The Long Island Power Authority announced today it will move to finalize a power purchase agreement with Caithness Long Island II LLC that will be considered by the LIPA Board in the fourth quarter of 2014.
The 706 MW natural gas-fired plant would be built next to a current 326 MW plant operated by the company. LIPA has a 20-year power purchase agreement with the current plant.
A full environmental review of the project must be completed by Caithness under the State Environmental Quality Review Act prior to authorizing a power purchase agreement, and the agreement would be subject to review and approval by the New York State Attorney General and the Office of the New York State Comptroller.
The recommendation follows a competitive procurement seeking up to 2,500 MW of power generation. More than 45 companies submitted bids, with the LIPA Board of Trustees authorizing staff to negotiate with two finalists and select the project providing the best overall value to the authority.
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