution.
"Reducing finfish and shellfish mortality in Long Island Sound is an economic and environmental benefit for all," said Citizens Campaign for the Environment Executive Director Adrienne Esposito.
Kyle Rabin, director of Network for New Energy Choices, said the "agreement not only makes sense from an ecological perspective, but also from an economic point-of-view."
The DEC's previous interpretation of regulations, requiring costly cooling towers, threatened to force National Grid to retire this, as well as other, power plants.
The DEC passed regulations requiring plants using 20 million gallons or more of water daily to construct cooling towers that would recycle water, protecting fish.
The towers, however, could easily cost $120 million to $150 million at Port Jefferson, making the plant economical.
Special systems of fine mesh nets, another option, also could have been prohibitively costly.
"That was an unproven technology," Teetz said. "We had a long discussion with the DEC about that. We felt in some cases, the fine mesh screen could do more harm."
National Grid instead proposed an alternative that it said could be as much as 90 percent as effective in reducing fish kill with coarse mesh screens, preventing large fish from being swept up along with water.
Variable speed pumps would let the plant use only the water needed rather than cycling through millions of gallons unnecessarily.
"Right now the pumps are on or off. Even if the [plant] operates at a low level, the pumps are on at full power. We're pulling in way more water than we really need," Teetz said. "By putting in variable speed pumps, we'll be able to throttle down the water we need to match the level of power the plant is operating at."
He said since the plant doesn't operate continuously, National Grid can reduce its water intake significantly with pumps.
"That is ideal for this facility," Teetz said. "It does not operate that much. It's a peaking plant. It operates ten to 15 percent of the time."
The DEC already said it believes cooling towers must be installed at the 384-megawatt E.F. Barrett plant in Island Park, although National Grid is appealing that decision. National Grid also is in talks with the DEC about how to modify its Northport generator to comply with regulations.
Credit: Claude Solnik
(Copyright 2011 Dolan Media Newswires)