C.W. Post's Center for Management Analysis Releases Study on Re-powering Long Island Electric Plants: No New Power Plant Sites Needed, Study Says.

Business Editors/Energy & Education Writers

BROOKVILLE, N.Y.--(BUSINESS WIRE)--Aug. 6, 2002

C.W. Post's Center for Management Analysis

PRESS CONFERENCE

Tuesday, August 6, 2002 at 11:30 a.m.

MINEOLA PRESS ROOM

Long Island needs more reasonably priced electricity.

Where will it come from? According to a new study by the Center for Management Analysis at the C.W. Post Campus of Long Island University, the modernization and re-powering of the Island's existing power stations will forestall the need for new generating sites for 20 to 40 years and beyond.

The study concludes that the age of the existing facilities is not a drawback. The report states that although these plants are not brand new, they "are excellent candidates for conversion to state-of-the-art combined cycle technology. For each unit converted, the generating capacity would essentially triple and the operating efficiency would nearly double." The first of such conversions could be finished by 2006.

Finding more energy for Long Island ultimately means re-powering some facilities with newer, more efficient technology. This could mean abandoning existing oil/gas fired boilers, while installing new combustion turbines and waste heat recovery boilers in their place. These combined cycle conversions, according to the study, achieve higher efficiency by using the exhaust gas from the system's combustion turbine to make steam that powers an additional generator. Combined cycle technology is already used on Long Island in the New York Power Authority's Flynn Plant in Holtsville and the Trigen-Nassau Energy Corp. plant in Mitchell Field.

"If all of the existing steam electric plants were converted to combined cycle, Long Island's electric supply could potentially be increased by about 4,700 megawatts (MW)," said Dr. Matthew C. Cordaro, director of the Center for Management Analysis. This technology could also be used to convert the simple cycle 240MW combustion turbine plant at the Shoreham Nuclear Plant site, offering 120 MW of additional energy with greater efficiency.

Another benefit of re-powering lies in the environmental benefits. Converting to combined cycle almost doubles operating efficiency, reducing the amount of natural gas or fuel oil required to produce electricity. It also results in reduced emissions into the air and allows the continued use of existing cooling systems. Furthermore, re-powering costs $200 to $400 less per KW than building plants at so-called "greenfield sites" - brand new, previously undeveloped sites - and two to three times less than building and relying on alternate forms of energy generation.

The study also recommends that proposed power projects now in the New York State licensing process be completed to accommodate the growth in electric demand on Long Island while existing plants are being upgraded and to serve as a back-up for outages that may be necessary at existing plants during the re-powering process. Finally, the study observes that re-powering does not necessarily preclude the potential for competition in electric supply to be introduced to Long Island. LIPA still has the option of purchasing at least some of the existing KeySpan plants within three years and could resell these facilities to competitive generating companies perhaps through an auction.

For additional information or a copy of "The Feasibility of Re-powering KeySpan's Long Island Electric Generating Plants to Meet Future Energy Needs," please call Dr. Cordaro at [phone] or email [e-mail].

The Center for Management Analysis (CMA) is an academically based organization that serves the diverse needs of government, business and the community by focusing on energy, environmental management and economic development issues. Its purpose is to provide a climate for research, consultation and problem solving by uniting educators and practitioners in addressing public issues. The Center's director, Matthew C. Cordaro, Ph.D., a 35-year veteran of the energy industry, has extensive management and administrative experience in all sectors of the energy business.