LIPA in negotiations for two new natural gas-fired power plants

New York’s Long Island Power Authority (LIPA) has authorized its board to begin negotiations regarding two proposals to construct new natural gas power plants that will be built by 2018. The proposals selected are J-Power USA Development Co. Inc.’s Shoreham generation site and the Chaithness Long Island II LLC’s Yahank site.

LIPA said the new plants will also allow the company to repower National Grid PLC's 388 MW Port Jefferson natural gas and oil-fired steam plant.

The proposals were selected through an effort to pinpoint new generation to help meet the utility’s growing demand for electricity.

In 2010, LIPA issued a request for proposals seeking new and/or repowered resources. LIPA received 45 proposals from 16 entities on March 31, 2011, and the two that have been selected provided potential savings of millions of dollars.

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