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{{#Wiki_filter:United States Nuclear Regulatory Commission Official Hearing Exhibit                                   NYS000448A Entergy Nuclear Operations, Inc.                                     Submitted: November 9, 2012 In the Matter of:
{{#Wiki_filter:RUNNING FOOTER 1
DRA F T CO NF I DE NT I A L 1
DRA F T CO NF I DE NT I A L Issued 2012 by the New York Energy Highway Task Force N.Y. GOVERNOR Andrew M. Cuomo New York Energy Highway Blueprint NYEnergyHighway.com United States Nuclear Regulatory Commission Official Hearing Exhibit 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Exhibit #: NYS00448A-00-BD01                   Identified: 11/14/2012 Admitted: 11/14/2012                           Withdrawn:
ASLBP #: 07-858-03-LR-BD01 Docket #: 05000247 l 05000286 Exhibit #:
Rejected:                                        Stricken:
Identified:
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
Admitted:
Withdrawn:
Rejected:
Stricken:
Other:
NYS00448A-00-BD01 11/14/2012 11/14/2012 Originally Identified as BRD000007 NYS000448A Submitted: November 9, 2012


ENERGY HIGHWAY Generation         Transmission Distribution Consumers
ENERGY HIGHWAY Generation Transmission Distribution Consumers


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
coNteNts coNteNts Energy Highway Task Force Letter to Governor Andrew M. Cuomo Introduction Executive Summary Blueprint for the Future A Four-Part Strategy Expand and Strengthen the Energy Highway Expand transmission to carry excess power from upstate to downstate ACTION Initiate Alternating Current transmission upgrades to increase the capacity to move excess power from upstate to downstate Plan for possible power plant retirements ACTION Develop and implement Reliability Contingency Plans for potential large power plant retirements Support public-private partnerships ACTION Provide public power authorities flexibility in contracting Support workforce development for the energy industry Accelerate Construction and Repair ACTION Accelerate investments in electric generation, transmission, and distribution to strengthen reliability, safety, and storm resilience ACTION Accelerate investments in natural gas distribution to reduce cost to customers and promote reliability, safety, and emission reductions Support Clean Energy Encourage the development of renewable generation ACTION Conduct a competitive solicitation for new renewable energy resources as part of the New York State Renewable Portfolio Standard Provide long-term certainty for renewable energy development beyond 2015 Facilitate further development of upstate renewable energy projects ACTION Initiate transmission upgrades in Northern New York to help facilitate renewable energy development Advance policies to encourage distributed renewable energy development; continue and build on the NY-Sun initiative Advance offshore wind development in New York ACTION Characterize offshore wind resources and evaluate cost recovery opportunities Support repowering of existing power plants to improve efficiency and protect the environment ACTION Initiate process for repowering of inefficient power plants on Long Island and Contents support additional efforts to transition to a cleaner power generation fleet on Long Island ACTION Require utilities to evaluate repowering as an alternative solution for power plant retirements where the power plant is expected to be needed for reliability ACTION Establish a Community Support Plan and Greenhouse Gas Emissions Reduction Program in the electricity sector Support energy efficiency and other demand-side measures Drive Technology Innovation Advance Smart Grid in New York ACTION Fund Smart grid demonstrations projects ACTION Develop an Advanced Energy Management System Control Center and pursue federal energy reserach grants Ensure electric utility capital expenditure plans to implement cost-effective Smart Grid technologies Evaluate policies to encourage technological and commercial innovation Conclusion and Next Steps Appendix A: Energy Highway Process Appendix B: Summary of rFI Responses 4
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13 27 33 37 38 40 42 48 50 50 5
55 56 57 61 62 63 66 67 68 69 7
72 73 76 77 78 79 81 82 83 85 88 89 91 94 96 6
22 3
38 4
45 56 62 64 74 82 0


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
20 24 43 96 LIST OF FIgureS Figure Energy System: Generation, Transmission, Distribution, Consumers Figure 2 Timeline of Energy Highway Blueprint Impacts Figure 3 Map of Energy Highway Actions Figure 4 Expand and Strengthen the Energy Highway Timeline Figure 5 New York State Transmission System, 230 kv and above, Including the Highest Area of Congestion Figure 6 Recent and Planned Generator Retirements as of September 2012 (Retirements Since 2010)
Figure 7 Accelerate Construction and Repair Timeline Figure 8 Support Clean Energy Timeline Figure 9 Existing and Proposed Wind Capacity (as of September 2012)
Figure 0 Age of New York Generating Facilities Figure Drive Technology Innovation Timeline Figure 2 Map of Transmission Responses Figure 3 Map of Generation Responses LIST OF TAbLeS Table Summary of Energy Highway Task Force Actions Table 2 Summary of Energy Highway Task Force Policy Recommendations Table 3 Environmental Protection Agency (ePA) Actions Applicable to the Electricity Sector Table 4 Summary Matrix of All rfi Responses N.Y. GoverNor Andrew M. Cuomo 2012 State of the State Address K ey to powering our economic growth is expanding our energy infrastructure.


Honorable Andrew M. Cuomo Governor of the State of New York State Capitol Albany, N.Y. 12224
4 eNerGY hiGhwAY tAsk force 5
letter to GoverNor ANdrew m. cuomo Honorable Andrew M. Cuomo Governor of the State of New York State Capitol Albany, N.Y. 12224


==Dear Governor Cuomo:==
==Dear Governor Cuomo:==
We are pleased to present the New York State Energy Highway Blueprint for your consideration.
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.
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.
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.
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 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 protection, job creation, and technology enhancement. The actions we recommend for your consideration will expand and strengthen the energy system, accelerate construction and repair, 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.
From the outset, the Task Force created a transparent process for participation and review by interested parties and the public. All responses to the rfi were posted on the Energy Highway 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 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.
Thanks to all who are contributing to the Energy Highway, we are able to build a better future today with powerful ideas for tomorrow. It has been a privilege to serve on the Energy Highway Task Force and we look forward to continuing to work with you, potential project developers, and others to bring this critical public-private initiative to fruition and ensure that New York stands as a 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.
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
eNergy HIgHwAy TASk FOrCe TOP rOw Gil C. Quiniones, (Co-Chair) President and Chief Executive Ocer, New York Power Authority Joseph Martens, (Co-Chair)
Commissioner, New York State Department of Environmental Conservation bOTTOm rOw Kenneth Adams, President, Chief Executive Ocer and Commissioner, Empire State Development Garry A. Brown, Chairman, New York State Public Service Commission Francis J. Murray, Jr., President and Chief Executive Ocer, New York State Energy Research and Development Authority


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
7 iNtroductioN 6
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.
iNtroductioN Generation Transmission Distribution Consumers ENERGY HIGHWAY Introduction years and decades to come. The power system in New York, comprising the generation, transmission, distribution, and consumer segments illustrated in Figure 1, is a complex network of hundreds of large and small power companies, producing and delivering electric energy along tens of thousands of miles of overhead and underground power lines to millions of residential, commercial, and industrial consumers. The Energy Highway initiative focuses on the generation and transmission systems to strengthen and enhance the foundation of New Yorks energy system.
figure 1 ENERGY HIGHWAY Generation                Transmission                              Distribution  Consumers 6        iNtroductioN                                                              iNtroductioN 7
A modern, ecient, and environmentally sustainable electric power system in New York State is the lifeblood of a vibrant and growing economy, fueling job creation, innovation, and new technologies from mobile devices to electric vehicles. New York State is moving aggressively to ensure that its residents and businesses will have a safe, reliable, aordable, and clean energy supply in the figure 1


We can build a new energy system across our entire State.
We can build a new energy system across our entire State.
N.Y. GoverNor Andrew M. Cuomo 2012 State of the State Address


N.Y. GoverNor Andrew M. Cuomo 2012 State of the State Address
iNtroductioN 0
 
iNtroductioN 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.
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.
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.
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.
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.
Energy Highway The Energy Highway Task Force presents in this Blueprint immediate actions and policy recommendations to modernize the power generation and transmission systems to achieve vital safety, reliability, aordability, and sustainability goals on behalf of all New Yorkers.
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.
In developing the Blueprint, the Energy Highway Task Force notes that New Yorks State Energy Plan is in development, with an expected release in 2013.
0      iNtroductioN                                                                                                                              iNtroductioN     
The Blueprint will provide input to the development of the State Energy Plans policies, strategies, and recommendations.


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.
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ruNNiNG footer 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.
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
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 Executive Summary
: 1. One megawatt (mw) equals 1,000 kilowatts (kw) and is enough power to meet the needs of 800 to 1,000 average homes.
: 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.
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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.
executive summArY executive summArY 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 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.
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.
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 proposals and policy recommendations to advanced technologies suggestions.
and businesses in the decades to come.
This variety of responses, from 85 private developers, investor-owned utilities, "nancial institutions, and other entities, encompassing 130 proposals and con-cepts, provided the Task Force an unprecedented insight into the availability of projects and interest of stakeholders in New York State. The projects proposed 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.
4      executive summArY                                                                          executive summArY 5
The Blueprints actions and recommendations will unify the States efforts to create an energy infrastructure that will serve the States residents and businesses in the decades to come.  


Thirteen speci"c actions involve State agencies and authorities with partners
7 executive summArY 6
* 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.
executive summArY Thirteen speci"c actions involve State agencies and authorities with partners in the private sector and are grouped under the following areas to achieve the objectives set forth by the Task Force to advance Governor Andrew M. Cuomos vision for the Energy Highway.
vision for the Energy Highway.
Expand and Strengthen the Energy Highway Build $1 billion worth of electric transmission projects totaling over 1,000 mw of 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.
* Perform resource characterization2 studies for oshore wind development in the Atlantic Ocean.
Develop Reliability Contingency Plans for potential power plant retirements in cases that could impact the reliability of the system.
* 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.
Support "exibility in contracting for public power authorities, to facilitate public-private partnerships.
* Require utilities to evaluate repowering power plants as a potential solution when plants needed for reliability are scheduled for retirement.
Accelerate Construction and Repair Advance up to $800 million of investments in electric generation, transmission, and distribution to enhance reliability, safety, and storm resilience.
* 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
Advance up to $500 million of investments in natural gas distribution to reduce costs to customers and enhance reliability, safety, and emission reductions.
* 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.
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 renewable energy projects.
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.
Build up to $35 million worth of strategic transmission upgrades to remove a potential impediment to additional renewable energy development in Northern New York.
* Develop Reliability Contingency Plans for potential power plant retirements in cases that could impact the reliability of the system.
Perform resource characterization2 studies for oshore wind development in the Atlantic Ocean.
* Support "exibility in contracting for public power authorities, to facilitate public-private partnerships.                                                          Drive Technology Innovation
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.
* 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.
Require utilities to evaluate repowering power plants as a potential solution when plants needed for reliability are scheduled for retirement.
* 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
Create a new incentive fund for greenhouse gas emissions and particulate matter reductions in the electricity sector; institute mechanisms to mitigate impacts on select aected communities from retirements of fossil-fuel power plants.
* 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
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.
* 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.
Dedicate $10 million to further advance New York as a national center for Smart Grid technology and applications and to lead a statewide eort to house a federal Smart Grid Technology Hub in New York, in partnership with national laboratories and other industry partners; dedicate up to $50 million additional in funding and other resources in the near-term to help support an Advanced Energy Management System Control Center in New York, along with a Smart Energy Utility application program targeted at system operation.
Support Clean Energy
: 2. Resource characterization studies provide more detailed information on the overall power 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.
* 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.
9 executive summArY 8
executive summArY 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.
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.
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.
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:
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.
Support workforce development for the energy industry.
* Provide long-term certainty for renewable energy development in New York beyond 2015.
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.
Advance policies to encourage distributed renewable energy development; continue and build on the NY-Sun initiative.
* Evaluate cost recovery opportunities for oshore wind.
Evaluate cost recovery opportunities for oshore wind.
* Support additional eorts to transition to a cleaner power generation "eet on Long Island.
Support additional eorts to transition to a cleaner power generation "eet on Long Island.
* Support energy eciency and other demand-side measures.
Support energy eciency and other demand-side measures.
* Ensure electric utility capital expenditure plans include cost-eective Smart Grid technologies.
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:
Evaluate policies and regulatory mechanisms, such as the riio (Revenues =
Expediting Implementation The Energy Highway initiative brought together the States principal energy,
Incentives + Innovation + Outputs)3 framework recently adopted in the United Kingdom, to encourage technological and commercial innovation.
* 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.
Expediting Implementation The Energy Highway initiative brought together the States principal energy, environmental, and economic development agencies and authorities to partner in a unique forum to undertake a broad planning eort and chart concrete actions and implementation plans (see Appendix A for details on the Energy Highway process to date). This collaboration allows for expedited implementation of the recommended actions, some through existing processes and others through newly developed or expanded processes.
actions and implementation plans (see Appendix A for details on the
Existing processes can be expedited, where possible, to ensure swift, ecient, and eective implementation of the proposed actions. The Blueprint recommends steps to signi"cantly reduce the time required for development of energy infrastructure, including:
* 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.
Executing a "rst-of-its-kind solicitation of new transmission projects by the Department of Public Service to initiate private sector development to achieve public policy goals.
implementation of the recommended actions, some through existing
Initiating reliability contingency planning years in advance of potential notices of closure by power plants to ensure solutions can be in place to maintain reliability.
* 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.
Accelerating investments in the public and private sector to immediately spur 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
Under Governor Cuomos leadership, State agencies and authorities are poised to immediately begin working with the private sector to pursue the outlined actions to realize the bene"ts for New York.
: 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.
: 3. riio is the United Kingdoms new approach to regulating their electric and natural gas transmission.
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
2 20 executive summArY executive summArY SuPPort cleAN eNergY Conduct a competitive solicitation for renewable resources in New York as part of the States renewable Portfolio Standard initiate transmission upgrades in Northern New York to help facilitate renewable energy development Characterize offshore wind resources and evaluate cost recovery opportunities initiate process for repowering of inefficient power plants on long island and support additional efforts to transition to a cleaner power generation fleet on long island 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 NYSerDA NYPA, NYSerDA NYSerDA liPA DPS Dec, NYSerDA DPS, Private Sector DPS NYPA, liPA, Dec, DoS, ious, Private Sector Private Sector ious, Private Sector DPS, eSD by the end of 2012 by the end of 2012 by the end of 2012 Summer 2013 by the end of 2012 early 2013 awards made summer 2013, projects in service by end of 2014 Ongoing 2014 2019 to 2020 Ongoing, complete as needed Ongoing, open programs for applications by 2014 Drive techNologY iNNovAtioN fund Smart grid demonstration projects Develop an advanced energy Management System Control Center and pursue a federal Smart grid Technology Hub NYSerDA NYSerDA, NYPA DPS NYiSo, academia, federal government, ious, Private Sector early 2013 early 2013 Ongoing Ongoing
                                                                                                                                                                                                                                                                                            $1.5 - $2 billion    l  750 Mw
: 4. Definitions: New York State Department of Public Service (dPs); New York Power Authority (NYPA); Long Island 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 Conservation (dec); New York State Department of State (dos); Empire State Development (esd).
exPAND AND StreNgtheN the eNergY highwAY initiate alternating Current transmission upgrades to increase the capacity to move excess power from upstate to downstate Develop and implement reliability Contingency Plans to prepare for potential large power plant retirements Provide public power entities flexibility in contracting for public-private partnerships DPS DPS NYPA, liPA NYPA, liPA, NYiSo, ious, Private Sector NYPA, NYiSo, ious, Private Sector


require utilities to evaluate repowering as an alternative to power plant retirements when the plant is needed for reliability
by the end of 2012 by the end of 2012 early 2013 in phases from 2015 to 2018 Summer 2016 if needed, additional as identified end of 2013 AccelerAte coNStructioN AND rePAir accelerate investments in electric generation, transmission, and distribution for reliability, safety, and storm resilience accelerate investments in natural gas distribution to reduce costs to consumers and promote reliability, safety, and emission reductions DPS, NYPA DPS ious ious early 2013 by the end of 2012 end of 2017 end of 2017 Table 1 Summary of Energy Highway Task Force Actions ACTION LeAD PubLIC PArTNerS eSTImATeD PubLIC AND PrIvATe INITIATe eSTImATeD COmPLeTION PArTNerS4 INveSTmeNT POTeNTIAL DATe
$1 billion total for multiple projects totaling over 1,000 Mw
$1 to $2 billion totaling approximately 1,200 Mw if needed, additional as identified


establish a Community Support Plan and greenhouse gas emissions reduction Program in the electricity sector
$800 million
$500 million
$675 million for new capacity approaching 270 Mw
$35 million
$2 to $5 million
$1.5 to $2 billion to repower approximately 750 Mw


fund Smart grid demonstrations projects                                                                                                                                                                                                                  $190 million Drive techNologY
$190 million
$60 million Total estimated investment Potential up to $5.7 billion Potential Capacity installed totals as much as 3,200 Mw


iNNovAtioN                                      Develop an advanced energy Management System Control                                                                                                                                                                                                       $60 million Center and pursue federal Smart grid Technology Hub 22    executive summArY                                                                                                                                                                                          executive summArY                  23
2018 2012 2013 2014 2015 2016 2017 23 22 executive summArY executive summArY Develop and implement reliability Contingency Plans to prepare for potential large power plant retirements accelerate investments in electric generation, transmission, and distribution for reliability, safety, and storm resilience fund Smart grid demonstrations projects Conduct a competitive solicitation for renewable energy resources in New York as part of the States renewable Portfolio Standard initiate transmission upgrades in Northern New York to help facilitate renewable energy development Characterize offshore wind resources and evaluate cost recovery opportunities initiate process for repowering of inefficient power plants on long island 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 Develop an advanced energy Management System Control Center and pursue federal Smart grid Technology Hub Provide public power entities flexibility in contracting for public-private partnerships accelerate investments in natural gas distribution to reduce costs to consumers and promote reliability, safety, and emission reductions
$35 million
$190 million
$60 million
$500 million
$800 million
$2 - $5 million
$675 million l 270 Mw ARROw = COMPLETION BEYOND 2018
$1.5 - $2 billion l 750 Mw
$1 - $2 billion l 1,200 Mw
$1 billion l 1,000 Mw initiate alternating Current transmission upgrades to increase the capacity to move excess electric power from upstate to downstate figure 2 Timeline of Energy Highway Blueprint Impacts exPAND AND StreNgtheN the eNergY highwAY AccelerAte coNStructioN AND rePAir SuPPort cleAN eNergY Drive techNologY iNNovAtioN E ST I M AT E D I N V E ST M E N T P OT E N T I A L l P OT E N T I A L CA PAC I T Y I N STA L L E D


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


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.
27 26 26 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.
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.
Euismod vehicula wisi, sed vivamus placerat ut cras purus, bibendum adipiscing a magna duis neque, erat sed at, et inceptos molestie quis in.
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
: euismod, The New York State Energy Highway Blueprint provides an action plan for implementing Governor Andrew M. Cuomos bold proposal for a public-private initiative to rebuild and rejuvenate New York States electric power system to meet the needs of a 21st century economy and society.
The Blueprint was developed by the Energy Highway Task Force, appointed 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 States principal energy, environmental, and economic development ocials, issued a Request for Information (rfi) in April 2012 that elicited responses from 85 private developers, investor-owned utilities, "nancial institutions, and other entities encompassing 130 proposals and concepts. The projects proposed 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.
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
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 Blueprint for the Future 26 ruNNiNG footer bluePriNt for the future
: 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.
: 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.
29 28 bluePriNt for the future bluePriNt for the future State (see Figure 3: Map of Energy Highway Actions, which shows the region(s) tied to each action proposed by the Task Force).
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.
The Energy Highway initiative is closely linked to Governor Cuomos NY Works program, an eort to forge new partnerships with private enterprises to rebuild and modernize New Yorks infrastructure and to leverage the States "nancial and technical resources to generate billions of dollars in private 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.
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:
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.
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.
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.
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 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.
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,
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),
: 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.
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.
: 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
aecting power supplies and the communities where the plants are located.
While the challenges are formidable, this Blueprint demonstrates that they can be met in a manner that advances the States energy, environmental, and economic development goals. In seeking a widespread response to the rfi, the Energy Highway Task Force termed this The Time for Powerful Ideas. Those ideas have now emerged, setting the stage for equally powerful actions.


FIGURE 3 Map of Energy Highway Actions northern new york
31 BLUEPRINT FOR THE FUTURE 30 RUNNING FOOTER northern new york
* Initiate transmission upgrades to help facilitate renewable energy development.
* Initiate transmission upgrades to help facilitate renewable energy development.
central new york
* Initiate Alternating Current transmission upgrades to increase the capacity to move excess power from upstate to downstate.
* Accelerate investments in public and private sector electric generation, transmission, and distribution and private sector natural gas distribution.
downstate
* Initiate Alternating Current transmission upgrades to increase the capacity to move excess power from upstate to downstate.
* Characterize ofshore wind resources and evaluate cost recovery opportunities.
* Initiate process for repowering of inefcient power plants on Long Island and support additional eforts to transition to a cleaner power generation "eet on Long Island.
hudson valley
* 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 NORTHERN NEW YORK retirements when the plant is needed for reliability.                                                                                 central new york
* Utilities to evaluate repowering as an alternative to power plant retirements when the plant is needed for reliability.
* Initiate Alternating Current transmission upgrades to increase the capacity to move excess power from upstate to CENTRAL NEW YORK downstate.
statewide
* Accelerate investments in public and private sector WESTERN NEW YORK electric generation, transmission, and distribution and private sector natural gas distribution.
* Develop Reliability Contingency Plans to prepare for potential large power plant retirements.
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 175: Line 208:
* 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.
30 R U N N I N G F O OT E R                                                                            BLUEPRINT FOR THE FUTURE                      31
WESTERN NEW YORK NORTHERN NEW YORK CENTRAL NEW YORK HUDSON VALLEY DOWNSTATE FIGURE 3 Map of Energy Highway Actions


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:
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 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.
Euismod vehicula wisi, sed vivamus placerat ut cras purus, bibendum adipiscing a magna duis neque, erat sed at, et inceptos molestie quis in.
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
: euismod, The Energy Highway Task Force has identi"ed four main areas of focus in this Blueprint that address the objectives and goals identi"ed by Governor Cuomo and in the rfi:
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.
A Four-Part Strategy 33 32 ruNNiNG footer A four-PArt strAteGY
: 8. Actions recommended by the Task Force are subject to all applicable regulatory and statutory requirements.
: 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
expand and Strengthen the energy Highway accelerate Construction and repair Support Clean energy Drive Technology innovation


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.
35 34 ruNNiNG footer ruNNiNG footer 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.
37 DRA F T CO NF I DE NT I A L 36 ruNNiNG footer exPANd ANd streNGtheN the eNerGY hiGhwAY 36 DRA F T CO NF I DE NT I A L 36 36 36 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.
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:
Euismod vehicula wisi, sed vivamus placerat ut cras purus, bibendum adipiscing a magna duis neque, erat sed at, et inceptos molestie quis in.
ante ipsum                  enhance reliability; increase system operations flexibility; address major
A turpis, nonummy vitae
* 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.
: commodo, ante ipsum eget posuere, augue nibh, Expand and Strengthen The Energy Highway eSTImATeD INveSTmeNT POTeNTIAL up to $2 billion POTeNTIAL CAPACITy INSTALLeD up to 2,200 Mw of transmission and generation capacity by 2018 exPeCTeD beNeFITS enhance reliability; increase system operations flexibility; address major planning uncertainties; reduce transmission congestion and improve efficiency New York has a reliable electric system, but it is a system consisting of transmission lines and power plants that are aging. Some of these facilities also have uncertain futures. The Energy Highway initiative leverages ongoing replacement in-kind of aging infrastructure and identi"es speci"c areas to expand transmission capacity to move excess power from upstate power producers to downstate, while providing signi"cant reliability, economic, and environmental bene"ts. The following actions and recommendations improve the eciency of the Energy Highway system and bene"t New York residents and businesses:
augue nibh,                  efficiency
Expand transmission to carry excess power from upstate: initiate Alternating Current (Ac) electric transmission upgrades to increase the capacity to move excess electric power from upstate to downstate by over 1,000 mw.
* Plan for possible power plant retirements: develop and implement Reliability Contingency Plans to prepare for potential large power plant retirements.
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 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.
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
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


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
39 38 exPANd ANd streNGtheN the eNerGY hiGhwAY exPANd ANd streNGtheN the eNerGY hiGhwAY investments, Ac investments provide the additional bene"t of contributing to a system that is more robust and "exible with increased reliability bene"ts, thereby increasing the area within which generation facilities can be placed to respond to future system needs.
                                                                                                                                                                                                                                                                              $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
The reduction of in-state transmission constraints and development of additional transmission capacity is expected to reduce air emissions in the New York City area, support the development of upstate renewable energy projects, and lower wholesale energy prices for downstate energy consumers.
                                                                                                                                                                $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:
Further, upgrades should provide economic development bene"ts to upstate by enabling excess energy from upstate power plants to reach downstate markets, improving the "nancial viability of existing upstate power producers, and allowing existing and new wind farms and other renewable sources in that region to access higher-priced energy markets.
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.
rFI reSPONSeS The Task Force received three proposals in support of Ac transmission upgrades, accounting for 20 individual projects and demonstrating that the private sector is positioned to support the proposed action:
* Boundless Energy, llc
Boundless Energy, llc CityGreen Transmission, Inc.
* CityGreen Transmission, Inc.
New York Transmission Company (Transco)
York. Together, New York City, Long Island, and Westchester County account                                 Further, upgrades should provide economic development bene"ts to upstate
Additionally, ls Power Transmission submitted suggestions for facilitating Ac transmission development.
* 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.
figure 4 Expand and Strengthen the Energy Highway Timeline eort guided by public policy. In addition to responding to each individual situation through the NYiso processes, New York requires a comprehensive view of how to best position the electric system to bene"t ratepayers over the long-term.
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.
Expand transmission to carry excess power from upstate to downstate New York States electric transmission system faces a longstanding problem of congestion at critical points on the pathways linking upstate and downstate New York. Together, New York City, Long Island, and Westchester County account for more than half of the demand for electricity in the State and this demand is increasing; however, in times of peak demand and high prices, lower-cost and/or cleaner power available from upstate cannot reach these densely populated areas because of the transmission bottlenecks. Congestion can have adverse 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.
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.
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
While congestion can also be reduced through generation or dc transmission 2018 2012 2013 2014 2015 2016 2017 Develop and implement reliability Contingency Plans to prepare for potential large power plant retirements Provide public power entities flexibility in contracting for public-private partnerships
$1 - $2 billion l 1,200 Mw
$1 billion l 1,000 Mw initiate alternating Current transmission upgrades to increase the capacity to move excess electric power from upstate to downstate exPAND AND StreNgtheN the eNergY highwAY E ST I M AT E D I N V E ST M E N T P OT E N TIAL l POTENTIAL CAPACITY INSTALLED


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
4 40 exPANd ANd streNGtheN the eNerGY hiGhwAY exPANd ANd streNGtheN the eNerGY hiGhwAY and allocation. Following these submissions, dPs will initiate a pre-"ling, multi-agency review, and evaluation process leading to establishing deadlines for applications, possibly phased according to which congested interfaces the proposed transmission projects would address. After complete applications for certi"cates have been received, a coordinated hearing and decision phase of the certi"cation process will commence. The process will include an evaluation of the economic bene"ts and environmental impacts of each project. It is expected that, subject to a determination granting a certi"cate, projects meeting the objectives could begin construction in 2014.
    $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:
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 ACTION Initiate Alternating Current transmission upgrades to increase the capacity to move excess power from upstate to downstate 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
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.
$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 Central New York and the lower Hudson Valley and New York City, thus relieving existing bottlenecks. These projects would also be expected to enhance system reliability into the future. Speci"cally, the dPs should call for projects that relieve congestion, including those bene"ting the following transmission corridor consisting of: Central East-New Scotland-Leeds-Pleasant Valley between the Mohawk Valley Region, the Capital Region, and the Lower Hudson Valley (see Figure 5: New York State Transmission System, 230 kv and Above, Including the Highest Area of Congestion).
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.
Based on the proposals received in response to the rfi, analysis conducted by the Task Force in cooperation with the NYiso, and review of published stud-ies such as the New York State Transmission Assessment and Reliability Study (stArs) issued in April 2012, the Task Force estimates that approximately 1,000 mw of cost-eective opportunities exist to upgrade the Ac transmission system.9 The dPs should call for each developer of a proposed project that meets these objectives to submit a letter of intent to the Public Service Commission (Psc) providing a detailed project description, including cost estimates, a target date for "ling its Article vii10 application and its approach to cost recovery Highest Area of Congestion:
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
Central East New Scotland Leeds Pleasant Valley New York State Transmission System 230 kV and above figure 5 New York State Transmission System, 230 kV and Above, Including the Highest Area of Congestion11
: 11. Information adapted from the NYisos Power Trends 2012: State of the Grid, page 31.
: 9. Transmission security and resource assessments were performed by Nexant and PowerGEM
: 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.
: 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.
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
Note: Projects that may relieve congestion in the highlighted area may not necessarily be physically located within this area.


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


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

Latest revision as of 20:20, 11 January 2025

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

RUNNING FOOTER 1

DRA F T CO NF I DE NT I A L 1

DRA F T CO NF I DE NT I A L Issued 2012 by the New York Energy Highway Task Force N.Y. GOVERNOR Andrew M. Cuomo New York Energy Highway Blueprint NYEnergyHighway.com United States Nuclear Regulatory Commission Official Hearing Exhibit In the Matter of:

Entergy Nuclear Operations, Inc.

(Indian Point Nuclear Generating Units 2 and 3)

ASLBP #: 07-858-03-LR-BD01 Docket #: 05000247 l 05000286 Exhibit #:

Identified:

Admitted:

Withdrawn:

Rejected:

Stricken:

Other:

NYS00448A-00-BD01 11/14/2012 11/14/2012 Originally Identified as BRD000007 NYS000448A Submitted: November 9, 2012

ENERGY HIGHWAY Generation Transmission Distribution Consumers

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coNteNts coNteNts Energy Highway Task Force Letter to Governor Andrew M. Cuomo Introduction Executive Summary Blueprint for the Future A Four-Part Strategy Expand and Strengthen the Energy Highway Expand transmission to carry excess power from upstate to downstate ACTION Initiate Alternating Current transmission upgrades to increase the capacity to move excess power from upstate to downstate Plan for possible power plant retirements ACTION Develop and implement Reliability Contingency Plans for potential large power plant retirements Support public-private partnerships ACTION Provide public power authorities flexibility in contracting Support workforce development for the energy industry Accelerate Construction and Repair ACTION Accelerate investments in electric generation, transmission, and distribution to strengthen reliability, safety, and storm resilience ACTION Accelerate investments in natural gas distribution to reduce cost to customers and promote reliability, safety, and emission reductions Support Clean Energy Encourage the development of renewable generation ACTION Conduct a competitive solicitation for new renewable energy resources as part of the New York State Renewable Portfolio Standard Provide long-term certainty for renewable energy development beyond 2015 Facilitate further development of upstate renewable energy projects ACTION Initiate transmission upgrades in Northern New York to help facilitate renewable energy development Advance policies to encourage distributed renewable energy development; continue and build on the NY-Sun initiative Advance offshore wind development in New York ACTION Characterize offshore wind resources and evaluate cost recovery opportunities Support repowering of existing power plants to improve efficiency and protect the environment ACTION Initiate process for repowering of inefficient power plants on Long Island and Contents support additional efforts to transition to a cleaner power generation fleet on Long Island ACTION Require utilities to evaluate repowering as an alternative solution for power plant retirements where the power plant is expected to be needed for reliability ACTION Establish a Community Support Plan and Greenhouse Gas Emissions Reduction Program in the electricity sector Support energy efficiency and other demand-side measures Drive Technology Innovation Advance Smart Grid in New York ACTION Fund Smart grid demonstrations projects ACTION Develop an Advanced Energy Management System Control Center and pursue federal energy reserach grants Ensure electric utility capital expenditure plans to implement cost-effective Smart Grid technologies Evaluate policies to encourage technological and commercial innovation Conclusion and Next Steps Appendix A: Energy Highway Process Appendix B: Summary of rFI Responses 4

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72 73 76 77 78 79 81 82 83 85 88 89 91 94 96 6

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20 24 43 96 LIST OF FIgureS Figure Energy System: Generation, Transmission, Distribution, Consumers Figure 2 Timeline of Energy Highway Blueprint Impacts Figure 3 Map of Energy Highway Actions Figure 4 Expand and Strengthen the Energy Highway Timeline Figure 5 New York State Transmission System, 230 kv and above, Including the Highest Area of Congestion Figure 6 Recent and Planned Generator Retirements as of September 2012 (Retirements Since 2010)

Figure 7 Accelerate Construction and Repair Timeline Figure 8 Support Clean Energy Timeline Figure 9 Existing and Proposed Wind Capacity (as of September 2012)

Figure 0 Age of New York Generating Facilities Figure Drive Technology Innovation Timeline Figure 2 Map of Transmission Responses Figure 3 Map of Generation Responses LIST OF TAbLeS Table Summary of Energy Highway Task Force Actions Table 2 Summary of Energy Highway Task Force Policy Recommendations Table 3 Environmental Protection Agency (ePA) Actions Applicable to the Electricity Sector Table 4 Summary Matrix of All rfi Responses N.Y. GoverNor Andrew M. Cuomo 2012 State of the State Address K ey to powering our economic growth is expanding our energy infrastructure.

4 eNerGY hiGhwAY tAsk force 5

letter to GoverNor ANdrew m. cuomo 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 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 protection, job creation, and technology enhancement. The actions we recommend for your consideration will expand and strengthen the energy system, accelerate construction and repair, support clean energy, and drive technology innovation.

From the outset, the Task Force created a transparent process for participation and review by interested parties and the public. All responses to the rfi were posted on the Energy Highway 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 670 attendees.

Thanks to all who are contributing to the Energy Highway, we are able to build a better future today with powerful ideas for tomorrow. It has been a privilege to serve on the Energy Highway Task Force and we look forward to continuing to work with you, potential project developers, and others to bring this critical public-private initiative to fruition and ensure that New York stands as a leader in energy development and reliability.

Gil C. Quiniones Joseph Martens Kenneth Adams Garry A. Brown Francis J. Murray, Jr.

eNergy HIgHwAy TASk FOrCe TOP rOw Gil C. Quiniones, (Co-Chair) President and Chief Executive Ocer, New York Power Authority Joseph Martens, (Co-Chair)

Commissioner, New York State Department of Environmental Conservation bOTTOm rOw Kenneth Adams, President, Chief Executive Ocer and Commissioner, Empire State Development Garry A. Brown, Chairman, New York State Public Service Commission Francis J. Murray, Jr., President and Chief Executive Ocer, New York State Energy Research and Development Authority

7 iNtroductioN 6

iNtroductioN Generation Transmission Distribution Consumers ENERGY HIGHWAY Introduction years and decades to come. The power system in New York, comprising the generation, transmission, distribution, and consumer segments illustrated in Figure 1, is a complex network of hundreds of large and small power companies, producing and delivering electric energy along tens of thousands of miles of overhead and underground power lines to millions of residential, commercial, and industrial consumers. The Energy Highway initiative focuses on the generation and transmission systems to strengthen and enhance the foundation of New Yorks energy system.

A modern, ecient, and environmentally sustainable electric power system in New York State is the lifeblood of a vibrant and growing economy, fueling job creation, innovation, and new technologies from mobile devices to electric vehicles. New York State is moving aggressively to ensure that its residents and businesses will have a safe, reliable, aordable, and clean energy supply in the figure 1

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

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

iNtroductioN 0

iNtroductioN 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 policy recommendations to modernize the power generation and transmission systems to achieve vital safety, reliability, aordability, and sustainability goals on behalf of all New Yorkers.

In developing the Blueprint, the Energy Highway Task Force notes that New Yorks State Energy Plan is in development, with an expected release in 2013.

The Blueprint will provide input to the development of the State Energy Plans policies, strategies, and recommendations.

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ruNNiNG footer 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 Executive Summary

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

5 4

executive summArY executive summArY 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 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.

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 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-cepts, provided the Task Force an unprecedented insight into the availability of projects and interest of stakeholders in New York State. The projects proposed 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.

The Blueprints actions and recommendations will unify the States efforts to create an energy infrastructure that will serve the States residents and businesses in the decades to come.

7 executive summArY 6

executive summArY Thirteen speci"c actions involve State agencies and authorities with partners in the private sector and are grouped under the following areas to achieve the objectives set forth by the Task Force to advance Governor Andrew M. Cuomos vision for the Energy Highway.

Expand and Strengthen the Energy Highway Build $1 billion worth of electric transmission projects totaling over 1,000 mw of 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.

Accelerate Construction and Repair Advance up to $800 million of investments in electric generation, transmission, and distribution to enhance reliability, safety, and storm resilience.

Advance up to $500 million of investments in natural gas distribution to reduce costs to customers and enhance reliability, safety, and emission reductions.

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 renewable energy projects.

Build up to $35 million worth of strategic transmission upgrades to remove a potential impediment to additional renewable energy development in Northern New York.

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 reductions in the electricity sector; institute mechanisms to mitigate impacts on select aected communities from retirements of fossil-fuel power plants.

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 Smart Grid technology and applications and to lead a statewide eort to house a federal Smart Grid Technology Hub in New York, in partnership with national laboratories and other industry partners; dedicate up to $50 million additional in funding and other resources in the near-term to help support an Advanced Energy Management System Control Center in New York, along with a Smart Energy Utility application program targeted at system operation.

2. Resource characterization studies provide more detailed information on the overall power 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.

9 executive summArY 8

executive summArY 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 =

Incentives + Innovation + Outputs)3 framework recently adopted in the United Kingdom, to encourage technological and commercial innovation.

Expediting Implementation The Energy Highway initiative brought together the States principal energy, environmental, and economic development agencies and authorities to partner in a unique forum to undertake a broad planning eort and chart concrete actions and implementation plans (see Appendix A for details on the Energy Highway process to date). This collaboration allows for expedited implementation of the recommended actions, some through existing processes and others through newly developed or expanded processes.

Existing processes can be expedited, where possible, to ensure swift, ecient, and eective implementation of the proposed actions. The Blueprint recommends steps to signi"cantly reduce the time required for development of energy infrastructure, including:

Executing a "rst-of-its-kind solicitation of new transmission projects by the Department of Public Service to initiate private sector development to achieve public policy goals.

Initiating reliability contingency planning years in advance of potential notices of closure by power plants to ensure solutions can be in place to maintain reliability.

Accelerating investments in the public and private sector to immediately spur 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 outlined actions to realize the bene"ts for New York.

3. riio is the United Kingdoms new approach to regulating their electric and natural gas transmission.

2 20 executive summArY executive summArY SuPPort cleAN eNergY Conduct a competitive solicitation for renewable resources in New York as part of the States renewable Portfolio Standard initiate transmission upgrades in Northern New York to help facilitate renewable energy development Characterize offshore wind resources and evaluate cost recovery opportunities initiate process for repowering of inefficient power plants on long island and support additional efforts to transition to a cleaner power generation fleet on long island 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 NYSerDA NYPA, NYSerDA NYSerDA liPA DPS Dec, NYSerDA DPS, Private Sector DPS NYPA, liPA, Dec, DoS, ious, Private Sector Private Sector ious, Private Sector DPS, eSD by the end of 2012 by the end of 2012 by the end of 2012 Summer 2013 by the end of 2012 early 2013 awards made summer 2013, projects in service by end of 2014 Ongoing 2014 2019 to 2020 Ongoing, complete as needed Ongoing, open programs for applications by 2014 Drive techNologY iNNovAtioN fund Smart grid demonstration projects Develop an advanced energy Management System Control Center and pursue a federal Smart grid Technology Hub NYSerDA NYSerDA, NYPA DPS NYiSo, academia, federal government, ious, Private Sector early 2013 early 2013 Ongoing Ongoing

4. Definitions: New York State Department of Public Service (dPs); New York Power Authority (NYPA); Long Island 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 Conservation (dec); New York State Department of State (dos); Empire State Development (esd).

exPAND AND StreNgtheN the eNergY highwAY initiate alternating Current transmission upgrades to increase the capacity to move excess power from upstate to downstate Develop and implement reliability Contingency Plans to prepare for potential large power plant retirements Provide public power entities flexibility in contracting for public-private partnerships DPS DPS NYPA, liPA NYPA, liPA, NYiSo, ious, Private Sector NYPA, NYiSo, ious, Private Sector

by the end of 2012 by the end of 2012 early 2013 in phases from 2015 to 2018 Summer 2016 if needed, additional as identified end of 2013 AccelerAte coNStructioN AND rePAir accelerate investments in electric generation, transmission, and distribution for reliability, safety, and storm resilience accelerate investments in natural gas distribution to reduce costs to consumers and promote reliability, safety, and emission reductions DPS, NYPA DPS ious ious early 2013 by the end of 2012 end of 2017 end of 2017 Table 1 Summary of Energy Highway Task Force Actions ACTION LeAD PubLIC PArTNerS eSTImATeD PubLIC AND PrIvATe INITIATe eSTImATeD COmPLeTION PArTNerS4 INveSTmeNT POTeNTIAL DATe

$1 billion total for multiple projects totaling over 1,000 Mw

$1 to $2 billion totaling approximately 1,200 Mw if needed, additional as identified

$800 million

$500 million

$675 million for new capacity approaching 270 Mw

$35 million

$2 to $5 million

$1.5 to $2 billion to repower approximately 750 Mw

$190 million

$60 million Total estimated investment Potential up to $5.7 billion Potential Capacity installed totals as much as 3,200 Mw

2018 2012 2013 2014 2015 2016 2017 23 22 executive summArY executive summArY Develop and implement reliability Contingency Plans to prepare for potential large power plant retirements accelerate investments in electric generation, transmission, and distribution for reliability, safety, and storm resilience fund Smart grid demonstrations projects Conduct a competitive solicitation for renewable energy resources in New York as part of the States renewable Portfolio Standard initiate transmission upgrades in Northern New York to help facilitate renewable energy development Characterize offshore wind resources and evaluate cost recovery opportunities initiate process for repowering of inefficient power plants on long island 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 Develop an advanced energy Management System Control Center and pursue federal Smart grid Technology Hub Provide public power entities flexibility in contracting for public-private partnerships accelerate investments in natural gas distribution to reduce costs to consumers and promote reliability, safety, and emission reductions

$35 million

$190 million

$60 million

$500 million

$800 million

$2 - $5 million

$675 million l 270 Mw ARROw = COMPLETION BEYOND 2018

$1.5 - $2 billion l 750 Mw

$1 - $2 billion l 1,200 Mw

$1 billion l 1,000 Mw initiate alternating Current transmission upgrades to increase the capacity to move excess electric power from upstate to downstate figure 2 Timeline of Energy Highway Blueprint Impacts exPAND AND StreNgtheN the eNergY highwAY AccelerAte coNStructioN AND rePAir SuPPort cleAN eNergY Drive techNologY iNNovAtioN E ST I M AT E D I N V E ST M E N T P OT E N T I A L l P OT E N T I A L CA PAC I T Y I N STA L L E D

25 24 executive summArY ruNNiNG footer 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 beyond 2015 advance policies to encourage distributed renewable energy development; continue and build on the NY-Sun initiative evaluate cost recovery opportunities for offshore wind Support additional efforts to transition to a cleaner power generation fleet on long island Support energy efficiency and other demand-side measures NYSerDA, DPS NYSerDA, DPS NYSerDA, DPS liPA all Drive techNologY iNNovAtioN ensure electric utility capital expenditure plans include cost-effective Smart grid technologies evaluate policies and regulatory mechanisms, such as the riio (revenues =

incentives + innovation + Outputs) framework recently adopted in the united Kingdom, to encourage technological and commercial innovation DPS DPS, NYSerDA Table 2 Summary of Energy Highway Task Force Policy Recommendations

27 26 26 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.

Euismod vehicula wisi, sed vivamus placerat ut cras purus, bibendum adipiscing a magna duis neque, erat sed at, et inceptos molestie quis in.

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

euismod, The New York State Energy Highway Blueprint provides an action plan for implementing Governor Andrew M. Cuomos bold proposal for a public-private initiative to rebuild and rejuvenate New York States electric power system to meet the needs of a 21st century economy and society.

The Blueprint was developed by the Energy Highway Task Force, appointed 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 States principal energy, environmental, and economic development ocials, issued a Request for Information (rfi) in April 2012 that elicited responses from 85 private developers, investor-owned utilities, "nancial institutions, and other entities encompassing 130 proposals and concepts. The projects proposed 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 Blueprint for the Future 26 ruNNiNG footer bluePriNt for the future

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.

29 28 bluePriNt for the future bluePriNt for the future State (see Figure 3: Map of Energy Highway Actions, which shows the region(s) tied to each action proposed by the Task Force).

The Energy Highway initiative is closely linked to Governor Cuomos NY Works program, an eort to forge new partnerships with private enterprises to rebuild and modernize New Yorks infrastructure and to leverage the States "nancial and technical resources to generate billions of dollars in private 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.

aecting power supplies and the communities where the plants are located.

While the challenges are formidable, this Blueprint demonstrates that they can be met in a manner that advances the States energy, environmental, and economic development goals. In seeking a widespread response to the rfi, the Energy Highway Task Force termed this The Time for Powerful Ideas. Those ideas have now emerged, setting the stage for equally powerful actions.

31 BLUEPRINT FOR THE FUTURE 30 RUNNING FOOTER northern new york

  • Initiate transmission upgrades to help facilitate renewable energy development.

central new york

  • Initiate Alternating Current transmission upgrades to increase the capacity to move excess power from upstate to downstate.
  • Accelerate investments in public and private sector electric generation, transmission, and distribution and private sector natural gas distribution.

downstate

  • Initiate Alternating Current transmission upgrades to increase the capacity to move excess power from upstate to downstate.
  • Characterize ofshore wind resources and evaluate cost recovery opportunities.
  • Initiate process for repowering of inefcient power plants on Long Island and support additional eforts to transition to a cleaner power generation "eet on Long Island.

hudson valley

  • 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

  • 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.

statewide

  • Develop Reliability Contingency Plans to prepare for potential large power plant retirements.
  • 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.

WESTERN NEW YORK NORTHERN NEW YORK CENTRAL NEW YORK HUDSON VALLEY DOWNSTATE FIGURE 3 Map of Energy Highway Actions

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.

Euismod vehicula wisi, sed vivamus placerat ut cras purus, bibendum adipiscing a magna duis neque, erat sed at, et inceptos molestie quis in.

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

euismod, The Energy Highway Task Force has identi"ed four main areas of focus in this Blueprint that address the objectives and goals identi"ed by Governor Cuomo and in the rfi:

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.

A Four-Part Strategy 33 32 ruNNiNG footer A four-PArt strAteGY

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

expand and Strengthen the energy Highway accelerate Construction and repair Support Clean energy Drive Technology innovation

35 34 ruNNiNG footer ruNNiNG footer 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.

37 DRA F T CO NF I DE NT I A L 36 ruNNiNG footer exPANd ANd streNGtheN the eNerGY hiGhwAY 36 DRA F T CO NF I DE NT I A L 36 36 36 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.

Euismod vehicula wisi, sed vivamus placerat ut cras purus, bibendum adipiscing a magna duis neque, erat sed at, et inceptos molestie quis in.

A turpis, nonummy vitae

commodo, ante ipsum eget posuere, augue nibh, Expand and Strengthen The Energy Highway eSTImATeD INveSTmeNT POTeNTIAL up to $2 billion POTeNTIAL CAPACITy INSTALLeD up to 2,200 Mw of transmission and generation capacity by 2018 exPeCTeD beNeFITS enhance reliability; increase system operations flexibility; address major planning uncertainties; reduce transmission congestion and improve efficiency New York has a reliable electric system, but it is a system consisting of transmission lines and power plants that are aging. Some of these facilities also have uncertain futures. The Energy Highway initiative leverages ongoing replacement in-kind of aging infrastructure and identi"es speci"c areas to expand transmission capacity to move excess power from upstate power producers to downstate, while providing signi"cant reliability, economic, and environmental bene"ts. The following actions and recommendations improve the eciency of the Energy Highway system and bene"t New York residents and businesses:

Expand transmission to carry excess power from upstate: initiate Alternating Current (Ac) electric transmission upgrades to increase the capacity to move excess electric power from upstate to downstate by over 1,000 mw.

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

39 38 exPANd ANd streNGtheN the eNerGY hiGhwAY exPANd ANd streNGtheN the eNerGY hiGhwAY investments, Ac investments provide the additional bene"t of contributing to a system that is more robust and "exible with increased reliability bene"ts, thereby increasing the area within which generation facilities can be placed to respond to future system needs.

The reduction of in-state transmission constraints and development of additional transmission capacity is expected to reduce air emissions in the New York City area, support the development of upstate renewable energy projects, and lower wholesale energy prices for downstate energy consumers.

Further, upgrades should provide economic development bene"ts to upstate by enabling excess energy from upstate power plants to reach downstate markets, improving the "nancial viability of existing upstate power producers, and allowing existing and new wind farms and other renewable sources in that region to access higher-priced energy markets.

rFI reSPONSeS The Task Force received three proposals in support of Ac transmission upgrades, accounting for 20 individual projects and demonstrating that the private sector is positioned to support the proposed action:

Boundless Energy, llc CityGreen Transmission, Inc.

New York Transmission Company (Transco)

Additionally, ls Power Transmission submitted suggestions for facilitating Ac transmission development.

figure 4 Expand and Strengthen the Energy Highway Timeline eort guided by public policy. In addition to responding to each individual situation through the NYiso processes, New York requires a comprehensive view of how to best position the electric system to bene"t ratepayers over the long-term.

Expand transmission to carry excess power from upstate to downstate New York States electric transmission system faces a longstanding problem of congestion at critical points on the pathways linking upstate and downstate New York. Together, New York City, Long Island, and Westchester County account for more than half of the demand for electricity in the State and this demand is increasing; however, in times of peak demand and high prices, lower-cost and/or cleaner power available from upstate cannot reach these densely populated areas because of the transmission bottlenecks. Congestion can have adverse 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 2018 2012 2013 2014 2015 2016 2017 Develop and implement reliability Contingency Plans to prepare for potential large power plant retirements Provide public power entities flexibility in contracting for public-private partnerships

$1 - $2 billion l 1,200 Mw

$1 billion l 1,000 Mw initiate alternating Current transmission upgrades to increase the capacity to move excess electric power from upstate to downstate exPAND AND StreNgtheN the eNergY highwAY E ST I M AT E D I N V E ST M E N T P OT E N TIAL l POTENTIAL CAPACITY INSTALLED

4 40 exPANd ANd streNGtheN the eNerGY hiGhwAY exPANd ANd streNGtheN the eNerGY hiGhwAY and allocation. Following these submissions, dPs will initiate a pre-"ling, multi-agency review, and evaluation process leading to establishing deadlines for applications, possibly phased according to which congested interfaces the proposed transmission projects would address. After complete applications for certi"cates have been received, a coordinated hearing and decision phase of the certi"cation process will commence. The process will include an evaluation of the economic bene"ts and environmental impacts of each project. It is expected that, subject to a determination granting a certi"cate, projects meeting the objectives could begin construction in 2014.

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 ACTION Initiate Alternating Current transmission upgrades to increase the capacity to move excess power from upstate to downstate 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 Central New York and the lower Hudson Valley and New York City, thus relieving existing bottlenecks. These projects would also be expected to enhance system reliability into the future. Speci"cally, the dPs should call for projects that relieve congestion, including those bene"ting the following transmission corridor consisting of: Central East-New Scotland-Leeds-Pleasant Valley between the Mohawk Valley Region, the Capital Region, and the Lower Hudson Valley (see Figure 5: New York State Transmission System, 230 kv and Above, Including the Highest Area of Congestion).

Based on the proposals received in response to the rfi, analysis conducted by the Task Force in cooperation with the NYiso, and review of published stud-ies such as the New York State Transmission Assessment and Reliability Study (stArs) issued in April 2012, the Task Force estimates that approximately 1,000 mw of cost-eective opportunities exist to upgrade the Ac transmission system.9 The dPs should call for each developer of a proposed project that meets these objectives to submit a letter of intent to the Public Service Commission (Psc) providing a detailed project description, including cost estimates, a target date for "ling its Article vii10 application and its approach to cost recovery Highest Area of Congestion:

Central East New Scotland Leeds Pleasant Valley New York State Transmission System 230 kV and above figure 5 New York State Transmission System, 230 kV and Above, Including the Highest Area of Congestion11

11. Information adapted from the NYisos Power Trends 2012: State of the Grid, page 31.
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.

Note: Projects that may relieve congestion in the highlighted area may not necessarily be physically located within this area.

42 exPANd ANd streNGtheN the eNerGY hiGhwAY 43 exPANd ANd streNGtheN the eNerGY hiGhwAY 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 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 nitrogen oxide (Nox) and particulate matter emissions in the downstate region.

The reduction of those emissions are particularly important because the downstate region is designated nonattainment12 for the federal air quality stan-dard for ozone, and Nox emissions contribute to those elevated ozone levels.

Plan for possible power plant retirements 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 and pending environmental regulations (see Table 3: Environmental Protection Agency (ePA) Actions Applicable to the Electricity Sector) coupled with low natural gas prices could lead to accelerated retirements of some of these older facilities.

The potential retirement of power plants creates uncertainties for the future of the States power supply. The Energy Highway Task Force recommends action to address two critical aspects of this uncertainty.

The proposed closure of power plants that are required to maintain system reliability can potentially impose additional costs on customers when the closing plant must be kept online at above market prices.

Either by virtue of plant size, location, or uncertainties regarding the timing of potential retirements, the electricity market may not be in a position to respond adequately to the shutdown of certain power plants once retirement is announcedas is the potential case with the Indian Point Energy Center, a 2,066 mw nuclear power plant located in the lower Hudson Valley.14 These realities justify enhancements to the current process for managing power plant retirements.

In most cases to date, the market has responded adequately to the retirement of plants by providing any needed capacity. Every two years the NYiso, the entity responsible for overseeing operations of the transmission system and CATegOrIeS ePA ACTION ObjeCTIveS STATuS OF ACTION

12. Areas that do not meet the federal Environmental Protection Agencys (ePA) health-based criteria for permissible levels of air pollutants are designed nonattainment areas.
13. See Figure 10.
14. The Task Force makes no assumption as to the probability of a closure of the Indian Point Energy Center, and makes no determination of future events in this regard. This process is intended to provide a solution 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.

Table 3 Environmental Protection Agency (ePA) Actions Applicable to the Electricity Sector15 CrITerIA POLLuTANTS Cross State air Pollution rule New Particulate Matter National ambient air Quality Standards New Sulfur Dioxide National ambient air Quality Standard New Nitrogen Dioxide National ambient air Quality Standard New Ozone National ambient air Quality Standard Nitrogen Oxides reasonably available Control Technology best available retrofit Technology Court vacated Cross State air Pollution rule on august 21, 2012, directed ePA to enforce current rules until it develops a substitute final rule required by December 14, 2012 Promulgated June 2010 Promulgated february 2010 Promulgated March 12, 2008 Promulgated June 2012; requires that sources meet new limits by July 1, 2014 Promulgated april 2012; requires that sources comply with limits by January 1, 2014 reduce sulfur dioxide and nitrogen oxide emissions from fossil fuel power plants in the eastern u.S.

evaluate tightening existing fine particulate standard More stringent sulfur dioxide emissions standards More stringent nitrogen dioxide emissions standards More stringent ozone emissions standards Maintain this level of control for both particulate matter and ozone, and to assist with attainment of both new ambient air quality standards required under the federal regional haze provisions of the Clean air act merCury AND AIr TOxICS STANDArDS Maximum available Control Technology for Mercury and other pollutants Promulgated february 2012 More stringent mercury emission standards for coal-fired power plants, and a range of other hazardous air pollutants emitted by coal-and oil-fired power plants wASTe AND wATer Coal Combustion Waste Wastewater Discharge regulations Power Plant Cooling Water intake Structures rule expected 2013 expected april 2014 expected June 2013 rule on disposal of coal combustion waste, phasing out existing surface storage methods More stringent regulation of wastewater discharges from coal, oil, and gas powered units.

More stringent regulation on cooling water intake structures at existing facilities in order to limit harm to fish populations greeNHOuSe gASeS greenhouse gas reporting rules for New Sectors Tailoring rule New Source Performance Standards Performance Standards for existing Plants Promulgated November and December 2010 Promulgated June 3, 2010 expected 2013 unknown Oil and gas facilities must track greenhouse gas (ghg) emissions as part of ePAs ghg report Program raised threshold for best available Control Technology for power plants emitting large amounts of carbon dioxide More stringent ghg emission standards for new and modified power plants ghg emission standards for existing power plants

exPAND AND StReNGtheN the eNeRGY hIGhWAY exPAND AND StReNGtheN the eNeRGY hIGhWAY energy markets in New York, conducts a Reliability Needs Assessment. This assessment builds on the utilities individual local transmission system plans and results in a Comprehensive Reliability Plan that relies "rst on market-based solutions, but also contains regulated avenues to provide solutions with rate recovery if the market solutions do not get implemented in time. The NYISO also examines scenarios that could respond to needs, such as those created by potential retirements of large coal and nuclear plants, but does not solicit solutions for such contingencies.

New York has a regulatory process for managing power plant retirements, once the retirement is formally announced, to ensure that system reliability is maintained. The State currently requires a power plant owner to provide six months notice to system operators of its plans to temporarily cease operations (also referred to as mothballing) or to completely shut down and retire.16 Both the NYISO and the utility that owns the transmission system surrounding the retiring power plant evaluate whether the pending loss of capacity would result in adverse reliability impacts. Under the existing process, if negative impacts are identi"ed, the local transmission owner proposes investments in its transmission and/or distribution systems to solve the potential problem. In cases where reliability is at risk from the pending retirement, the power plant and utility may negotiate a Reliability Support Services contract, at above-market rates, to keep the power plant operating until the alternate solution is implemented. This contract provides the power plant owner compensation for a limited time to ensure reliability. Though only one instance to date has required a Reliability Support Services contract, executed in August 2012, this situation may arise again in the future, putting consumers at risk for additional costs.

The Energy Highway Task Force recommends that the existing process be enhanced to minimize the potential additional cost burdens on customers and to more proactively prepare for potential critical situations in advance of when power plants provide ocial notice of plans to retire (see Figure 6 for a map of Recent and Planned Generator Retirements as of September 2012 [Retirements Since 2010]). Dynamic and proactive scenario planning can provide many bene"ts. For example, preparations for replacement solutions years in advance can minimize the need for Reliability Support Services contracts to safeguard the power system and thus reduce costs to customers. This long-term view will also allow for longer-term alternative solutions, such as repowering of existing generators and construction of new power plants, transmission, or other infrastructure projects that require more than the formal six-month notice period to implement.

NEW YORK CITY QUEENS NASSAU BROOKLYN CHAUTAUQUA YATES BROOME ONONDAGA ST. LAWRENCE OSWEGO TOMPKINS MONROE 95 N

Plant Size (in MW)

Retirement Status Fuel Source FUEL SOURCE KEY Coal Oil/Gas/Kerosene RETIREMENT STATUS R = Retired P = Planned N = Previously gave notice but rescinded 95 N

95 R

18 R

80 R

80 R

306 P

108 R

635 P

200 R

100 R

567 R

320 N

48 R

18 R

40 R

55 N

64 R

Figure 6 Recent and Planned Generator Retirements as of September 2012 (Retirements Since 201017)

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

RFI RESPONSES Multiple proposals were submit-ted in response to the RFI that could provide potential solutions in a Reliability Contingency Plan for the Indian Point Energy Center, such as adding addi-tional generation capacity in the Hudson Valley or New York City regions and upgrading transmis-sion into the Hudson Valley or New York City. In total, respon-dents to the RFI identi"ed over 6,000 MW of generation, including repowering proposals, to be located in the Hudson Valley or New York City regions and 5,700 to 7,600 MW of DC transmission to terminate in the Hudson Valley or New York City. Many of the projects referenced in the previous section under AC transmission upgrades are also applicable.

These responses demonstrate that the private sector is posi-tioned to support proposed potential Reliability Contingency Plan for the Indian Point Energy Center. The certainty and timing of construction will be critical components in the Reliability Contingency Plan development.

Proposals were submitted by:

American Electric Power Boundless Energy, LLC CityGreen Transmission, Inc.

Clover Leaf Power, LLC Cogen Technologies Linden Venture Competitive Power Ventures, Inc.

Cricket Valley Energy Center, LLC GenOn Energy, Inc.

Hydro-Quebec Production Iberdrola, USA New York Transmission Company (Transco)

NextEra Energy Resources NRG Energy, Inc.

NYC Energy, LLC Pure Energy Infrastructure, LLC Taylor Biomass Energy-Montgomery, LLC TransCanada Corporation Transmission Developer, Inc.,

Champlain Hudson Power Express Project US Power Generating Company (US PowerGen)

West Point Partners, LLC