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{{#Wiki_filter:1 1New York Energy Highway Task Force.Andrew M.CuomoNewYorkEnergyHighwayBlueprintNYEnergyHighway.com United States Nuclear Regulatory Commission Official Hearing Exhibit In the Matter of
{{#Wiki_filter:United States Nuclear Regulatory Commission Official Hearing Exhibit                                   NYS000448A Entergy Nuclear Operations, Inc.                                     Submitted: November 9, 2012 In the Matter of:
: Entergy Nuclear Operations, Inc. (Indian Point Nuclear Generating Units 2 and 3)
(Indian Point Nuclear Generating Units 2 and 3)
ASLBP #:07-858-03-LR-BD01 Docket #:05000247 l 05000286 Exhibit #:
ASLBP #: 07-858-03-LR-BD01 Docket #: 05000247 l 05000286 Exhibit #: NYS00448A-00-BD01                    Identified: 11/14/2012 Admitted: 11/14/2012                           Withdrawn:
Identified:
Rejected:                                         Stricken:
Admitted: Withdrawn:
Other: Originally Identified as BRD000007 New York Energy Highway Blueprint N .Y. G O V E R N O R Andrew M. Cuomo NYEnergyHighway.com Issued 2012 by the New York Energy Highway Task Force R UNNI NG F O OTE R 1 DRAFT CONFIDENTIAL
Rejected: Stricken: Other: NYS00448A-00-BD0111/14/2012 11/14/2012 Ori g inall y Identified as BRD000007 NYS000448A Submitted: November 9, 2012
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Contents                                                                                                Key to powering our economic growth is expanding our energy infrastructure.
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N.Y. GoverNor Andrew M. Cuomo 2012 State of the State Address 4 Energy Highway Task Force                                                                                        support additional efforts to transition to a cleaner power generation fleet on Long Island 5 Letter to Governor Andrew M. Cuomo                                                                  77          ACTION  Require utilities to evaluate repowering as an alternative solution for power plant 6 Introduction                                                                                                      retirements where the power plant is expected to be needed for reliability 13 Executive Summary                                                                                    78          ACTION  Establish a Community Support Plan and Greenhouse Gas Emissions Reduction 27 Blueprint for the Future                                                                                          Program in the electricity sector 33 A Four-Part Strategy                                                                                79      Support energy efficiency and other demand-side measures 37 Expand and Strengthen the Energy Highway                                                            81  Drive Technology Innovation 38    Expand transmission to carry excess power from upstate to downstate                              82      Advance Smart Grid in New York 40        ACTION  Initiate Alternating Current transmission upgrades to increase the capacity        83          ACTION  Fund Smart grid demonstrations projects to move excess power from upstate to downstate                                              85          ACTION  Develop an Advanced Energy Management System Control Center and pursue 42    Plan for possible power plant retirements                                                                    federal energy reserach grants 48        ACTION  Develop and implement Reliability Contingency Plans for potential large power      88      Ensure electric utility capital expenditure plans to implement cost-effective Smart Grid technologies plant retirements                                                                            89      Evaluate policies to encourage technological and commercial innovation 50    Support public-private partnerships                                                              91  Conclusion and Next Steps 50        ACTION  Provide public power authorities flexibility in contracting                        94  Appendix A: Energy Highway Process 5    Support workforce development for the energy industry                                            96  Appendix B: Summary of rFI Responses 55 Accelerate Construction and Repair 56        ACTION  Accelerate investments in electric generation, transmission, and distribution to strengthen reliability, safety, and storm resilience 57        ACTION  Accelerate investments in natural gas distribution to reduce cost to customers and      LIST OF FIgureS promote reliability, safety, and emission reductions                                          6  Figure      Energy System: Generation, Transmission, Distribution, Consumers 22  Figure 2      Timeline of Energy Highway Blueprint Impacts 61 Support Clean Energy 3  Figure 3     Map of Energy Highway Actions 62    Encourage the development of renewable generation                                                    Figure 4      Expand and Strengthen the Energy Highway Timeline 38 63        ACTION  Conduct a competitive solicitation for new renewable energy resources as part of    4  Figure 5      New York State Transmission System, 230 kv and above, Including the Highest Area of Congestion 45  Figure 6      Recent and Planned Generator Retirements as of September 2012 (Retirements Since 2010) the New York State Renewable Portfolio Standard 56  Figure 7      Accelerate Construction and Repair Timeline 66    Provide long-term certainty for renewable energy development beyond 2015                            Figure 8      Support Clean Energy Timeline 62 67    Facilitate further development of upstate renewable energy projects                              64  Figure 9      Existing and Proposed Wind Capacity (as of September 2012) 68        ACTION  Initiate transmission upgrades in Northern New York to help facilitate renewable    74  Figure 0    Age of New York Generating Facilities 82  Figure      Drive Technology Innovation Timeline energy development 0  Figure 2    Map of Transmission Responses 69    Advance policies to encourage distributed renewable energy development; continue and                Figure 3    Map of Generation Responses
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build on the NY-Sun initiative 7    Advance offshore wind development in New York                                                        LIST OF TAbLeS 20  Table        Summary of Energy Highway Task Force Actions 72        ACTION  Characterize offshore wind resources and evaluate cost recovery opportunities 24  Table 2      Summary of Energy Highway Task Force Policy Recommendations 73    Support repowering of existing power plants to improve efficiency and protect the environment    43  Table 3      Environmental Protection Agency (ePA) Actions Applicable to the Electricity Sector 76        ACTION  Initiate process for repowering of inefficient power plants on Long Island and      96  Table 4      Summary Matrix of All rfi Responses 2        coNteNts                                                                                                                                                                                      coNteNts      3
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Honorable Andrew M. Cuomo Governor of the State of New York State Capitol Albany, N.Y. 12224
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==Dear Governor Cuomo:==


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We are pleased to present the New York State Energy Highway Blueprint for your consideration.
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The Blueprint includes 13 recommended actions that we believe can eectively advance your far-reaching initiative to modernize New Yorks statewide energy system. The actions, including electric transmission and generation construction, development of renewable energy sources, and upgrades to electric and natural gas infrastructure, can make the New York Energy Highway a model of dynamic public-private investment. They stand to help modernize New Yorks aging energy infrastructure for the future, while spurring private-sector investment, promoting increased development of in-state energy resources, protecting the environment, and supporting jobs.
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Consistent with these priorities and with your mandate to us, we established objectives to ensure the long-term reliability of the electric system, improve electricity "ows from upstate to downstate, encourage development of renewable generation resources throughout the State, and deploy new technologies.
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We selected these actions following a thorough review of responses to a Request for Information (rfi) issued on April 11, 2012 and of public comments that were accepted throughout July and August. We are pleased to report that 85 entities, including the States investor-owned utilities, private developers, investors, and other parties, submitted 130 responses to the rfi. The substantive nature of many of these submittals, which included proposals for speci"c projects as well as discussion of energy issues and policies, demonstrated a widespread interest in confronting the States energy challenges and the competence required to implement the recommended eNergy HIgHwAy TASk FOrCe                                                actions. We assessed all responses to the rfi in light of their ability to meet one or more of the objectives and to contribute to such vital goals as system reliability, customer bene"t, environmental TOP rOw                                                  protection, job creation, and technology enhancement. The actions we recommend for your Gil C. Quiniones, (Co-Chair) President and Chief Executive Ocer, New York consideration will expand and strengthen the energy system, accelerate construction and repair, Power Authority                                          support clean energy, and drive technology innovation.
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Joseph Martens, (Co-Chair)                                    From the outset, the Task Force created a transparent process for participation and review Commissioner, New York State by interested parties and the public. All responses to the rfi were posted on the Energy Highway Department of Environmental Conservation                                              website. The Task Force sponsored two major conferencesthe Energy Highway Summit and a Conference of rfi Respondents and Interested Partiesthat attracted a total of more than bOTTOm rOw                                                670 attendees.
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Kenneth Adams, President, Chief Executive Ocer and Commissioner,                              Thanks to all who are contributing to the Energy Highway, we are able to build a better future Empire State Development today with powerful ideas for tomorrow. It has been a privilege to serve on the Energy Highway Garry A. Brown, Chairman, New York                        Task Force and we look forward to continuing to work with you, potential project developers, and State Public Service Commission others to bring this critical public-private initiative to fruition and ensure that New York stands as a Francis J. Murray, Jr., President                        leader in energy development and reliability.
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and Chief Executive Ocer, New York State Energy Research and Development Authority Gil C. Quiniones      Joseph Martens        Kenneth Adams          Garry A. Brown    Francis J. Murray, Jr.
northern new york
4        e N e r GY h i G h wAY tA s k f o r c e                                      letter to GoverNor ANdrew m. cuomo              5
* Initiate transmission upgrades to help facilitate renewable energy development.
 
central new york
years and decades to come. The power Introduction                                      system in New York, comprising the generation, transmission, distribution, and consumer segments illustrated in Figure 1, is a complex network of hundreds of large A
* Initiate Alternating Current transmission upgrades to increase the capacity to move  
modern, ecient, and environmentally and small power companies, producing sustainable electric power system in and delivering electric energy along New York State is the lifeblood of a tens of thousands of miles of overhead vibrant and growing economy, fueling and underground power lines to millions job creation, innovation, and new    of residential, commercial, and industrial technologies from mobile devices to              consumers. The Energy Highway electric vehicles. New York State is moving      initiative focuses on the generation and aggressively to ensure that its residents and    transmission systems to strengthen and businesses will have a safe, reliable,            enhance the foundation of New Yorks aordable, and clean energy supply in the        energy system.
figure 1 ENERGY HIGHWAY Generation                Transmission                              Distribution  Consumers 6        iNtroductioN                                                              iNtroductioN 7
 
We can build a new energy system across our entire State.
 
N.Y. GoverNor Andrew M. Cuomo 2012 State of the State Address
 
Generation New Yorks diverse sources of power generation include fossil fuels such as natural gas, oil, and coal; renewable resources such as hydropower, wind, solar, and biomass; and nuclear power. Governor Andrew M. Cuomos Power New York Act of 2011 instituted a streamlined permitting process for construction of new and repowered power plants, while New Yorks Renewable Portfolio Standard (rPs) provides important "nancial incentives to develop renewable energy resources statewide. Modernizing our generation assets promotes environmental and eciency goals and preparing well in advance for the potential closure of power plants is critical to safeguarding system reliability and protecting consumers.
Transmission and Distribution Ensuring the ecient transmission of power by reducing bottlenecks and deploying advanced smart technologies improves overall electric system operation and optimizes the use of existing assets in New York by allowing lower-cost and cleaner power to reach consumers. Investments in the transmis-sion and distribution systems can reduce customer costs over the long-term, improve safety and reliability, and protect the environment while immediately creating jobs and economic development. Investment in cost-eective Smart Grid technologies and encouraging commercial innovation in the power sector is vital to continuing the reliable and ecient operation of the energy system.
Consumers Ecient consumption of energy reduces costs and bene"ts the environment, and is advanced by several major State initiatives. For example, Governor Cuomos On-Bill Recovery Financing Program, implemented in January 2012, oers "nancing for home energy eciency improvements through utility bills while creating jobs. The NY-Sun initiative, announced by Governor Cuomo in January 2012, encourages installation of solar technology, reducing fossil fuel consumption and emissions. In April 2012, the Governor announced a $450 million program to reduce energy consumption in State buildings by 20 percent.
Ongoing investments through the Public Service Commission, New York State Energy Research and Development Authority, New York Power Authority, and Long Island Power Authority programs in the ecient use of energy provide bene"ts for all electricity consumers by keeping wholesale energy costs low during peak periods and improving the environment.
Energy Highway The Energy Highway Task Force presents in this Blueprint immediate actions and            In developing the Blueprint, the Energy Highway Task Force notes that New policy recommendations to modernize the power generation and transmission              Yorks State Energy Plan is in development, with an expected release in 2013.
systems to achieve vital safety, reliability, aordability, and sustainability goals on The Blueprint will provide input to the development of the State Energy Plans behalf of all New Yorkers.                                                              policies, strategies, and recommendations.
0      iNtroductioN                                                                                                                              iNtroductioN     
 
Executive Summary The Blueprint of the Energy Highway advances a strong public-private initiative to improve the States energy infrastructure, starting immediately, in order to enhance system reliability and eciency, minimize environmental impacts, and generate long-term customer bene"ts. These actions are expected to result in approximately $5.7 billion1 in public and private investments over the next "ve to 10 years, supporting jobs in New York during construction. The Blueprint provides for as much as 3,200 megawatts (mw) of additional electric generation and transmission capacity and renewable power generation.
The Blueprints actions and recommendations will unify the States eorts to create an energy infrastructure that will serve the States residents and businesses in the decades to come. Construction of the new transmission capacity called for under the Blueprint would solve a decades-old problem: the limitations of the States electric grid to transmit available, cheaper upstate power to downstate when demand is high. The Blueprint achieves this public policy goal with a "rst-of-its-kind solicitation of new transmission projects. The Blueprints call for immediate development and initial implementation of detailed contingency plans to address potential power plant closures demonstrates the States assumption of a new leadership role in challenging the market to prepare for and meet future uncertainties impacting the bulk electric system.
Construction of the new renewable generation called for under the Blueprint, and the recommended extension of funding for the States Renewable Portfolio Standard (rPs) to well beyond its current 2015 end date, signals the States unequivocal commitment to a future sustainable power generation sector at a time when the expiration of federal tax credits as well as market conditions are
: 1. One megawatt (mw) equals 1,000 kilowatts (kw) and is enough power to meet the needs of 800 to 1,000 average homes.
2 r u N N i N G f o ot e r                                                                                    executive summArY 3
 
working against such a vision. The Blueprints call for repowering major power generation facilities on Long Island and elsewhere demonstrates the States ongoing commitment to a cleaner environment. Accelerating utility capital and operation and maintenance spending on the States electric and natural gas infrastructure will result in enhanced reliability and safety for utility customers while generating substantial economic development bene"ts for the States The Blueprints actions overall economy. In addition, the Blueprint puts forward a coordinated public and private sector approach for Smart Grid to transition the aging existing electric system into the 21st Century grid.
and recommendations In response to a Request for Information (rfi) issued in April 2012, the Task Force received a broad spectrum of responses ranging from speci"c project will unify the States proposals and policy recommendations to advanced technologies suggestions.
This variety of responses, from 85 private developers, investor-owned utilities, "nancial institutions, and other entities, encompassing 130 proposals and con-efforts to create an energy cepts, provided the Task Force an unprecedented insight into the availability of projects and interest of stakeholders in New York State. The projects proposed      infrastructure that will serve the States residents in rfi responses represent more than 25,000 mw of capacity from new and existing generation and transmission; by way of comparison, the States current total installed generating capacity is 39,570 mw.
and businesses in the decades to come.
4      executive summArY                                                                          executive summArY 5
 
Thirteen speci"c actions involve State agencies and authorities with partners
* Build up to $35 million worth of strategic transmission upgrades to remove in the private sector and are grouped under the following areas to achieve the        a potential impediment to additional renewable energy development in objectives set forth by the Task Force to advance Governor Andrew M. Cuomos          Northern New York.
vision for the Energy Highway.
* Perform resource characterization2 studies for oshore wind development in the Atlantic Ocean.
* Initiate process to repower existing inecient power plants of approximately 750 mw on Long Island, at an estimated investment of $1.5 billion to $2 billion.
* Require utilities to evaluate repowering power plants as a potential solution when plants needed for reliability are scheduled for retirement.
* Create a new incentive fund for greenhouse gas emissions and particulate matter Expand and Strengthen the Energy Highway                                              reductions in the electricity sector; institute mechanisms to mitigate impacts
* Build $1 billion worth of electric transmission projects totaling over 1,000 mw of    on select aected communities from retirements of fossil-fuel power plants.
capacity, providing an alternative to locally constructed generation of equal capacity, and allowing energy produced at upstate power plants, including wind farms, to reach downstate consumers.
* Develop Reliability Contingency Plans for potential power plant retirements in cases that could impact the reliability of the system.
* Support "exibility in contracting for public power authorities, to facilitate public-private partnerships.                                                          Drive Technology Innovation
* Leverage the Smart Grid Program to advance the long-term goals of the Energy Highway with an investment of $110 million; provide additional support for Smart Grid technologies through an investment of $80 million focused on demonstration of new technologies in power grid system operations, security, and energy storage.
* Dedicate $10 million to further advance New York as a national center for Accelerate Construction and Repair                                                    Smart Grid technology and applications and to lead a statewide eort to house
* Advance up to $800 million of investments in electric generation, transmission,      a federal Smart Grid Technology Hub in New York, in partnership with national and distribution to enhance reliability, safety, and storm resilience.                laboratories and other industry partners; dedicate up to $50 million additional in
* Advance up to $500 million of investments in natural gas distribution to reduce      funding and other resources in the near-term to help support an Advanced costs to customers and enhance reliability, safety, and emission reductions.          Energy Management System Control Center in New York, along with a Smart Energy Utility application program targeted at system operation.
Support Clean Energy
* Execute new contracts for up to $250 million within the next year with renewable energy developers under the Renewable Portfolio Standard (rPs) to leverage an additional $425 million in private-sector investment to build up to 270 mw; continue to invest annually with future contract solicitations in new large-scale  2. Resource characterization studies provide more detailed information on the overall power renewable energy projects.                                                            generation potential, constructability, and permitting feasibility off the New York coast and can include the evaluation of wind speeds, ocean floor and geological conditions, environmental considerations, existing uses of the ocean area, and other factors.
6      executive summArY                                                                                                                                                    executive summArY 7
 
The Task Forces recommended actions take New York beyond the business-as-usual replacement plans for aging infrastructure and lay the groundwork for a signi"cantly improved energy system for the States businesses and residents.
These actions are expected to have short-, medium-, and long-term positive environmental and economic development bene"ts across the State.
Consumers are expected to experience lower energy costs in the long-term.
Enhanced reliability of the energy system is anticipated due to increased transmission capacity and "exibility of operation. The increased utilization of more ecient power plants and development of new renewable energy sources is projected to reduce air pollution and contribute to the mitigation of climate change. The electricity system statewide will be cleaner, more reliable, and ready to support New Yorks growing economy in the 21st century.
In addition to actions spurring investment in infrastructure, the Task Force puts forward the following policy recommendations to further advance New Yorks leadership in the energy industry:
* Support workforce development for the energy industry.
* Provide long-term certainty for renewable energy development in New York beyond 2015.
* Advance policies to encourage distributed renewable energy development; continue and build on the NY-Sun initiative.
* Evaluate cost recovery opportunities for oshore wind.
* Support additional eorts to transition to a cleaner power generation "eet on Long Island.
* Support energy eciency and other demand-side measures.
* Ensure electric utility capital expenditure plans include cost-eective Smart Grid technologies.
* Evaluate policies and regulatory mechanisms, such as the riio (Revenues =                               Existing processes can be expedited, where possible, to ensure swift, ecient, Incentives + Innovation + Outputs)3 framework recently adopted in the United                          and eective implementation of the proposed actions. The Blueprint recommends Kingdom, to encourage technological and commercial innovation.                                         steps to signi"cantly reduce the time required for development of energy infrastructure, including:
Expediting Implementation The Energy Highway initiative brought together the States principal energy,
* Executing a "rst-of-its-kind solicitation of new transmission projects by the environmental, and economic development agencies and authorities to partner                            Department of Public Service to initiate private sector development to achieve in a unique forum to undertake a broad planning eort and chart concrete                              public policy goals.
actions and implementation plans (see Appendix A for details on the
* Initiating reliability contingency planning years in advance of potential notices of Energy Highway process to date). This collaboration allows for expedited                              closure by power plants to ensure solutions can be in place to maintain reliability.
implementation of the recommended actions, some through existing
* Accelerating investments in the public and private sector to immediately spur processes and others through newly developed or expanded processes.                                    economic development in New York and achieve system bene"ts.
Under Governor Cuomos leadership, State agencies and authorities are poised to immediately begin working with the private sector to pursue the
: 3. riio is the United Kingdoms new approach to regulating their electric and natural gas transmission. outlined actions to realize the bene"ts for New York.
8          executive summArY                                                                                                                                  executive summArY        9
 
Table 1 Summary of Energy Highway Task Force Actions ACTION                                                                                                                  LeAD PubLIC  PArTNerS              eSTImATeD PubLIC AND PrIvATe                    INITIATe          eSTImATeD COmPLeTION PArTNerS 4                          INveSTmeNT POTeNTIAL                                              DATe exPAND AND StreNgtheN the eNergY highwAY initiate alternating Current transmission upgrades to increase the capacity to move                  DPS          NYPA, liPA, NYiSo,    $1 billion total for multiple projects totaling by the end of 2012 in phases from 2015 to 2018 excess power from upstate to downstate                                                                              ious, Private Sector  over 1,000 Mw Develop and implement reliability Contingency Plans to prepare for potential large                    DPS          NYPA, NYiSo, ious,    $1 to $2 billion totaling approximately        by the end of 2012 Summer 2016 if needed, additional power plant retirements                                                                                            Private Sector        1,200 Mw if needed, additional as identified                      as identified early 2013 Provide public power entities flexibility in contracting for public-private partnerships              NYPA, liPA                                                                                          end of 2013 AccelerAte coNStructioN AND rePAir accelerate investments in electric generation, transmission, and distribution for                    DPS, NYPA    ious                  $800 million                                    early 2013        end of 2017 reliability, safety, and storm resilience accelerate investments in natural gas distribution to reduce costs to consumers                      DPS          ious                  $500 million                                    by the end of 2012 end of 2017 and promote reliability, safety, and emission reductions SuPPort cleAN eNergY Conduct a competitive solicitation for renewable resources in New York as part of                    NYSerDA      DPS, Private Sector  $675 million for new capacity approaching      by the end of 2012 awards made summer 2013, projects the States renewable Portfolio Standard                                                                                                  270 Mw                                                            in service by end of 2014 initiate transmission upgrades in Northern New York to help facilitate renewable                     NYPA, NYSerDA DPS                  $35 million                                    by the end of 2012 Ongoing energy development Characterize offshore wind resources and evaluate cost recovery opportunities                        NYSerDA      NYPA, liPA, Dec, DoS, $2 to $5 million                                by the end of 2012 2014 ious, Private Sector initiate process for repowering of inefficient power plants on long island and support                liPA          Private Sector        $1.5 to $2 billion to repower approximately    Summer 2013        2019 to 2020 additional efforts to transition to a cleaner power generation fleet on long island                                                      750 Mw require utilities to evaluate repowering as an alternative to power plant retirements                DPS          ious, Private Sector                                                by the end of 2012 Ongoing, complete as needed when the plant is needed for reliability establish a Community Support Plan and greenhouse gas emissions reduction                            Dec, NYSerDA  DPS, eSD                                                            early 2013        Ongoing, open programs for Program in the electricity sector                                                                                                                                                                            applications by 2014 Drive techNologY iNNovAtioN fund Smart grid demonstration projects                                                                NYSerDA      DPS                  $190 million                                    early 2013        Ongoing Develop an advanced energy Management System Control Center and pursue a                              NYSerDA, NYPA NYiSo, academia,      $60 million                                    early 2013        Ongoing federal Smart grid Technology Hub                                                                                  federal government, ious, Private Sector Total estimated investment Potential up
: 4. Definitions: New York State Department of Public Service (dPs); New York Power Authority (NYPA); Long Island to $5.7 billion Power Authority (liPA); Investor-Owned Utilities (ious); New York Independent System Operator (NYiso); New York State Energy Research and Development Authority (NYserdA); New York State Department of Environmental                                    Potential Capacity installed totals as Conservation (dec); New York State Department of State (dos); Empire State Development (esd).                                            much as 3,200 Mw 20          executive summArY                                                                                                                                                              executive summArY            2
 
figure 2 Timeline of Energy Highway Blueprint Impacts E S T I M AT E D I N V E S T M E N T P O T E N T I A L l P O T E N T I A L C A PA C I T Y I N S TA L L E D  ARROw  = C O M P L E T I O N B E YO N D 2 0 1 8 2012                            2013                                            2014                                      2015                                                  2016                                                    2017                                                2018 initiate alternating Current transmission upgrades to increase the capacity to move excess electric power from upstate to downstate
                                                                                                                                                                                                                                                                                                  $1 billion  l  1,000 Mw exPAND AND StreNgtheN                                Develop and implement reliability Contingency Plans to prepare the eNergY                                for potential large power plant retirements
                                                                                                                                                                                            $1 - $2 billion      l 1,200 Mw highwAY Provide public power entities flexibility in contracting for public-private partnerships accelerate investments in electric generation, transmission,                                                                                                                                                                              $800 million and distribution for reliability, safety, and storm resilience AccelerAte coNStructioN                              accelerate investments in natural gas distribution to reduce costs to AND rePAir                                                                                                                                                                                                                                                                                  $500 million consumers and promote reliability, safety, and emission reductions Conduct a competitive solicitation for renewable energy resources in New York as part of the States renewable Portfolio Standard
                                                                                                                          $675 million l 270 Mw SuPPort cleAN eNergY                                    initiate transmission upgrades in Northern New York to help                                                                                                                                                                                                      $35 million facilitate renewable energy development Characterize offshore wind resources and evaluate cost                              $2 - $5 million recovery opportunities


excess power from upstate to
initiate process for repowering of inefficient power plants on long island
                                                                                                                                                                                                                                                                                            $1.5 - $2 billion    l  750 Mw


downstate.
require utilities to evaluate repowering as an alternative to power plant retirements when the plant is needed for reliability
* Accelerate investments in public and private sector electric generation, transmission, and distribution


and private sector natural gas
establish a Community Support Plan and greenhouse gas emissions reduction Program in the electricity sector


distribution.
fund Smart grid demonstrations projects                                                                                                                                                                                                                  $190 million Drive techNologY
downstate* Initiate Alternating Current transmission upgrades to


increase the capacity to move
iNNovAtioN                                      Develop an advanced energy Management System Control                                                                                                                                                                                                      $60 million Center and pursue federal Smart grid Technology Hub 22    executive summArY                                                                                                                                                                                          executive summArY                  23


excess power from upstate to downstate.
Table 2 Summary of Energy Highway Task Force Policy Recommendations POLICy reCOmmeNDATIONS                                                                        PArTNerS exPAND AND StreNgtheN the eNergY highwAY Support workforce development for the energy industry                        NYSerDA, NYPA SuPPort cleAN eNergY Provide long-term certainty for renewable energy development in New York    NYSerDA, DPS beyond 2015 advance policies to encourage distributed renewable energy development;      NYSerDA, DPS continue and build on the NY-Sun initiative evaluate cost recovery opportunities for offshore wind                      NYSerDA, DPS Support additional efforts to transition to a cleaner power generation fleet liPA on long island Support energy efficiency and other demand-side measures                    all Drive techNologY iNNovAtioN ensure electric utility capital expenditure plans include cost-effective    DPS Smart grid technologies evaluate policies and regulatory mechanisms, such as the riio (revenues =    DPS, NYSerDA incentives + innovation + Outputs) framework recently adopted in the united Kingdom, to encourage technological and commercial innovation 24        executive summArY                                                                ruNNiNG footer 25
* Characterize o!shore wind resources and evaluate cost recovery opportunities.
* Initiate process for repowering of ine"cient power plants on Long Island and support additional e!orts


to transition to a cleaner
per, erat ut sed ante dolor dui a, risus ocia auctor, orci mauris mauris euismod, ante iaculis posuere nec elit, lorem curabitur lobortis. Platea non praesent mauris, nunc ac consequat, eget donec, volutpat proin sed.            Blueprint for the Future Euismod vehicula wisi, sed vivamus placerat ut cras purus, bibendum adipiscing a magna duis The New York State Energy Highway Blueprint provides an action plan for neque, erat sed at, et inceptos molestie quis in.      implementing Governor Andrew M. Cuomos bold proposal for a public-private initiative to rebuild and rejuvenate New York States electric power system to A turpis, nonummy vitae commodo, ante ipsum            meet the needs of a 21st century economy and society.
The Blueprint was developed by the Energy Highway Task Force, appointed eget posuere, augue nibh, proin dictum eleifend        by the Governor shortly after he announced the Energy Highway initiative in his January 2012 State of the State address. The Task Force, consisting of the enim a praesent diam. Non per, erat ut sed ante        States principal energy, environmental, and economic development ocials, issued a Request for Information (rfi) in April 2012 that elicited responses from dolor dui a, risus ocia auctor, orci mauris mauris    85 private developers, investor-owned utilities, "nancial institutions, and other entities encompassing 130 proposals and concepts. The projects proposed euismod,                                              in rfi responses represent more than 25,000 mw of capacity from new and existing generation and transmission.
As summarized in Appendix B of the Blueprint, the responses covered a wide range of options, including proposals for new and upgraded transmission lines, the repowering5 or upgrading of existing power plants, and the construc-tion of new generating plants, including the development of new renewable resources. Rather than proposing individual projects, some submittals supported emerging technologies, such as energy storage and solar power, or advocated certain energy policies and priorities.
The Blueprint accounts for the various ideas and projects proposed by the respondents to the rfi, feedback and comments received by multiple stakeholders throughout the State, and relevant publicly available reports and analyses. The actions included in this Blueprint have bene"ts across New York
: 5. Repowering is a term used to describe the retirement of a power plant and the reconstruction of a new and more efficient plant with new equipment on the same property in its place.
26 2 6 r u N N i N G f o ot e r                                                                                                    bluePriNt for the future 27


power generation -eet on  
State (see Figure 3: Map of Energy Highway Actions, which shows the region(s)                      aecting power supplies and the communities where the plants are located.
tied to each action proposed by the Task Force).                                                  While the challenges are formidable, this Blueprint demonstrates that they can be The Energy Highway initiative is closely linked to Governor Cuomos NY                        met in a manner that advances the States energy, environmental, and economic Works program, an eort to forge new partnerships with private enterprises to                      development goals. In seeking a widespread response to the rfi, the Energy rebuild and modernize New Yorks infrastructure and to leverage the States                        Highway Task Force termed this The Time for Powerful Ideas. Those ideas have "nancial and technical resources to generate billions of dollars in private                        now emerged, setting the stage for equally powerful actions.
investment and support jobs. In keeping with these objectives, the Blueprint is designed to create an environment to spur private-sector involvement in carrying out the Energy Highway initiative and oers the potential for State assistance in addressing "nancial, regulatory, and other issues.6 The actions should be implemented in a manner consistent with restructured7 energy markets to deliver the most economical energy available to serve the power needs of all New Yorkers.
The Energy Highway initiative recognizes and responds to the following challenges:
* Reliable, clean, and competitively-priced energy is essential for quality of life and economic growth and requires a reliable and ecient infrastructure to deliver energy.
* Excess power is available in upstate New York, while demand is increasing in the downstate area. The construction and operation of power plants is less expensive in the upstate region as compared to downstate.
* Congestion points, or bottlenecks, on the electric transmission system prevent lower-cost and/or cleaner power from "owing easily from upstate to downstate, increasing costs for consumers and preventing improvements in environmental quality because the older and less ecient power plants are forced to run more frequently than would otherwise be necessary.
* The signi"cant potential to develop wind projects and other renewable energy sources in upstate New York may become impeded by transmission constraints that could prevent their full output from reaching consumers.
* The existing electric and natural gas infrastructure requires upgrades and repairs to ensure continued safe and reliable operation, to provide storm resilience, and to potentially lower costs for consumers.
* A number of factors, including the current low price of natural gas, pending environmental regulations, and uncertainty of federal licenses, impact the continued viability of certain power plants and could lead to their retirements,
: 6. System reliability issues continue to be managed and guided by the New York State Department of Public Service (dPs) and the New York Independent System Operator (NYiso),
and this Blueprint is not intended to duplicate the reliability evaluation and responsibilities of the dPs and the NYiso.
: 7. Restructured energy markets were established in New York State in 1997 and 1998 to create competition in the supply of electricity.
28        b l u e P r i N t f o r th e f u t u r e                                                                                              bluePriNt for the future      29


Long Island.
FIGURE 3 Map of Energy Highway Actions northern new york
hudson valley
* Initiate transmission upgrades to help facilitate renewable energy development.
* Initiate Alternating Current transmission upgrades to increase the capacity to move excess power from upstate to downstate.
* Develop Reliability Contingency Plans to prepare for potential large power plant retirements.
western new york
western new york
* Establish a Community Support Plan and Greenhouse Gas Emissions Reduction Program.
* Establish a Community Support Plan and Greenhouse Gas Emissions Reduction Program.
* Utilities to evaluate repowering as an alternative to power plant retirements when the plant is needed for reliability.
* Utilities to evaluate repowering as an alternative to power plant NORTHERN NEW YORK retirements when the plant is needed for reliability.                                                                                 central new york
statewide* Develop Reliability Contingency Plans to prepare for potential large power plant retirements.
* Initiate Alternating Current transmission upgrades to increase the capacity to move excess power from upstate to CENTRAL NEW YORK downstate.
* Accelerate investments in public and private sector WESTERN NEW YORK electric generation, transmission, and distribution and private sector natural gas distribution.
HUDSON VALLEY hudson valley
* Initiate Alternating Current transmission upgrades                                      downstate to increase the capacity to move excess power
* Initiate Alternating Current from upstate to downstate.                            DOWNSTATE transmission upgrades to
* Develop Reliability Contingency Plans to prepare                                        increase the capacity to move for potential large power plant retirements.                                            excess power from upstate to downstate.
* Characterize offshore wind resources and evaluate cost recovery opportunities.
* Initiate process for repowering of inefficient power plants on Long Island and support additional efforts statewide                                                                                                         to transition to a cleaner
* Develop Reliability Contingency Plans to prepare for potential large power                                         power generation fleet on plant retirements.                                                                                                Long Island.
* Accelerate investments in public and private sector electric generation, transmission, and distribution and private sector natural gas distribution.
* Accelerate investments in public and private sector electric generation, transmission, and distribution and private sector natural gas distribution.
* Conduct a competitive solicitation and contract for new renewable resources as part of the New York State Renewable Portfolio Standard.
* Conduct a competitive solicitation and contract for new renewable resources as part of the New York State Renewable Portfolio Standard.
Line 123: Line 175:
* Leverage existing programs to support the goals of the Energy Highway and increase funding for strategic demonstration.
* Leverage existing programs to support the goals of the Energy Highway and increase funding for strategic demonstration.
* Pursue a federal Smart Grid Technology Hub and an Advanced Energy Management System Control Center.
* Pursue a federal Smart Grid Technology Hub and an Advanced Energy Management System Control Center.
W ESTERN N EW Y ORK NORTHERN NEW YORK CENTRAL NEW YORK HUDSON VALLEY DOWNSTATE H=J9M;LGJ
30 R U N N I N G F O OT E R                                                                            BLUEPRINT FOR THE FUTURE                      31
 
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per, erat ut sed ante dolor dui a, risus ocia auctor, orci mauris mauris euismod, ante iaculis posuere nec elit, lorem curabitur lobortis. Platea non praesent mauris, nunc ac consequat, eget donec, volutpat proin sed.            A Four-Part Strategy Euismod vehicula wisi, sed vivamus placerat ut cras purus, bibendum adipiscing a magna duis The Energy Highway Task Force has identi"ed four main areas of focus in this neque, erat sed at, et inceptos molestie quis in.      Blueprint that address the objectives and goals identi"ed by Governor Cuomo and in the rfi:
;GEEG<Gx
A turpis, nonummy vitae commodo, ante ipsum eget posuere, augue nibh, proin dictum eleifend enim a praesent diam. Non per, erat ut sed ante dolor dui a, risus ocia auctor, orci mauris mauris expand and Strengthen        accelerate Construction          Support Clean energy      Drive Technology the energy Highway          and repair                                                  innovation euismod, The following recommended actions include short-, medium-, and long-term steps to build the path forward to achieve the stated public policy goals. These actions are speci"c, assigned to State entities for execution or implementation, and laid out on a timeline to ensure the mission of the Governors Energy Highway initiative is achieved.8 The Energy Highway Task Force reviewed each rfi response and assessed the contribution of each to meeting the identi"ed objectives. Collectively the responses provided substantial value to the preparation of the Blueprint by supplying useful information regarding both the public and private interests in various projects and issues.
: 8. Actions recommended by the Task Force are subject to all applicable regulatory and statutory requirements.
32    r u N N i N G f o ot e r                                                                                                            A four-PArt strAteGY      33


x
The Task Forces long-term view looks beyond the typical 10-year forecasts and projections in traditional energy system industry models. Infrastructure investments, especially those in electricity transmission, provide bene"ts for decades, requiring a vision that considers costs and bene"ts over a 40- to 50-year horizon.
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per, erat ut sed ante dolor dui a, risus ocia auctor, orci mauris mauris euismod, ante iaculis posuere nec elit, lorem curabitur lobortis. Platea non praesent mauris, nunc ac consequat, eget donec, volutpat proin sed.                              Expand and Strengthen Euismod vehicula wisi, sed vivamus placerat ut                          The Energy Highway cras purus, bibendum adipiscing a magna duis neque, erat sed at, et inceptos molestie quis in.
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New York has a reliable electric system, but it is a system consisting of A turpis,                    eSTImATeD INveSTmeNT POTeNTIAL transmission lines and power plants that are aging. Some of these facilities also have uncertain futures. The Energy Highway initiative leverages ongoing nonummy                      up to $2 billion                            replacement in-kind of aging infrastructure and identi"es speci"c areas to POTeNTIAL CAPACITy INSTALLeD                expand transmission capacity to move excess power from upstate power vitae                        up to 2,200 Mw of transmission and          producers to downstate, while providing signi"cant reliability, economic, and generation capacity by 2018                environmental bene"ts. The following actions and recommendations improve commodo,                                                                the eciency of the Energy Highway system and bene"t New York residents exPeCTeD beNeFITS and businesses:
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ante ipsum                  enhance reliability; increase system operations flexibility; address major
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* Expand transmission to carry excess power from upstate: initiate Alternating eget posuere,                planning uncertainties; reduce              Current (Ac) electric transmission upgrades to increase the capacity to move transmission congestion and improve        excess electric power from upstate to downstate by over 1,000 mw.
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* Plan for possible power plant retirements: develop and implement Reliability Contingency Plans to prepare for potential large power plant retirements.
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* Support public-private partnerships: provide public power entities "exibility in contracting for public-private partnerships that can bene"t the States energy infrastructure.
* Support workforce development for the energy industry.
The NYiso has in place both reliability and economic planning processes that forecast needs and upgrade opportunities looking out over 10 years. The Energy Highway initiative is not intended to replace these processes, but rather to supplement them. The con"uence of aging infrastructure with multiple power plant retirements due to economics and "uctuating fuel prices, along with the anticipated or potential retirement of power plants due to increasing environmental restrictions or regulatory issues, calls for a broader planning 36 3 6 r u N N i N G f o ot e r                                                                          exPANd ANd streNGtheN the eNerGY hiGhwAY        37 DRAFT CONFIDENTIAL  DRAFT CONFIDENTIAL


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figure 4 Expand and Strengthen the Energy Highway Timeline E S T I M AT E D I N V E S T M E N T P O T E N T I A L l P O T E N T I A L C A PA C I T Y I N S TA L L E D 2012                                          2013                                      2014                  2015                              2016                                                        2017                                                            2018 initiate alternating Current transmission upgrades to increase the capacity to move excess electric power from upstate to downstate
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                                                                                                                                                                                                                                                                              $1 billion    l 1,000 Mw exPAND AND StreNgtheN                                              Develop and implement reliability Contingency Plans to prepare the eNergY                                              for potential large power plant retirements
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                                                                                                                                                                $1 - $2 billion l 1,200 Mw highwAY Provide public power entities flexibility in contracting for public-private partnerships eort guided by public policy. In addition to responding to each individual                                investments, Ac investments provide the additional bene"t of contributing to situation through the NYiso processes, New York requires a comprehensive                                    a system that is more robust and "exible with increased reliability bene"ts,                                                    rFI reSPONSeS The Task Force received three view of how to best position the electric system to bene"t ratepayers over                                  thereby increasing the area within which generation facilities can be placed to                                                  proposals in support of Ac the long-term.                                                                                              respond to future system needs.                                                                                                  transmission upgrades, accounting for 20 individual The reduction of in-state transmission constraints and development of                                                        projects and demonstrating that Expand transmission to carry excess power from upstate to downstate                                        additional transmission capacity is expected to reduce air emissions in the                                                      the private sector is positioned to support the proposed action:
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New York States electric transmission system faces a longstanding problem of                              New York City area, support the development of upstate renewable energy congestion at critical points on the pathways linking upstate and downstate New                            projects, and lower wholesale energy prices for downstate energy consumers.
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* Boundless Energy, llc
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* CityGreen Transmission, Inc.
York. Together, New York City, Long Island, and Westchester County account                                  Further, upgrades should provide economic development bene"ts to upstate
* New York Transmission for more than half of the demand for electricity in the State and this demand is                            by enabling excess energy from upstate power plants to reach downstate                                                          Company (Transco) increasing; however, in times of peak demand and high prices, lower-cost and/or                            markets, improving the "nancial viability of existing upstate power producers,                                                  Additionally, ls Power cleaner power available from upstate cannot reach these densely populated                                  and allowing existing and new wind farms and other renewable sources in                                                          Transmission submitted suggestions for facilitating Ac areas because of the transmission bottlenecks. Congestion can have adverse                                  that region to access higher-priced energy markets.                                                                              transmission development.
environmental and economic consequences when older plants in urban areas run more frequently than they otherwise would if power from other sources of energy could reach these areas. The Energy Highway Blueprint addresses the challenges of a congested transmission system by calling for the upgrade of existing lines and the building of new lines following existing rights-of-way.
The Ac electric transmission system is the backbone of a reliable transmission system. The Ac system promotes reliability through its ability and "exibility to respond to emergencies on the system. Unlike Direct Current (dc) transmission lines, the Ac system also allows for the interconnection of needed generation resources at multiple points on the system. dc lines serve the purpose of moving energy over long distances and interconnecting incompatible systems.
Prudent transmission planning evaluates all alternatives-Ac transmission, dc transmission, generation, and energy eciency-so as to identify new infrastruc-ture to provide the most robust system at a reasonable cost to ratepayers.
While congestion can also be reduced through generation or dc transmission 38      e x PA N d A N d s t r e N G t h e N t h e e N e r GY h i G h wAY                                                                exPANd ANd streNGtheN the eNerGY hiGhwAY                                                39


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figure 5 ACTION  Initiate Alternating Current transmission upgrades to increase                                New York State Transmission System, the capacity to move excess power from upstate to downstate                                            230 kV and Above, Including the Highest Area of Congestion11 ASSIgNeD AgeNCy New York State Department of Public Service PArTNerS New York Power Authority, Long Island Power Authority, New York Independent System Operator, Investor-Owned Utilities, Private Sector INITIATe By the end of 2012 eSTImATeD COmPLeTION DATe DPS permitting process complete in time to begin construction by 2014; projects to be completed in phases, expected from 2015 to 2018 eSTImATeD INveSTmeNT POTeNTIAL
    $1 billion for a total of over 1,000 mw of increased capacity The Energy Highway Task Force recommends that the dPs invite developers and transmission owners to "le notices of intent to construct projects that would increase the capacity for transfer of electric power between upstate and Highest Area of Congestion:
Central New York and the lower Hudson Valley and New York City, thus relieving                                        Central East  New Scotland  Leeds  Pleasant Valley existing bottlenecks. These projects would also be expected to enhance system                                          New York State Transmission System reliability into the future. Speci"cally, the dPs should call for projects that relieve                                230 kV and above congestion, including those bene"ting the following transmission corridor Note: Projects that may relieve congestion in the consisting of: Central East-New Scotland-Leeds-Pleasant Valley between the                            highlighted area may not necessarily be physically Mohawk Valley Region, the Capital Region, and the Lower Hudson Valley (see                            located within this area.
Figure 5: New York State Transmission System, 230 kv and Above, Including the Highest Area of Congestion).                                                                          and allocation. Following these submissions, dPs will initiate a pre-"ling, Based on the proposals received in response to the rfi, analysis conducted                      multi-agency review, and evaluation process leading to establishing deadlines by the Task Force in cooperation with the NYiso, and review of published stud-                        for applications, possibly phased according to which congested interfaces the ies such as the New York State Transmission Assessment and Reliability Study                          proposed transmission projects would address. After complete applications (stArs) issued in April 2012, the Task Force estimates that approximately 1,000                        for certi"cates have been received, a coordinated hearing and decision phase of mw of cost-eective opportunities exist to upgrade the Ac transmission system.9                        the certi"cation process will commence. The process will include an evaluation The dPs should call for each developer of a proposed project that meets                          of the economic bene"ts and environmental impacts of each project. It is these objectives to submit a letter of intent to the Public Service Commission                        expected that, subject to a determination granting a certi"cate, projects meeting (Psc) providing a detailed project description, including cost estimates, a target                    the objectives could begin construction in 2014.
date for "ling its Article vii10 application and its approach to cost recovery                              The Task Force anticipates that signi"cant bene"ts will result from upgrading the Ac transmission system. dPs, in its invitation to developers and transmission owners, should emphasize a preference for projects developed along existing
: 9. Transmission security and resource assessments were performed by Nexant and PowerGEM
: 10. Article vii of the New York Public Service Law sets forth the existing certification review process for siting major utility transmission facilities in New York State. Additional information about the siting process can be found on the dPs website: www.dps.ny.gov.                          11. Information adapted from the NYisos Power Trends 2012: State of the Grid, page 31.
40          e x PA N d A N d s t r e N G t h e N t h e e N e r GY h i G h wAY                                                                  exPANd ANd streNGtheN the eNerGY hiGhwAY  4


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Table 3 rights-of-way or that include upgrades to existing lines. By doing so, it is expected that this initiative will minimize environmental impacts and potential                                Environmental Protection Agency (ePA) Actions Applicable to the Electricity Sector15 community opposition that could result from construction in new transmission rights-of-way. These targeted upgrades of the Ac transmission system can strengthen the statewide power grid and provide signi"cant reductions in                                        CATegOrIeS  ePA ACTION                    ObjeCTIveS                                        STATuS OF ACTION nitrogen oxide (No x ) and particulate matter emissions in the downstate region.
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The reduction of those emissions are particularly important because the                                        CrITerIA    Cross State air Pollution rule reduce sulfur dioxide and nitrogen oxide          Court vacated Cross State air Pollution downstate region is designated nonattainment12 for the federal air quality stan-                               POLLuTANTS                                  emissions from fossil fuel power plants in the    rule on august 21, 2012, directed eastern u.S.                                      ePA to enforce current rules until it dard for ozone, and No x emissions contribute to those elevated ozone levels.                                                                                                                                develops a substitute New Particulate Matter        evaluate tightening existing fine particulate    final rule required by Plan for possible power plant retirements                                                                                    National ambient air Quality  standard                                          December 14, 2012 Standards More than 40 percent of New Yorks existing power generating capacity is over 40 years old and more than 20 percent is over 50 years old.13 Recent                                                    New Sulfur Dioxide National    More stringent sulfur dioxide emissions          Promulgated June 2010 ambient air Quality Standard  standards and pending environmental regulations (see Table 3: Environmental Protection New Nitrogen Dioxide National  More stringent nitrogen dioxide emissions        Promulgated february 2010 Agency (ePA) Actions Applicable to the Electricity Sector) coupled with ambient air Quality Standard  standards low natural gas prices could lead to accelerated retirements of some of these New Ozone National ambient    More stringent ozone emissions standards          Promulgated March 12, 2008 older facilities.                                                                                                            air Quality Standard The potential retirement of power plants creates uncertainties for the future Nitrogen Oxides reasonably    Maintain this level of control for both          Promulgated June 2012; requires of the States power supply. The Energy Highway Task Force recommends action                                                available Control Technology  particulate matter and ozone, and to assist      that sources meet new limits by with attainment of both new ambient air          July 1, 2014 to address two critical aspects of this uncertainty.
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quality standards best available retrofit        required under the federal regional haze          Promulgated april 2012; requires
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* The proposed closure of power plants that are required to maintain system Technology                    provisions of the Clean air act                  that sources comply with limits by reliability can potentially impose additional costs on customers when the closing                                                                                                                            January 1, 2014 plant must be kept online at above market prices.
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* Either by virtue of plant size, location, or uncertainties regarding the timing                                  merCury AND  Maximum available Control      More stringent mercury emission standards        Promulgated february 2012 AIr TOxICS  Technology for Mercury and    for coal-fired power plants, and a range of of potential retirements, the electricity market may not be in a position to                                    STANDArDS    other pollutants              other hazardous air pollutants emitted by coal- and oil-fired power plants respond adequately to the shutdown of certain power plants once retirement is announcedas is the potential case with the Indian Point Energy Center, a wASTe AND    Coal Combustion Waste          rule on disposal of coal combustion waste,        expected 2013 2,066 mw nuclear power plant located in the lower Hudson Valley.14                                              wATer                                      phasing out existing surface storage methods Wastewater Discharge          More stringent regulation of wastewater These realities justify enhancements to the current process for managing                                                regulations                    discharges from coal, oil, and gas                expected april 2014 powered units.
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power plant retirements.
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In most cases to date, the market has responded adequately to the retirement                                            Power Plant Cooling Water      More stringent regulation on cooling water        expected June 2013 intake Structures rule        intake structures at existing facilities in order of plants by providing any needed capacity. Every two years the NYiso, the                                                                                  to limit harm to fish populations entity responsible for overseeing operations of the transmission system and greeNHOuSe  greenhouse gas reporting      Oil and gas facilities must track                Promulgated November and gASeS        rules for New Sectors          greenhouse gas (ghg) emissions as part of        December 2010 ePAs ghg report Program Tailoring rule                raised threshold for best available Control      Promulgated June 3, 2010
: 12. Areas that do not meet the federal Environmental Protection Agencys (ePA) health-based criteria for                                                        Technology for power plants emitting large permissible levels of air pollutants are designed nonattainment areas.
amounts of carbon dioxide
: 13. See Figure 10.
: 14. The Task Force makes no assumption as to the probability of a closure of the Indian Point Energy Center, New Source Performance        More stringent ghg emission standards for        expected 2013 and makes no determination of future events in this regard. This process is intended to provide a solution Standards                      new and modified power plants to maintain reliability in New York State in case of power plant closures, including a closure of Indian Point, and is not intended to indicate any proposed decision with regard to such closure.
: 15. Information adapted from the ePA website: www.epa.gov.                                                                      Performance Standards for      ghg emission standards for existing power        unknown existing Plants                plants 42          e x PA N d A N d s t r e N G t h e N t h e e N e r GY h i G h wAY                                                                  exPANd ANd streNGtheN the eNerGY hiGhwAY                            43


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Figure 6 energy markets in New York, conducts a Reliability Needs Assessment. This RFI RESPONSES                        assessment builds on the utilities individual local transmission system plans                      Recent and Planned Generator Retirements as of Multiple proposals were submit-and results in a Comprehensive Reliability Plan that relies "rst on market-based                    September 2012 (Retirements Since 201017) ted in response to the RFI that could provide potential solutions    solutions, but also contains regulated avenues to provide solutions with rate in a Reliability Contingency Plan for the Indian Point Energy      recovery if the market solutions do not get implemented in time. The NYISO                                                                                    RETIREMENT STATUS                    FUEL SOURCE KEY Center, such as adding addi-          also examines scenarios that could respond to needs, such as those created                                                                                    R = Retired tional generation capacity in the                                                                                                                            Fuel Source Hudson Valley or New York City        by potential retirements of large coal and nuclear plants, but does not solicit                                                                              P = Planned                                Coal N = Previously gave notice regions and upgrading transmis-      solutions for such contingencies.                                                                                                                                  but rescinded sion into the Hudson Valley or                                                                                                                                                                                                                  Oil/Gas/Kerosene New York City. In total, respon-            New York has a regulatory process for managing power plant retirements, dents to the RFI identi"ed            once the retirement is formally announced, to ensure that system reliability is 95            Plant Size (in MW) over 6,000 MW of generation, including repowering proposals,      maintained. The State currently requires a power plant owner to provide six                              N            Retirement to be located in the Hudson                                                                                                                                  Status months notice to system operators of its plans to temporarily cease operations Valley or New York City regions and 5,700 to 7,600 MW of DC          (also referred to as mothballing) or to completely shut down and retire.16 Both transmission to terminate in          the NYISO and the utility that owns the transmission system surrounding the                                                                                                                ST. LAWRENCE the Hudson Valley or New York City. Many of the projects            retiring power plant evaluate whether the pending loss of capacity would referenced in the previous            result in adverse reliability impacts. Under the existing process, if negative section under AC transmission                                                                                                                                                                                                          95 upgrades are also applicable.        impacts are identi"ed, the local transmission owner proposes investments in                                                                                              OSWEGO N
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These responses demonstrate                                                                                                                                                                                        55 its transmission and/or distribution systems to solve the potential problem. In that the private sector is posi-                                                                                                                                                                                    N tioned to support proposed            cases where reliability is at risk from the pending retirement, the power plant potential Reliability Contingency and utility may negotiate a Reliability Support Services contract, at above-Plan for the Indian Point Energy                                                                                                                                              MONROE Center. The certainty and timing      market rates, to keep the power plant operating until the alternate solution is ONONDAGA of construction will be critical implemented. This contract provides the power plant owner compensation for a                                                                                                      80 components in the Reliability Contingency Plan development.        limited time to ensure reliability. Though only one instance to date has required                                                            18                                    R YATES Proposals were submitted by:                                                                                                                                                        R a Reliability Support Services contract, executed in August 2012, this situation                                                                                TOMPKINS
* American Electric Power              may arise again in the future, putting consumers at risk for additional costs.                      CHAUTAUQUA
* Boundless Energy, LLC                                                                                                                                                                                                BROOME The Energy Highway Task Force recommends that the existing process be                                                                            108
* CityGreen Transmission, Inc.                                                                                                                                                                  R          306
* Clover Leaf Power, LLC                enhanced to minimize the potential additional cost burdens on customers and                                                                                          P
* Cogen Technologies Linden                                                                                                                    635    80                                                              95    48 Venture to more proactively prepare for potential critical situations in advance of when P    R                                                                R    R
* Competitive Power                    power plants provide ocial notice of plans to retire (see Figure 6 for a map of Ventures, Inc.
* Cricket Valley Energy Recent and Planned Generator Retirements as of September 2012 [Retirements Center, LLC                          Since 2010] ). Dynamic and proactive scenario planning can provide many
* GenOn Energy, Inc.                                                                                                                                                                                  40
* Hydro-Quebec Production bene"ts. For example, preparations for replacement solutions years in advance                                        NEW YORK CITY                            R
* Iberdrola, USA                        can minimize the need for Reliability Support Services contracts to safeguard
* New York Transmission                                                                                                                                                                    QUEENS Company (Transco) the power system and thus reduce costs to customers. This long-term view will                                                                                        200 NASSAU
* NextEra Energy Resources              also allow for longer-term alternative solutions, such as repowering of existing                                                        BROOKLYN R
* NRG Energy, Inc.
* NYC Energy, LLC generators and construction of new power plants, transmission, or other                                                                                567 64
* Pure Energy Infrastructure, LLC      infrastructure projects that require more than the formal six-month notice                                                                              R R
* Taylor Biomass Energy-                                                                                                                                                                320                  100    18 Montgomery, LLC period to implement.                                                                                                                            N                    R      R
* TransCanada Corporation
* Transmission Developer, Inc.,
Champlain Hudson Power Express Project
* US Power Generating Company (US PowerGen)            16. PSC 2005 Order issued in Case 05-E-0889, Order Adopting Notice Requirements for Generation Unit 17. Information adapted from the NYISOs website, using Retirement Notices provided under Planned
* West Point Partners, LLC              Retirements (December 20, 2005).                                                                    Generation Retirements section, as well as recent Load & Capacity Data Reports.
e x PA N D A N D S t R e N G t h e N t h e e N e R GY h I G h WAY                                                                      exPAND AND StReNGtheN the eNeRGY hIGhWAY}}

Revision as of 18:12, 11 November 2019

Official EXHIBIT- NYS00448A-00-BD01 - New York Energy Highway Task Force, New York Energy Highway Blueprint (Oct. 22, 2012)
ML12340A819
Person / Time
Site: Indian Point  Entergy icon.png
Issue date: 11/09/2012
From:
State of NY, Energy Highway
To:
Atomic Safety and Licensing Board Panel
SECY RAS
References
50-247-LR, 50-286-LR, ASLBP 07-858-03-LR-BD01, RAS 23731
Download: ML12340A819 (24)


Text

United States Nuclear Regulatory Commission Official Hearing Exhibit NYS000448A Entergy Nuclear Operations, Inc. Submitted: November 9, 2012 In the Matter of:

(Indian Point Nuclear Generating Units 2 and 3)

ASLBP #: 07-858-03-LR-BD01 Docket #: 05000247 l 05000286 Exhibit #: NYS00448A-00-BD01 Identified: 11/14/2012 Admitted: 11/14/2012 Withdrawn:

Rejected: Stricken:

Other: Originally Identified as BRD000007 New York Energy Highway Blueprint N .Y. G O V E R N O R Andrew M. Cuomo NYEnergyHighway.com Issued 2012 by the New York Energy Highway Task Force R UNNI NG F O OTE R 1 DRAFT CONFIDENTIAL

ENERGY HIGHWAY Generation Transmission Distribution Consumers

Contents Key to powering our economic growth is expanding our energy infrastructure.

N.Y. GoverNor Andrew M. Cuomo 2012 State of the State Address 4 Energy Highway Task Force support additional efforts to transition to a cleaner power generation fleet on Long Island 5 Letter to Governor Andrew M. Cuomo 77 ACTION Require utilities to evaluate repowering as an alternative solution for power plant 6 Introduction retirements where the power plant is expected to be needed for reliability 13 Executive Summary 78 ACTION Establish a Community Support Plan and Greenhouse Gas Emissions Reduction 27 Blueprint for the Future Program in the electricity sector 33 A Four-Part Strategy 79 Support energy efficiency and other demand-side measures 37 Expand and Strengthen the Energy Highway 81 Drive Technology Innovation 38 Expand transmission to carry excess power from upstate to downstate 82 Advance Smart Grid in New York 40 ACTION Initiate Alternating Current transmission upgrades to increase the capacity 83 ACTION Fund Smart grid demonstrations projects to move excess power from upstate to downstate 85 ACTION Develop an Advanced Energy Management System Control Center and pursue 42 Plan for possible power plant retirements federal energy reserach grants 48 ACTION Develop and implement Reliability Contingency Plans for potential large power 88 Ensure electric utility capital expenditure plans to implement cost-effective Smart Grid technologies plant retirements 89 Evaluate policies to encourage technological and commercial innovation 50 Support public-private partnerships 91 Conclusion and Next Steps 50 ACTION Provide public power authorities flexibility in contracting 94 Appendix A: Energy Highway Process 5 Support workforce development for the energy industry 96 Appendix B: Summary of rFI Responses 55 Accelerate Construction and Repair 56 ACTION Accelerate investments in electric generation, transmission, and distribution to strengthen reliability, safety, and storm resilience 57 ACTION Accelerate investments in natural gas distribution to reduce cost to customers and LIST OF FIgureS promote reliability, safety, and emission reductions 6 Figure Energy System: Generation, Transmission, Distribution, Consumers 22 Figure 2 Timeline of Energy Highway Blueprint Impacts 61 Support Clean Energy 3 Figure 3 Map of Energy Highway Actions 62 Encourage the development of renewable generation Figure 4 Expand and Strengthen the Energy Highway Timeline 38 63 ACTION Conduct a competitive solicitation for new renewable energy resources as part of 4 Figure 5 New York State Transmission System, 230 kv and above, Including the Highest Area of Congestion 45 Figure 6 Recent and Planned Generator Retirements as of September 2012 (Retirements Since 2010) the New York State Renewable Portfolio Standard 56 Figure 7 Accelerate Construction and Repair Timeline 66 Provide long-term certainty for renewable energy development beyond 2015 Figure 8 Support Clean Energy Timeline 62 67 Facilitate further development of upstate renewable energy projects 64 Figure 9 Existing and Proposed Wind Capacity (as of September 2012) 68 ACTION Initiate transmission upgrades in Northern New York to help facilitate renewable 74 Figure 0 Age of New York Generating Facilities 82 Figure Drive Technology Innovation Timeline energy development 0 Figure 2 Map of Transmission Responses 69 Advance policies to encourage distributed renewable energy development; continue and Figure 3 Map of Generation Responses

build on the NY-Sun initiative 7 Advance offshore wind development in New York LIST OF TAbLeS 20 Table Summary of Energy Highway Task Force Actions 72 ACTION Characterize offshore wind resources and evaluate cost recovery opportunities 24 Table 2 Summary of Energy Highway Task Force Policy Recommendations 73 Support repowering of existing power plants to improve efficiency and protect the environment 43 Table 3 Environmental Protection Agency (ePA) Actions Applicable to the Electricity Sector 76 ACTION Initiate process for repowering of inefficient power plants on Long Island and 96 Table 4 Summary Matrix of All rfi Responses 2 coNteNts coNteNts 3

Honorable Andrew M. Cuomo Governor of the State of New York State Capitol Albany, N.Y. 12224

Dear Governor Cuomo:

We are pleased to present the New York State Energy Highway Blueprint for your consideration.

The Blueprint includes 13 recommended actions that we believe can eectively advance your far-reaching initiative to modernize New Yorks statewide energy system. The actions, including electric transmission and generation construction, development of renewable energy sources, and upgrades to electric and natural gas infrastructure, can make the New York Energy Highway a model of dynamic public-private investment. They stand to help modernize New Yorks aging energy infrastructure for the future, while spurring private-sector investment, promoting increased development of in-state energy resources, protecting the environment, and supporting jobs.

Consistent with these priorities and with your mandate to us, we established objectives to ensure the long-term reliability of the electric system, improve electricity "ows from upstate to downstate, encourage development of renewable generation resources throughout the State, and deploy new technologies.

We selected these actions following a thorough review of responses to a Request for Information (rfi) issued on April 11, 2012 and of public comments that were accepted throughout July and August. We are pleased to report that 85 entities, including the States investor-owned utilities, private developers, investors, and other parties, submitted 130 responses to the rfi. The substantive nature of many of these submittals, which included proposals for speci"c projects as well as discussion of energy issues and policies, demonstrated a widespread interest in confronting the States energy challenges and the competence required to implement the recommended eNergy HIgHwAy TASk FOrCe actions. We assessed all responses to the rfi in light of their ability to meet one or more of the objectives and to contribute to such vital goals as system reliability, customer bene"t, environmental TOP rOw protection, job creation, and technology enhancement. The actions we recommend for your Gil C. Quiniones, (Co-Chair) President and Chief Executive Ocer, New York consideration will expand and strengthen the energy system, accelerate construction and repair, Power Authority support clean energy, and drive technology innovation.

Joseph Martens, (Co-Chair) From the outset, the Task Force created a transparent process for participation and review Commissioner, New York State by interested parties and the public. All responses to the rfi were posted on the Energy Highway Department of Environmental Conservation website. The Task Force sponsored two major conferencesthe Energy Highway Summit and a Conference of rfi Respondents and Interested Partiesthat attracted a total of more than bOTTOm rOw 670 attendees.

Kenneth Adams, President, Chief Executive Ocer and Commissioner, Thanks to all who are contributing to the Energy Highway, we are able to build a better future Empire State Development today with powerful ideas for tomorrow. It has been a privilege to serve on the Energy Highway Garry A. Brown, Chairman, New York Task Force and we look forward to continuing to work with you, potential project developers, and State Public Service Commission others to bring this critical public-private initiative to fruition and ensure that New York stands as a Francis J. Murray, Jr., President leader in energy development and reliability.

and Chief Executive Ocer, New York State Energy Research and Development Authority Gil C. Quiniones Joseph Martens Kenneth Adams Garry A. Brown Francis J. Murray, Jr.

4 e N e r GY h i G h wAY tA s k f o r c e letter to GoverNor ANdrew m. cuomo 5

years and decades to come. The power Introduction system in New York, comprising the generation, transmission, distribution, and consumer segments illustrated in Figure 1, is a complex network of hundreds of large A

modern, ecient, and environmentally and small power companies, producing sustainable electric power system in and delivering electric energy along New York State is the lifeblood of a tens of thousands of miles of overhead vibrant and growing economy, fueling and underground power lines to millions job creation, innovation, and new of residential, commercial, and industrial technologies from mobile devices to consumers. The Energy Highway electric vehicles. New York State is moving initiative focuses on the generation and aggressively to ensure that its residents and transmission systems to strengthen and businesses will have a safe, reliable, enhance the foundation of New Yorks aordable, and clean energy supply in the energy system.

figure 1 ENERGY HIGHWAY Generation Transmission Distribution Consumers 6 iNtroductioN iNtroductioN 7

We can build a new energy system across our entire State.

N.Y. GoverNor Andrew M. Cuomo 2012 State of the State Address

Generation New Yorks diverse sources of power generation include fossil fuels such as natural gas, oil, and coal; renewable resources such as hydropower, wind, solar, and biomass; and nuclear power. Governor Andrew M. Cuomos Power New York Act of 2011 instituted a streamlined permitting process for construction of new and repowered power plants, while New Yorks Renewable Portfolio Standard (rPs) provides important "nancial incentives to develop renewable energy resources statewide. Modernizing our generation assets promotes environmental and eciency goals and preparing well in advance for the potential closure of power plants is critical to safeguarding system reliability and protecting consumers.

Transmission and Distribution Ensuring the ecient transmission of power by reducing bottlenecks and deploying advanced smart technologies improves overall electric system operation and optimizes the use of existing assets in New York by allowing lower-cost and cleaner power to reach consumers. Investments in the transmis-sion and distribution systems can reduce customer costs over the long-term, improve safety and reliability, and protect the environment while immediately creating jobs and economic development. Investment in cost-eective Smart Grid technologies and encouraging commercial innovation in the power sector is vital to continuing the reliable and ecient operation of the energy system.

Consumers Ecient consumption of energy reduces costs and bene"ts the environment, and is advanced by several major State initiatives. For example, Governor Cuomos On-Bill Recovery Financing Program, implemented in January 2012, oers "nancing for home energy eciency improvements through utility bills while creating jobs. The NY-Sun initiative, announced by Governor Cuomo in January 2012, encourages installation of solar technology, reducing fossil fuel consumption and emissions. In April 2012, the Governor announced a $450 million program to reduce energy consumption in State buildings by 20 percent.

Ongoing investments through the Public Service Commission, New York State Energy Research and Development Authority, New York Power Authority, and Long Island Power Authority programs in the ecient use of energy provide bene"ts for all electricity consumers by keeping wholesale energy costs low during peak periods and improving the environment.

Energy Highway The Energy Highway Task Force presents in this Blueprint immediate actions and In developing the Blueprint, the Energy Highway Task Force notes that New policy recommendations to modernize the power generation and transmission Yorks State Energy Plan is in development, with an expected release in 2013.

systems to achieve vital safety, reliability, aordability, and sustainability goals on The Blueprint will provide input to the development of the State Energy Plans behalf of all New Yorkers. policies, strategies, and recommendations.

0 iNtroductioN iNtroductioN

Executive Summary The Blueprint of the Energy Highway advances a strong public-private initiative to improve the States energy infrastructure, starting immediately, in order to enhance system reliability and eciency, minimize environmental impacts, and generate long-term customer bene"ts. These actions are expected to result in approximately $5.7 billion1 in public and private investments over the next "ve to 10 years, supporting jobs in New York during construction. The Blueprint provides for as much as 3,200 megawatts (mw) of additional electric generation and transmission capacity and renewable power generation.

The Blueprints actions and recommendations will unify the States eorts to create an energy infrastructure that will serve the States residents and businesses in the decades to come. Construction of the new transmission capacity called for under the Blueprint would solve a decades-old problem: the limitations of the States electric grid to transmit available, cheaper upstate power to downstate when demand is high. The Blueprint achieves this public policy goal with a "rst-of-its-kind solicitation of new transmission projects. The Blueprints call for immediate development and initial implementation of detailed contingency plans to address potential power plant closures demonstrates the States assumption of a new leadership role in challenging the market to prepare for and meet future uncertainties impacting the bulk electric system.

Construction of the new renewable generation called for under the Blueprint, and the recommended extension of funding for the States Renewable Portfolio Standard (rPs) to well beyond its current 2015 end date, signals the States unequivocal commitment to a future sustainable power generation sector at a time when the expiration of federal tax credits as well as market conditions are

1. One megawatt (mw) equals 1,000 kilowatts (kw) and is enough power to meet the needs of 800 to 1,000 average homes.

2 r u N N i N G f o ot e r executive summArY 3

working against such a vision. The Blueprints call for repowering major power generation facilities on Long Island and elsewhere demonstrates the States ongoing commitment to a cleaner environment. Accelerating utility capital and operation and maintenance spending on the States electric and natural gas infrastructure will result in enhanced reliability and safety for utility customers while generating substantial economic development bene"ts for the States The Blueprints actions overall economy. In addition, the Blueprint puts forward a coordinated public and private sector approach for Smart Grid to transition the aging existing electric system into the 21st Century grid.

and recommendations In response to a Request for Information (rfi) issued in April 2012, the Task Force received a broad spectrum of responses ranging from speci"c project will unify the States proposals and policy recommendations to advanced technologies suggestions.

This variety of responses, from 85 private developers, investor-owned utilities, "nancial institutions, and other entities, encompassing 130 proposals and con-efforts to create an energy cepts, provided the Task Force an unprecedented insight into the availability of projects and interest of stakeholders in New York State. The projects proposed infrastructure that will serve the States residents in rfi responses represent more than 25,000 mw of capacity from new and existing generation and transmission; by way of comparison, the States current total installed generating capacity is 39,570 mw.

and businesses in the decades to come.

4 executive summArY executive summArY 5

Thirteen speci"c actions involve State agencies and authorities with partners

  • Build up to $35 million worth of strategic transmission upgrades to remove in the private sector and are grouped under the following areas to achieve the a potential impediment to additional renewable energy development in objectives set forth by the Task Force to advance Governor Andrew M. Cuomos Northern New York.

vision for the Energy Highway.

  • Perform resource characterization2 studies for oshore wind development in the Atlantic Ocean.
  • Initiate process to repower existing inecient power plants of approximately 750 mw on Long Island, at an estimated investment of $1.5 billion to $2 billion.
  • Require utilities to evaluate repowering power plants as a potential solution when plants needed for reliability are scheduled for retirement.
  • Create a new incentive fund for greenhouse gas emissions and particulate matter Expand and Strengthen the Energy Highway reductions in the electricity sector; institute mechanisms to mitigate impacts
  • Build $1 billion worth of electric transmission projects totaling over 1,000 mw of on select aected communities from retirements of fossil-fuel power plants.

capacity, providing an alternative to locally constructed generation of equal capacity, and allowing energy produced at upstate power plants, including wind farms, to reach downstate consumers.

  • Develop Reliability Contingency Plans for potential power plant retirements in cases that could impact the reliability of the system.
  • Support "exibility in contracting for public power authorities, to facilitate public-private partnerships. Drive Technology Innovation
  • Leverage the Smart Grid Program to advance the long-term goals of the Energy Highway with an investment of $110 million; provide additional support for Smart Grid technologies through an investment of $80 million focused on demonstration of new technologies in power grid system operations, security, and energy storage.
  • Dedicate $10 million to further advance New York as a national center for Accelerate Construction and Repair Smart Grid technology and applications and to lead a statewide eort to house
  • Advance up to $800 million of investments in electric generation, transmission, a federal Smart Grid Technology Hub in New York, in partnership with national and distribution to enhance reliability, safety, and storm resilience. laboratories and other industry partners; dedicate up to $50 million additional in
  • Advance up to $500 million of investments in natural gas distribution to reduce funding and other resources in the near-term to help support an Advanced costs to customers and enhance reliability, safety, and emission reductions. Energy Management System Control Center in New York, along with a Smart Energy Utility application program targeted at system operation.

Support Clean Energy

  • Execute new contracts for up to $250 million within the next year with renewable energy developers under the Renewable Portfolio Standard (rPs) to leverage an additional $425 million in private-sector investment to build up to 270 mw; continue to invest annually with future contract solicitations in new large-scale 2. Resource characterization studies provide more detailed information on the overall power renewable energy projects. generation potential, constructability, and permitting feasibility off the New York coast and can include the evaluation of wind speeds, ocean floor and geological conditions, environmental considerations, existing uses of the ocean area, and other factors.

6 executive summArY executive summArY 7

The Task Forces recommended actions take New York beyond the business-as-usual replacement plans for aging infrastructure and lay the groundwork for a signi"cantly improved energy system for the States businesses and residents.

These actions are expected to have short-, medium-, and long-term positive environmental and economic development bene"ts across the State.

Consumers are expected to experience lower energy costs in the long-term.

Enhanced reliability of the energy system is anticipated due to increased transmission capacity and "exibility of operation. The increased utilization of more ecient power plants and development of new renewable energy sources is projected to reduce air pollution and contribute to the mitigation of climate change. The electricity system statewide will be cleaner, more reliable, and ready to support New Yorks growing economy in the 21st century.

In addition to actions spurring investment in infrastructure, the Task Force puts forward the following policy recommendations to further advance New Yorks leadership in the energy industry:

  • Support workforce development for the energy industry.
  • Provide long-term certainty for renewable energy development in New York beyond 2015.
  • Advance policies to encourage distributed renewable energy development; continue and build on the NY-Sun initiative.
  • Evaluate cost recovery opportunities for oshore wind.
  • Support additional eorts to transition to a cleaner power generation "eet on Long Island.
  • Support energy eciency and other demand-side measures.
  • Ensure electric utility capital expenditure plans include cost-eective Smart Grid technologies.
  • Evaluate policies and regulatory mechanisms, such as the riio (Revenues = Existing processes can be expedited, where possible, to ensure swift, ecient, Incentives + Innovation + Outputs)3 framework recently adopted in the United and eective implementation of the proposed actions. The Blueprint recommends Kingdom, to encourage technological and commercial innovation. steps to signi"cantly reduce the time required for development of energy infrastructure, including:

Expediting Implementation The Energy Highway initiative brought together the States principal energy,

  • Executing a "rst-of-its-kind solicitation of new transmission projects by the environmental, and economic development agencies and authorities to partner Department of Public Service to initiate private sector development to achieve in a unique forum to undertake a broad planning eort and chart concrete public policy goals.

actions and implementation plans (see Appendix A for details on the

  • Initiating reliability contingency planning years in advance of potential notices of Energy Highway process to date). This collaboration allows for expedited closure by power plants to ensure solutions can be in place to maintain reliability.

implementation of the recommended actions, some through existing

  • Accelerating investments in the public and private sector to immediately spur processes and others through newly developed or expanded processes. economic development in New York and achieve system bene"ts.

Under Governor Cuomos leadership, State agencies and authorities are poised to immediately begin working with the private sector to pursue the

3. riio is the United Kingdoms new approach to regulating their electric and natural gas transmission. outlined actions to realize the bene"ts for New York.

8 executive summArY executive summArY 9

Table 1 Summary of Energy Highway Task Force Actions ACTION LeAD PubLIC PArTNerS eSTImATeD PubLIC AND PrIvATe INITIATe eSTImATeD COmPLeTION PArTNerS 4 INveSTmeNT POTeNTIAL DATe exPAND AND StreNgtheN the eNergY highwAY initiate alternating Current transmission upgrades to increase the capacity to move DPS NYPA, liPA, NYiSo, $1 billion total for multiple projects totaling by the end of 2012 in phases from 2015 to 2018 excess power from upstate to downstate ious, Private Sector over 1,000 Mw Develop and implement reliability Contingency Plans to prepare for potential large DPS NYPA, NYiSo, ious, $1 to $2 billion totaling approximately by the end of 2012 Summer 2016 if needed, additional power plant retirements Private Sector 1,200 Mw if needed, additional as identified as identified early 2013 Provide public power entities flexibility in contracting for public-private partnerships NYPA, liPA end of 2013 AccelerAte coNStructioN AND rePAir accelerate investments in electric generation, transmission, and distribution for DPS, NYPA ious $800 million early 2013 end of 2017 reliability, safety, and storm resilience accelerate investments in natural gas distribution to reduce costs to consumers DPS ious $500 million by the end of 2012 end of 2017 and promote reliability, safety, and emission reductions SuPPort cleAN eNergY Conduct a competitive solicitation for renewable resources in New York as part of NYSerDA DPS, Private Sector $675 million for new capacity approaching by the end of 2012 awards made summer 2013, projects the States renewable Portfolio Standard 270 Mw in service by end of 2014 initiate transmission upgrades in Northern New York to help facilitate renewable NYPA, NYSerDA DPS $35 million by the end of 2012 Ongoing energy development Characterize offshore wind resources and evaluate cost recovery opportunities NYSerDA NYPA, liPA, Dec, DoS, $2 to $5 million by the end of 2012 2014 ious, Private Sector initiate process for repowering of inefficient power plants on long island and support liPA Private Sector $1.5 to $2 billion to repower approximately Summer 2013 2019 to 2020 additional efforts to transition to a cleaner power generation fleet on long island 750 Mw require utilities to evaluate repowering as an alternative to power plant retirements DPS ious, Private Sector by the end of 2012 Ongoing, complete as needed when the plant is needed for reliability establish a Community Support Plan and greenhouse gas emissions reduction Dec, NYSerDA DPS, eSD early 2013 Ongoing, open programs for Program in the electricity sector applications by 2014 Drive techNologY iNNovAtioN fund Smart grid demonstration projects NYSerDA DPS $190 million early 2013 Ongoing Develop an advanced energy Management System Control Center and pursue a NYSerDA, NYPA NYiSo, academia, $60 million early 2013 Ongoing federal Smart grid Technology Hub federal government, ious, Private Sector Total estimated investment Potential up

4. Definitions: New York State Department of Public Service (dPs); New York Power Authority (NYPA); Long Island to $5.7 billion Power Authority (liPA); Investor-Owned Utilities (ious); New York Independent System Operator (NYiso); New York State Energy Research and Development Authority (NYserdA); New York State Department of Environmental Potential Capacity installed totals as Conservation (dec); New York State Department of State (dos); Empire State Development (esd). much as 3,200 Mw 20 executive summArY executive summArY 2

figure 2 Timeline of Energy Highway Blueprint Impacts E S T I M AT E D I N V E S T M E N T P O T E N T I A L l P O T E N T I A L C A PA C I T Y I N S TA L L E D ARROw = C O M P L E T I O N B E YO N D 2 0 1 8 2012 2013 2014 2015 2016 2017 2018 initiate alternating Current transmission upgrades to increase the capacity to move excess electric power from upstate to downstate

$1 billion l 1,000 Mw exPAND AND StreNgtheN Develop and implement reliability Contingency Plans to prepare the eNergY for potential large power plant retirements

$1 - $2 billion l 1,200 Mw highwAY Provide public power entities flexibility in contracting for public-private partnerships accelerate investments in electric generation, transmission, $800 million and distribution for reliability, safety, and storm resilience AccelerAte coNStructioN accelerate investments in natural gas distribution to reduce costs to AND rePAir $500 million consumers and promote reliability, safety, and emission reductions Conduct a competitive solicitation for renewable energy resources in New York as part of the States renewable Portfolio Standard

$675 million l 270 Mw SuPPort cleAN eNergY initiate transmission upgrades in Northern New York to help $35 million facilitate renewable energy development Characterize offshore wind resources and evaluate cost $2 - $5 million recovery opportunities

initiate process for repowering of inefficient power plants on long island

$1.5 - $2 billion l 750 Mw

require utilities to evaluate repowering as an alternative to power plant retirements when the plant is needed for reliability

establish a Community Support Plan and greenhouse gas emissions reduction Program in the electricity sector

fund Smart grid demonstrations projects $190 million Drive techNologY

iNNovAtioN Develop an advanced energy Management System Control $60 million Center and pursue federal Smart grid Technology Hub 22 executive summArY executive summArY 23

Table 2 Summary of Energy Highway Task Force Policy Recommendations POLICy reCOmmeNDATIONS PArTNerS exPAND AND StreNgtheN the eNergY highwAY Support workforce development for the energy industry NYSerDA, NYPA SuPPort cleAN eNergY Provide long-term certainty for renewable energy development in New York NYSerDA, DPS beyond 2015 advance policies to encourage distributed renewable energy development; NYSerDA, DPS continue and build on the NY-Sun initiative evaluate cost recovery opportunities for offshore wind NYSerDA, DPS Support additional efforts to transition to a cleaner power generation fleet liPA on long island Support energy efficiency and other demand-side measures all Drive techNologY iNNovAtioN ensure electric utility capital expenditure plans include cost-effective DPS Smart grid technologies evaluate policies and regulatory mechanisms, such as the riio (revenues = DPS, NYSerDA incentives + innovation + Outputs) framework recently adopted in the united Kingdom, to encourage technological and commercial innovation 24 executive summArY ruNNiNG footer 25

per, erat ut sed ante dolor dui a, risus ocia auctor, orci mauris mauris euismod, ante iaculis posuere nec elit, lorem curabitur lobortis. Platea non praesent mauris, nunc ac consequat, eget donec, volutpat proin sed. Blueprint for the Future Euismod vehicula wisi, sed vivamus placerat ut cras purus, bibendum adipiscing a magna duis The New York State Energy Highway Blueprint provides an action plan for neque, erat sed at, et inceptos molestie quis in. implementing Governor Andrew M. Cuomos bold proposal for a public-private initiative to rebuild and rejuvenate New York States electric power system to A turpis, nonummy vitae commodo, ante ipsum meet the needs of a 21st century economy and society.

The Blueprint was developed by the Energy Highway Task Force, appointed eget posuere, augue nibh, proin dictum eleifend by the Governor shortly after he announced the Energy Highway initiative in his January 2012 State of the State address. The Task Force, consisting of the enim a praesent diam. Non per, erat ut sed ante States principal energy, environmental, and economic development ocials, issued a Request for Information (rfi) in April 2012 that elicited responses from dolor dui a, risus ocia auctor, orci mauris mauris 85 private developers, investor-owned utilities, "nancial institutions, and other entities encompassing 130 proposals and concepts. The projects proposed euismod, in rfi responses represent more than 25,000 mw of capacity from new and existing generation and transmission.

As summarized in Appendix B of the Blueprint, the responses covered a wide range of options, including proposals for new and upgraded transmission lines, the repowering5 or upgrading of existing power plants, and the construc-tion of new generating plants, including the development of new renewable resources. Rather than proposing individual projects, some submittals supported emerging technologies, such as energy storage and solar power, or advocated certain energy policies and priorities.

The Blueprint accounts for the various ideas and projects proposed by the respondents to the rfi, feedback and comments received by multiple stakeholders throughout the State, and relevant publicly available reports and analyses. The actions included in this Blueprint have bene"ts across New York

5. Repowering is a term used to describe the retirement of a power plant and the reconstruction of a new and more efficient plant with new equipment on the same property in its place.

26 2 6 r u N N i N G f o ot e r bluePriNt for the future 27

State (see Figure 3: Map of Energy Highway Actions, which shows the region(s) aecting power supplies and the communities where the plants are located.

tied to each action proposed by the Task Force). While the challenges are formidable, this Blueprint demonstrates that they can be The Energy Highway initiative is closely linked to Governor Cuomos NY met in a manner that advances the States energy, environmental, and economic Works program, an eort to forge new partnerships with private enterprises to development goals. In seeking a widespread response to the rfi, the Energy rebuild and modernize New Yorks infrastructure and to leverage the States Highway Task Force termed this The Time for Powerful Ideas. Those ideas have "nancial and technical resources to generate billions of dollars in private now emerged, setting the stage for equally powerful actions.

investment and support jobs. In keeping with these objectives, the Blueprint is designed to create an environment to spur private-sector involvement in carrying out the Energy Highway initiative and oers the potential for State assistance in addressing "nancial, regulatory, and other issues.6 The actions should be implemented in a manner consistent with restructured7 energy markets to deliver the most economical energy available to serve the power needs of all New Yorkers.

The Energy Highway initiative recognizes and responds to the following challenges:

  • Reliable, clean, and competitively-priced energy is essential for quality of life and economic growth and requires a reliable and ecient infrastructure to deliver energy.
  • Excess power is available in upstate New York, while demand is increasing in the downstate area. The construction and operation of power plants is less expensive in the upstate region as compared to downstate.
  • Congestion points, or bottlenecks, on the electric transmission system prevent lower-cost and/or cleaner power from "owing easily from upstate to downstate, increasing costs for consumers and preventing improvements in environmental quality because the older and less ecient power plants are forced to run more frequently than would otherwise be necessary.
  • The signi"cant potential to develop wind projects and other renewable energy sources in upstate New York may become impeded by transmission constraints that could prevent their full output from reaching consumers.
  • The existing electric and natural gas infrastructure requires upgrades and repairs to ensure continued safe and reliable operation, to provide storm resilience, and to potentially lower costs for consumers.
  • A number of factors, including the current low price of natural gas, pending environmental regulations, and uncertainty of federal licenses, impact the continued viability of certain power plants and could lead to their retirements,
6. System reliability issues continue to be managed and guided by the New York State Department of Public Service (dPs) and the New York Independent System Operator (NYiso),

and this Blueprint is not intended to duplicate the reliability evaluation and responsibilities of the dPs and the NYiso.

7. Restructured energy markets were established in New York State in 1997 and 1998 to create competition in the supply of electricity.

28 b l u e P r i N t f o r th e f u t u r e bluePriNt for the future 29

FIGURE 3 Map of Energy Highway Actions northern new york

  • Initiate transmission upgrades to help facilitate renewable energy development.

western new york

  • Establish a Community Support Plan and Greenhouse Gas Emissions Reduction Program.
  • Utilities to evaluate repowering as an alternative to power plant NORTHERN NEW YORK retirements when the plant is needed for reliability. central new york
  • Initiate Alternating Current transmission upgrades to increase the capacity to move excess power from upstate to CENTRAL NEW YORK downstate.
  • Accelerate investments in public and private sector WESTERN NEW YORK electric generation, transmission, and distribution and private sector natural gas distribution.

HUDSON VALLEY hudson valley

  • Initiate Alternating Current transmission upgrades downstate to increase the capacity to move excess power
  • Initiate Alternating Current from upstate to downstate. DOWNSTATE transmission upgrades to
  • Develop Reliability Contingency Plans to prepare increase the capacity to move for potential large power plant retirements. excess power from upstate to downstate.
  • Characterize offshore wind resources and evaluate cost recovery opportunities.
  • Initiate process for repowering of inefficient power plants on Long Island and support additional efforts statewide to transition to a cleaner
  • Develop Reliability Contingency Plans to prepare for potential large power power generation fleet on plant retirements. Long Island.
  • Accelerate investments in public and private sector electric generation, transmission, and distribution and private sector natural gas distribution.
  • Conduct a competitive solicitation and contract for new renewable resources as part of the New York State Renewable Portfolio Standard.
  • Establish a Community Support Plan and Greenhouse Gas Emissions Reduction Program.
  • Utilities to evaluate repowering as an alternative to power plant retirements when the plant is needed for reliability.
  • Leverage existing programs to support the goals of the Energy Highway and increase funding for strategic demonstration.
  • Pursue a federal Smart Grid Technology Hub and an Advanced Energy Management System Control Center.

30 R U N N I N G F O OT E R BLUEPRINT FOR THE FUTURE 31

per, erat ut sed ante dolor dui a, risus ocia auctor, orci mauris mauris euismod, ante iaculis posuere nec elit, lorem curabitur lobortis. Platea non praesent mauris, nunc ac consequat, eget donec, volutpat proin sed. A Four-Part Strategy Euismod vehicula wisi, sed vivamus placerat ut cras purus, bibendum adipiscing a magna duis The Energy Highway Task Force has identi"ed four main areas of focus in this neque, erat sed at, et inceptos molestie quis in. Blueprint that address the objectives and goals identi"ed by Governor Cuomo and in the rfi:

A turpis, nonummy vitae commodo, ante ipsum eget posuere, augue nibh, proin dictum eleifend enim a praesent diam. Non per, erat ut sed ante dolor dui a, risus ocia auctor, orci mauris mauris expand and Strengthen accelerate Construction Support Clean energy Drive Technology the energy Highway and repair innovation euismod, The following recommended actions include short-, medium-, and long-term steps to build the path forward to achieve the stated public policy goals. These actions are speci"c, assigned to State entities for execution or implementation, and laid out on a timeline to ensure the mission of the Governors Energy Highway initiative is achieved.8 The Energy Highway Task Force reviewed each rfi response and assessed the contribution of each to meeting the identi"ed objectives. Collectively the responses provided substantial value to the preparation of the Blueprint by supplying useful information regarding both the public and private interests in various projects and issues.

8. Actions recommended by the Task Force are subject to all applicable regulatory and statutory requirements.

32 r u N N i N G f o ot e r A four-PArt strAteGY 33

The Task Forces long-term view looks beyond the typical 10-year forecasts and projections in traditional energy system industry models. Infrastructure investments, especially those in electricity transmission, provide bene"ts for decades, requiring a vision that considers costs and bene"ts over a 40- to 50-year horizon.

34 r u N N i N G f o ot e r ruNNiNG footer 35

per, erat ut sed ante dolor dui a, risus ocia auctor, orci mauris mauris euismod, ante iaculis posuere nec elit, lorem curabitur lobortis. Platea non praesent mauris, nunc ac consequat, eget donec, volutpat proin sed. Expand and Strengthen Euismod vehicula wisi, sed vivamus placerat ut The Energy Highway cras purus, bibendum adipiscing a magna duis neque, erat sed at, et inceptos molestie quis in.

New York has a reliable electric system, but it is a system consisting of A turpis, eSTImATeD INveSTmeNT POTeNTIAL transmission lines and power plants that are aging. Some of these facilities also have uncertain futures. The Energy Highway initiative leverages ongoing nonummy up to $2 billion replacement in-kind of aging infrastructure and identi"es speci"c areas to POTeNTIAL CAPACITy INSTALLeD expand transmission capacity to move excess power from upstate power vitae up to 2,200 Mw of transmission and producers to downstate, while providing signi"cant reliability, economic, and generation capacity by 2018 environmental bene"ts. The following actions and recommendations improve commodo, the eciency of the Energy Highway system and bene"t New York residents exPeCTeD beNeFITS and businesses:

ante ipsum enhance reliability; increase system operations flexibility; address major

  • Expand transmission to carry excess power from upstate: initiate Alternating eget posuere, planning uncertainties; reduce Current (Ac) electric transmission upgrades to increase the capacity to move transmission congestion and improve excess electric power from upstate to downstate by over 1,000 mw.

augue nibh, efficiency

  • Plan for possible power plant retirements: develop and implement Reliability Contingency Plans to prepare for potential large power plant retirements.
  • Support public-private partnerships: provide public power entities "exibility in contracting for public-private partnerships that can bene"t the States energy infrastructure.
  • Support workforce development for the energy industry.

The NYiso has in place both reliability and economic planning processes that forecast needs and upgrade opportunities looking out over 10 years. The Energy Highway initiative is not intended to replace these processes, but rather to supplement them. The con"uence of aging infrastructure with multiple power plant retirements due to economics and "uctuating fuel prices, along with the anticipated or potential retirement of power plants due to increasing environmental restrictions or regulatory issues, calls for a broader planning 36 3 6 r u N N i N G f o ot e r exPANd ANd streNGtheN the eNerGY hiGhwAY 37 DRAFT CONFIDENTIAL DRAFT CONFIDENTIAL

figure 4 Expand and Strengthen the Energy Highway Timeline E S T I M AT E D I N V E S T M E N T P O T E N T I A L l P O T E N T I A L C A PA C I T Y I N S TA L L E D 2012 2013 2014 2015 2016 2017 2018 initiate alternating Current transmission upgrades to increase the capacity to move excess electric power from upstate to downstate

$1 billion l 1,000 Mw exPAND AND StreNgtheN Develop and implement reliability Contingency Plans to prepare the eNergY for potential large power plant retirements

$1 - $2 billion l 1,200 Mw highwAY Provide public power entities flexibility in contracting for public-private partnerships eort guided by public policy. In addition to responding to each individual investments, Ac investments provide the additional bene"t of contributing to situation through the NYiso processes, New York requires a comprehensive a system that is more robust and "exible with increased reliability bene"ts, rFI reSPONSeS The Task Force received three view of how to best position the electric system to bene"t ratepayers over thereby increasing the area within which generation facilities can be placed to proposals in support of Ac the long-term. respond to future system needs. transmission upgrades, accounting for 20 individual The reduction of in-state transmission constraints and development of projects and demonstrating that Expand transmission to carry excess power from upstate to downstate additional transmission capacity is expected to reduce air emissions in the the private sector is positioned to support the proposed action:

New York States electric transmission system faces a longstanding problem of New York City area, support the development of upstate renewable energy congestion at critical points on the pathways linking upstate and downstate New projects, and lower wholesale energy prices for downstate energy consumers.

  • Boundless Energy, llc
  • CityGreen Transmission, Inc.

York. Together, New York City, Long Island, and Westchester County account Further, upgrades should provide economic development bene"ts to upstate

  • New York Transmission for more than half of the demand for electricity in the State and this demand is by enabling excess energy from upstate power plants to reach downstate Company (Transco) increasing; however, in times of peak demand and high prices, lower-cost and/or markets, improving the "nancial viability of existing upstate power producers, Additionally, ls Power cleaner power available from upstate cannot reach these densely populated and allowing existing and new wind farms and other renewable sources in Transmission submitted suggestions for facilitating Ac areas because of the transmission bottlenecks. Congestion can have adverse that region to access higher-priced energy markets. transmission development.

environmental and economic consequences when older plants in urban areas run more frequently than they otherwise would if power from other sources of energy could reach these areas. The Energy Highway Blueprint addresses the challenges of a congested transmission system by calling for the upgrade of existing lines and the building of new lines following existing rights-of-way.

The Ac electric transmission system is the backbone of a reliable transmission system. The Ac system promotes reliability through its ability and "exibility to respond to emergencies on the system. Unlike Direct Current (dc) transmission lines, the Ac system also allows for the interconnection of needed generation resources at multiple points on the system. dc lines serve the purpose of moving energy over long distances and interconnecting incompatible systems.

Prudent transmission planning evaluates all alternatives-Ac transmission, dc transmission, generation, and energy eciency-so as to identify new infrastruc-ture to provide the most robust system at a reasonable cost to ratepayers.

While congestion can also be reduced through generation or dc transmission 38 e x PA N d A N d s t r e N G t h e N t h e e N e r GY h i G h wAY exPANd ANd streNGtheN the eNerGY hiGhwAY 39

figure 5 ACTION Initiate Alternating Current transmission upgrades to increase New York State Transmission System, the capacity to move excess power from upstate to downstate 230 kV and Above, Including the Highest Area of Congestion11 ASSIgNeD AgeNCy New York State Department of Public Service PArTNerS New York Power Authority, Long Island Power Authority, New York Independent System Operator, Investor-Owned Utilities, Private Sector INITIATe By the end of 2012 eSTImATeD COmPLeTION DATe DPS permitting process complete in time to begin construction by 2014; projects to be completed in phases, expected from 2015 to 2018 eSTImATeD INveSTmeNT POTeNTIAL

$1 billion for a total of over 1,000 mw of increased capacity The Energy Highway Task Force recommends that the dPs invite developers and transmission owners to "le notices of intent to construct projects that would increase the capacity for transfer of electric power between upstate and Highest Area of Congestion:

Central New York and the lower Hudson Valley and New York City, thus relieving Central East New Scotland Leeds Pleasant Valley existing bottlenecks. These projects would also be expected to enhance system New York State Transmission System reliability into the future. Speci"cally, the dPs should call for projects that relieve 230 kV and above congestion, including those bene"ting the following transmission corridor Note: Projects that may relieve congestion in the consisting of: Central East-New Scotland-Leeds-Pleasant Valley between the highlighted area may not necessarily be physically Mohawk Valley Region, the Capital Region, and the Lower Hudson Valley (see located within this area.

Figure 5: New York State Transmission System, 230 kv and Above, Including the Highest Area of Congestion). and allocation. Following these submissions, dPs will initiate a pre-"ling, Based on the proposals received in response to the rfi, analysis conducted multi-agency review, and evaluation process leading to establishing deadlines by the Task Force in cooperation with the NYiso, and review of published stud- for applications, possibly phased according to which congested interfaces the ies such as the New York State Transmission Assessment and Reliability Study proposed transmission projects would address. After complete applications (stArs) issued in April 2012, the Task Force estimates that approximately 1,000 for certi"cates have been received, a coordinated hearing and decision phase of mw of cost-eective opportunities exist to upgrade the Ac transmission system.9 the certi"cation process will commence. The process will include an evaluation The dPs should call for each developer of a proposed project that meets of the economic bene"ts and environmental impacts of each project. It is these objectives to submit a letter of intent to the Public Service Commission expected that, subject to a determination granting a certi"cate, projects meeting (Psc) providing a detailed project description, including cost estimates, a target the objectives could begin construction in 2014.

date for "ling its Article vii10 application and its approach to cost recovery The Task Force anticipates that signi"cant bene"ts will result from upgrading the Ac transmission system. dPs, in its invitation to developers and transmission owners, should emphasize a preference for projects developed along existing

9. Transmission security and resource assessments were performed by Nexant and PowerGEM
10. Article vii of the New York Public Service Law sets forth the existing certification review process for siting major utility transmission facilities in New York State. Additional information about the siting process can be found on the dPs website: www.dps.ny.gov. 11. Information adapted from the NYisos Power Trends 2012: State of the Grid, page 31.

40 e x PA N d A N d s t r e N G t h e N t h e e N e r GY h i G h wAY exPANd ANd streNGtheN the eNerGY hiGhwAY 4

Table 3 rights-of-way or that include upgrades to existing lines. By doing so, it is expected that this initiative will minimize environmental impacts and potential Environmental Protection Agency (ePA) Actions Applicable to the Electricity Sector15 community opposition that could result from construction in new transmission rights-of-way. These targeted upgrades of the Ac transmission system can strengthen the statewide power grid and provide signi"cant reductions in CATegOrIeS ePA ACTION ObjeCTIveS STATuS OF ACTION nitrogen oxide (No x ) and particulate matter emissions in the downstate region.

The reduction of those emissions are particularly important because the CrITerIA Cross State air Pollution rule reduce sulfur dioxide and nitrogen oxide Court vacated Cross State air Pollution downstate region is designated nonattainment12 for the federal air quality stan- POLLuTANTS emissions from fossil fuel power plants in the rule on august 21, 2012, directed eastern u.S. ePA to enforce current rules until it dard for ozone, and No x emissions contribute to those elevated ozone levels. develops a substitute New Particulate Matter evaluate tightening existing fine particulate final rule required by Plan for possible power plant retirements National ambient air Quality standard December 14, 2012 Standards More than 40 percent of New Yorks existing power generating capacity is over 40 years old and more than 20 percent is over 50 years old.13 Recent New Sulfur Dioxide National More stringent sulfur dioxide emissions Promulgated June 2010 ambient air Quality Standard standards and pending environmental regulations (see Table 3: Environmental Protection New Nitrogen Dioxide National More stringent nitrogen dioxide emissions Promulgated february 2010 Agency (ePA) Actions Applicable to the Electricity Sector) coupled with ambient air Quality Standard standards low natural gas prices could lead to accelerated retirements of some of these New Ozone National ambient More stringent ozone emissions standards Promulgated March 12, 2008 older facilities. air Quality Standard The potential retirement of power plants creates uncertainties for the future Nitrogen Oxides reasonably Maintain this level of control for both Promulgated June 2012; requires of the States power supply. The Energy Highway Task Force recommends action available Control Technology particulate matter and ozone, and to assist that sources meet new limits by with attainment of both new ambient air July 1, 2014 to address two critical aspects of this uncertainty.

quality standards best available retrofit required under the federal regional haze Promulgated april 2012; requires

  • The proposed closure of power plants that are required to maintain system Technology provisions of the Clean air act that sources comply with limits by reliability can potentially impose additional costs on customers when the closing January 1, 2014 plant must be kept online at above market prices.
  • Either by virtue of plant size, location, or uncertainties regarding the timing merCury AND Maximum available Control More stringent mercury emission standards Promulgated february 2012 AIr TOxICS Technology for Mercury and for coal-fired power plants, and a range of of potential retirements, the electricity market may not be in a position to STANDArDS other pollutants other hazardous air pollutants emitted by coal- and oil-fired power plants respond adequately to the shutdown of certain power plants once retirement is announcedas is the potential case with the Indian Point Energy Center, a wASTe AND Coal Combustion Waste rule on disposal of coal combustion waste, expected 2013 2,066 mw nuclear power plant located in the lower Hudson Valley.14 wATer phasing out existing surface storage methods Wastewater Discharge More stringent regulation of wastewater These realities justify enhancements to the current process for managing regulations discharges from coal, oil, and gas expected april 2014 powered units.

power plant retirements.

In most cases to date, the market has responded adequately to the retirement Power Plant Cooling Water More stringent regulation on cooling water expected June 2013 intake Structures rule intake structures at existing facilities in order of plants by providing any needed capacity. Every two years the NYiso, the to limit harm to fish populations entity responsible for overseeing operations of the transmission system and greeNHOuSe greenhouse gas reporting Oil and gas facilities must track Promulgated November and gASeS rules for New Sectors greenhouse gas (ghg) emissions as part of December 2010 ePAs ghg report Program Tailoring rule raised threshold for best available Control Promulgated June 3, 2010

12. Areas that do not meet the federal Environmental Protection Agencys (ePA) health-based criteria for Technology for power plants emitting large permissible levels of air pollutants are designed nonattainment areas.

amounts of carbon dioxide

13. See Figure 10.
14. The Task Force makes no assumption as to the probability of a closure of the Indian Point Energy Center, New Source Performance More stringent ghg emission standards for expected 2013 and makes no determination of future events in this regard. This process is intended to provide a solution Standards new and modified power plants to maintain reliability in New York State in case of power plant closures, including a closure of Indian Point, and is not intended to indicate any proposed decision with regard to such closure.
15. Information adapted from the ePA website: www.epa.gov. Performance Standards for ghg emission standards for existing power unknown existing Plants plants 42 e x PA N d A N d s t r e N G t h e N t h e e N e r GY h i G h wAY exPANd ANd streNGtheN the eNerGY hiGhwAY 43

Figure 6 energy markets in New York, conducts a Reliability Needs Assessment. This RFI RESPONSES assessment builds on the utilities individual local transmission system plans Recent and Planned Generator Retirements as of Multiple proposals were submit-and results in a Comprehensive Reliability Plan that relies "rst on market-based September 2012 (Retirements Since 201017) ted in response to the RFI that could provide potential solutions solutions, but also contains regulated avenues to provide solutions with rate in a Reliability Contingency Plan for the Indian Point Energy recovery if the market solutions do not get implemented in time. The NYISO RETIREMENT STATUS FUEL SOURCE KEY Center, such as adding addi- also examines scenarios that could respond to needs, such as those created R = Retired tional generation capacity in the Fuel Source Hudson Valley or New York City by potential retirements of large coal and nuclear plants, but does not solicit P = Planned Coal N = Previously gave notice regions and upgrading transmis- solutions for such contingencies. but rescinded sion into the Hudson Valley or Oil/Gas/Kerosene New York City. In total, respon- New York has a regulatory process for managing power plant retirements, dents to the RFI identi"ed once the retirement is formally announced, to ensure that system reliability is 95 Plant Size (in MW) over 6,000 MW of generation, including repowering proposals, maintained. The State currently requires a power plant owner to provide six N Retirement to be located in the Hudson Status months notice to system operators of its plans to temporarily cease operations Valley or New York City regions and 5,700 to 7,600 MW of DC (also referred to as mothballing) or to completely shut down and retire.16 Both transmission to terminate in the NYISO and the utility that owns the transmission system surrounding the ST. LAWRENCE the Hudson Valley or New York City. Many of the projects retiring power plant evaluate whether the pending loss of capacity would referenced in the previous result in adverse reliability impacts. Under the existing process, if negative section under AC transmission 95 upgrades are also applicable. impacts are identi"ed, the local transmission owner proposes investments in OSWEGO N

These responses demonstrate 55 its transmission and/or distribution systems to solve the potential problem. In that the private sector is posi- N tioned to support proposed cases where reliability is at risk from the pending retirement, the power plant potential Reliability Contingency and utility may negotiate a Reliability Support Services contract, at above-Plan for the Indian Point Energy MONROE Center. The certainty and timing market rates, to keep the power plant operating until the alternate solution is ONONDAGA of construction will be critical implemented. This contract provides the power plant owner compensation for a 80 components in the Reliability Contingency Plan development. limited time to ensure reliability. Though only one instance to date has required 18 R YATES Proposals were submitted by: R a Reliability Support Services contract, executed in August 2012, this situation TOMPKINS

  • American Electric Power may arise again in the future, putting consumers at risk for additional costs. CHAUTAUQUA
  • Boundless Energy, LLC BROOME The Energy Highway Task Force recommends that the existing process be 108
  • CityGreen Transmission, Inc. R 306
  • Clover Leaf Power, LLC enhanced to minimize the potential additional cost burdens on customers and P
  • Cogen Technologies Linden 635 80 95 48 Venture to more proactively prepare for potential critical situations in advance of when P R R R
  • Competitive Power power plants provide ocial notice of plans to retire (see Figure 6 for a map of Ventures, Inc.
  • Cricket Valley Energy Recent and Planned Generator Retirements as of September 2012 [Retirements Center, LLC Since 2010] ). Dynamic and proactive scenario planning can provide many
  • GenOn Energy, Inc. 40
  • Hydro-Quebec Production bene"ts. For example, preparations for replacement solutions years in advance NEW YORK CITY R
  • Iberdrola, USA can minimize the need for Reliability Support Services contracts to safeguard
  • New York Transmission QUEENS Company (Transco) the power system and thus reduce costs to customers. This long-term view will 200 NASSAU
  • NextEra Energy Resources also allow for longer-term alternative solutions, such as repowering of existing BROOKLYN R
  • NRG Energy, Inc.
  • NYC Energy, LLC generators and construction of new power plants, transmission, or other 567 64
  • Pure Energy Infrastructure, LLC infrastructure projects that require more than the formal six-month notice R R
  • Taylor Biomass Energy- 320 100 18 Montgomery, LLC period to implement. N R R
  • TransCanada Corporation
  • Transmission Developer, Inc.,

Champlain Hudson Power Express Project

  • US Power Generating Company (US PowerGen) 16. PSC 2005 Order issued in Case 05-E-0889, Order Adopting Notice Requirements for Generation Unit 17. Information adapted from the NYISOs website, using Retirement Notices provided under Planned
  • West Point Partners, LLC Retirements (December 20, 2005). Generation Retirements section, as well as recent Load & Capacity Data Reports.

e x PA N D A N D S t R e N G t h e N t h e e N e R GY h I G h WAY exPAND AND StReNGtheN the eNeRGY hIGhWAY