Directs the New York state power authority to issue RFPs on certain gas turbine generators installed in and around the New York metropolitan area

Summary of specific provisions

Section 1. Outlines that the New York Power Authority shall issue an RFP for 10 gas turbine electric generating facilities.

Directs the authority to report on the range of solicited bids to the governor, the temporary president of the senate, and the speaker of assembly. NYPA is also authorized to use resources generated from the sale of one or more of these ten peaking facilities for the support of alternative energy generation projects within New York City.

Section 2: States this act shall take effect immediately.

Justification

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 raised from such sales or transfers should be used to encourage the goals of PlaNYC 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, thereby 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 NPA'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

New Bill.

Fiscal implications

Are only approximate at this time. The RFP will provides with an accurate value, but recent estimates put the value at a minimum of $200 million apiece.

Effective date

This act shall take effect immediately.