Directs the New York state power authority to issue requests for proposals on certain gas turbine generators installed in and around the New York metropolitan area.
TITLE OF BILL: An act directing the power authority of the state of New York to release requests for proposals on certain natural gas powered generating facilities in and around New York city
To raise revenue for the Power Authority of the State of New York through the sale of numerous "peaker" generators in and around New York City and to provide resources for alternative energy generation projects within the City.
SUMMARY OF PROVISIONS:
Section one of the bill requires the New York Power Authority ("NYPA") to issue a request for proposals ("RFP") for the purchase of 10 specified gas turbine electric generating facilities within 90 days of the effective date. NYPA is required to issue requests to determine the likely value of the sale of the generators and to submit a report to the Governor, the Temporary President of the Senate, and the Speaker of the Assembly regarding the range of bids received. NYPA will be authorized to sell one or more of the 10 specified gas turbine electric generating facilities if NYPA and its Trustees find that it the sale or sales are in the best interest of NYPA and the citizens of New York. The revenue collected from any sale or sales shall be used in New York City to encourage alternative energy generation. Such alternative energy generation projects shall be funded following a RFP.
Section two of the bill provides that this act shall take effect immediately.
New York City faces considerable obstacles in moving toward a greater reliance on alternative energy sources. It is the interest of the citizens of New York City and of the entire state to support new alternative energy generating projects through the transfer of publicly owned and operated traditional power entities within the five boroughs to private entities committed to service and technology upgrades.
Revenues generated from the sale or transfer of the specified gas turbine electric generating facilities are to be used to encourage, the goals of PIaNYC for a cleaner and more reliable energy future.
An ideal candidate for such an endeavor is the New York Power Authority ("NYPA"). NYPA should issue a Request for Proposals ("RFP") to sell its small, natural gas-powered facilities in an around New York City, there- by providing independent power producers with the opportunity to help trim the budget shortfall while, as the same time, applying their expertise to the operation of those facilities. If an RFP for those generating facilities was issued, it is possible for NYPA to bring in significant revenue to apply to the city's and state's future energy requirements_ Such transactions should also
benefit the city and state for years to come through the increased tax revenues that should be realized on an ongoing basis.
In the Summer of 2001, NYPA began operating ten natural gas-powered generating facilities at six sites in New York city, thereby adding approximately 450 megawatts of energy to NYPA's portfolio. These facilities were intended to be used as "peaker" plants, needed only in times of extremely high demand or in case of emergency. The existence and use of these units by a public entity has been controversial since the onset, and moving these traditional petrochemical powered units to the private sector would allow NYPA the opportunity to help move the city into a brighter and cleaner future through the support of alternative energy projects such as solar arrays, wind and tidal generation in partnership with independent private generators.
It would not be the first time that NYPA sold some of its property to the private sector, and it is likely that interested investors would be attracted to NYPA's small generation facilities as well. While it is impossible to predict potential offers, it should be noted that, in 2008, TransCanada corporation purchased the Ravenswood Generating Facility in Queens from National Grid for $2.8 billion---a price that exceeded expectations and demonstrates the level of attention that the private sector takes in worthwhile assets.
PRIOR LEGISLATIVE HISTORY:
2011-12: S.5406-A - Referred to Corporations, Authorities and Commissions 2010: S.7208 - Referred to Corporations, Authorities and Commissions'
The RFP will provide an accurate value, but recent estimates put the value at a minimum of $200 million apiece.
This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 4426 2013-2014 Regular Sessions IN SENATE March 27, 2013 ___________Introduced by Sen. GOLDEN -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions AN ACT directing the power authority of the state of New York to release requests for proposals on certain natural gas powered generating facilities in and around New York city THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. (a) The power authority of the state of New York ("authori- ty") shall within 90 days of the effective date of this act, issue a request for the proposals to purchase from the authority one or more of the ten gas turbine electric generating facilities with a nameplate capacity of less than 80 megawatts each, owned by the authority as of the effective date of this act and located in and around the city of New York. Such request for proposals to sell such generators shall be put out for bid for a maximum of 90 days and shall include the following sites and generating facilities: (1) Two units at Harlem river yard plant, located in the Harlem River Yards, at E. 132nd street, Bronx, New York 10454; (2) Two units at Vernon Boulevard, located at 41-98, 42-02, 42-16 Vernon boulevard, Long Island City, Queens, New York 11101; (3) Two units at the Hell Gate plant, located at Locust Avenue, E. 132nd street to E. 134th street, Bronx, New York 10454; (4) Two units at the Windsor Terrace power plant, located at 3rd avenue and 23rd street, Brooklyn, New York 11232; (5) One unit at Pouch terminal; located at 1 Edgewater street, Staten Island, New York 10305; and (6) One unit at North First avenue and River street, located at 47-79 River street, Brooklyn, New York 11211. (b) The authority shall issue such requests to determine, among other things the likely value to New York state for the sale of such genera-EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10081-01-3 S. 4426 2
tors. The authority shall, within 30 days of the end of the solicitation period, report on the range of solicited bids to the governor, the temporary president of the senate and the speaker of the assembly, subject to all appropriate and applicable confidentiality requirements with respect to individual bids and information contained therein. (c) The authority, as its trustees deem feasible and in the interest of the authority and the citizens of the state of New York, shall be authorized to permit the sale of one or more of the turbine electric facilities listed in subdivision (a) of this section. Revenues collected from such sale or sales shall be used to encourage alternative energy generation, transmission and delivery, including ultra-high efficiency cogeneration or tri-generation plants, within a city of one million or more in the state of New York. Furthermore, the authority shall only authorize such alternative energy projects following a request for proposals to select qualified private entities for public private part- nership ventures consistent with the stated goal of the updated PlaNYC 2030 to ensure that future New Yorkers have access to clean, affordable and reliable power, through the encouragement of a more diversified portfolio of private sector-driven supply and transmission investments. S 2. This act shall take effect immediately.