Congressman Tom Reed (R NYS District 23) reaffirmed his support of a plan to repower the Cayuga Power Plant Saturday, at a town meeting in Lansing.  Plant owners and Lansing officials are still waiting for a determination by the New York State Public Service Commission (PSC) on whether the coal-fired plant will be repowered with natural gas or closed down.  Reed says that while he favors all energy alternatives, keeping the plant open by repowering it with natural gas is crucial to the local economy, as well as necessary to help insure a coming American manufacturing revitalization.

"It's not just an economic issue," Reed told about 30 local constituents.  "It's also a national security issue.  Anybody who says the war of oil or the war on energy is not something that exists, they're just not being straight with you.  It does exist, and we have put our men and women in harm's way because of energy issues over the years.  Anything we can do to control our own energy destiny, you're going to find me to be generally supportive of it."

With a significant property tax impact if the plant is closed, town and Lansing school officials have been anxious for the PSC's decision.  That determination has been repeatedly postponed by a number of extensions and circumstances that extend well beyond Lansing.  The Dunkirk power plant south of Buffalo had successfully navigated a similar process with the result that a repowering plan was approved.  The PSC approved a $140 million plan to repower NRG Energy's 592 MW coal burning power plant to a combination of coal and natural gas near the end of 2013.  But the company announced last August that it would be shuttering the plant indefinitely, as well as closing down it's 380mw Huntley coal-burning power plant north of Buffalo.

That prompted the PSC to request an analysis by National Grid and New York Independent System Operator (ISO), to determine whether the closings would impact reliable power production in the region.   National Grid's Carlos Gavilondo and ISO Executive Vice President Richard Dewey each sent their analysis on October 30th, concluding that there would likely be no major impacts, as long as proposed short term upgrades are installed on schedule by June 1, 2016.   The upgrades involve adding capacitor banks at the Huntley 230 KV station.  Dewey said the capacitor banks would maintain reliability through at least 2020, assuming no other changes to the overall state electric system.  But he added that there is a current reduction that will need to be addressed.

"The series reactors would improve the total Niagara Power Project and Ontario import energy deliverability, but there would still be a reduction compared to the levels of energy deliverability that exist today with Dunkirk Unit 2 and both Huntley units available" he wrote. "This reduction in energy deliverability will persist until permanent solutions are in place, to be addressed in response to the Western New York Public Policy Transmission Need. In the interim, the NYISO and National Grid are considering a temporary operating procedure to allow the constraining National Grid 230 kV lines to be secured to the higher short-term emergency ratings, similar to the existing NYPA Niagara run- back procedure, thus improving Niagara Power Project and Ontario import energy deliverability."

NRG officials stated in a September press release that they would be mothballing the Dunkirk plant regardless of the PSC's go-ahead to repower it, because of a lawsuit brought by Entergy Corp., which owns the James A. FitzPatrick Nuclear Power Plant, also scheduled to be closed in  late 2016 or early 2017.  The lawsuit claims that the Federal Energy Regulatory Commission has exclusive jurisdiction over determining whether or not the plant should be repowered.  Entergy has filed the same argument against repowering the Lansing plant with the PSC.


But Reed said that Entergy is playing politics because of the flap surrounding the Indian Pont nuclear plant, which is located 26 miles away from New York City, and which supplies 25% of the city's electricity.  Gov. Andrew Cuomo has called for the closing the more than 2,000 megawatt plant.  Reed said he has spoken to Entergy officials to tell them to keep their politics separate from the situation here.

"Indian Point politics is starting to contaminate the debate on our power structures in regards to western New York and Chautauqua County, as well as here in Tompkins County," he said.  I think a lot of what's going on with that lawsuit is Entergy positioning itself to take the Governor on in regards to the Indian Point closure.  Now they're putting Fitzpatrick into the mix, and they're putting Dunkirk into the mix, and they're potentially putting Lansing into the mix.  That's a problem.  I told them, 'Don't muck up your other issues with what we are trying to do in our back yard.'  Hopefully we can bring a resolution to the lawsuit and everyone can come to a conclusion that we can all agree on.  That's my hope and that's what we're trying to do."

Reed said that while Dunkirk is being mothballed as of January 1, the repowering plan is far from dead.  An attorney, Reed said that Entergy's jurisdictional claim probably won't hold up, at least where the Lansing plant is concerned.

"There's one unique circumstance in New York that the other cases they are relying upon -- a Maryland case, and, I believe a Delaware case," he explained.  "New York legislatively said it's not just the ratepayers that we're going to take into consideration.  The State Senate, Assembly, and Governor's office included in their legislation that they're going to look at the long term economic impact of the loss of that power.  So now you've got a state that has legislatively determined that it's public policy  is not just rate-powered, but it's also these other local impacts that have to be considered.  I think that's distinguishable from the cases that Entergy is relying upon."

He insisted that Dunkirk is not on a path to closure, and that the repowering plan is still very much in play, despite the upcoming shuttering.  He also said he continues to be active on that front and on the Cayuga Power Plant front, doing whatever he can to convince the PSC to approve the Lansing plant's repowering plan.

"I weighed in with the PSC," he said.  "I have talked with the chairman of the PSC half a dozen times in the last few months.  Audrey and I have gotten to know each other very well.  I've weighed in with my concern about where this is heading, and making sure that we and the PSC are on the same page where it comes to repowering these facilities.  I have also weighed in with NRG, the owner of the Dunkirk facility, directly and on a regular basis, as well as Entergy.  We've been supportive of the (Cayuga) plant, we're going to continue to do whatever you need from us to stand with you in regards to it."

Reed said that power generation needs to be recognized as necessary, especially if there is to be a manufacturing rebirth that he supports.  He said that having the power for that is critical to making sure that it actually happens.

"I know it's a contentious issue, especially in this area... the issue of what is that power generation portfolio look like," he said.  "We've been supportive of an 'all of the above' policy, which includes natural gas and includes the development of our oil fields, and includes a commitment to alternative renewables where necessary, and where appropriate.  This is an example of a larger issue that's happening on the national stage.  As we're going from a coal-based power generation system to a natural gas conversion, to a potential long term alternative renewable.  When we ultimately get there -- that's down the road, but it's not going to happen right now.  In my opinion, and looking at the data, that is not going to happen in the short term foreseeable future for us, here in the United States."

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