New York Power Authority Awards
Natural Gas Contracts to Three Suppliers
November 27, 2007
FOR IMMEDIATE RELEASE
WHITE PLAINS—A highly efficient and clean
generating facility that the New York Power Authority (NYPA)
operates in Astoria, Queens, is assured of reliable and economical
supplies of natural gas under three contracts approved Tuesday by
the NYPA Board of Trustees.
The contracts are with Colonial Energy, UBS Energy
LLC and Virginia Power Energy Marketing (VPEM), for a total
estimated cost of $245 million over a two-year duration. The
agreements stem from a NYPA solicitation for competitive bids for
the supply and delivery of natural gas, with the three lowest
responsive bids submitted by Colonial, UBS and VPEM.
The contracts, which will provide natural gas
supplies equaling 35,000 MMBtu (35 billion British thermal units)
per day, will cover approximately half of the gas requirements of
the Queens plant, which the Power Authority placed in commercial
operation in December 2005. The other half will be satisfied through
short-term, spot-market purchases as part of a balanced supply
The new contracts will replace existing supply
agreements with VPEM and BP Energy Co., expiring on Dec. 31.
The three companies awarded the new contracts will
be responsible for transporting the natural gas from the
Texas-Louisiana region via an interstate pipeline network that
connects with a local pipeline system operated by Con Edison. That
system then transports the gas to NYPA’s 500-megawatt plant.
The plant uses a combined-cycle technology for
capturing heat normally lost in the production of electricity.
Natural gas powers two turbine-generators to produce power at the
facility. The resulting hot gases are then harnessed to create steam
to drive a third turbine-generator.
The plant, equipped with the most advanced emission
controls, is located on a 47-acre East River site shared by another
NYPA generating facility, the Charles Poletti Power Project.
The Power Authority built the combined-cycle plant
to help it continue to meet the electricity requirements of its
large governmental customers in New York City, who save hundreds of
millions of dollars a year in lower energy costs as NYPA customers.
They include tax-supported schools, hospitals, municipal buildings,
and the subways and commuter trains. Those customers also benefit
from a wide range of energy-efficiency projects financed and
undertaken by NYPA for further savings.
■ NYPA uses no tax money or
state credit. It finances its operations through the sale of
bonds and revenues earned in large part through sales of
electricity. ■ NYPA is a leader in promoting
energy-efficiency, new energy technologies and electric
transportation initiatives. ■ It is the
nation’s largest state-owned electric utility, with 18 generating
facilities in various parts of the state and more than 1,400
circuit-miles of transmission lines.
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