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Government Affairs Albany Update

September 14, 2001

GAC Agenda for Sept 19 Meeting

The Government Affairs Council meeting for Wednesday, September 19 at the Sagamore will go ahead as scheduled. The meeting will be held in the Sagamore's main hotel and will run from 2:00 - 4:00 p.m.

Robert Bellafiore, President of the Charter School Institute and Senator Mary Lou Rath will be the featured speakers. Also, Business Council staff will make a presentation of our preliminary thoughts on priority issues for 2002.

Annual GAC Issues Conference set for November 13

The annual Government Affairs Council Issues Conference will be held in Albany on Tuesday, November 13 from 9:00 a.m. to 4:00 p.m. This year's meeting will be held at a new location -- The New York State Nurses Association, in their auditorium. Their office is near Albany International Airport.

The meeting will be an opportunity to refine our priority issues for 2002, discuss in-depth strategy and hear from government speakers about some of the issues and politics of next year, including redistricting. Registration materials and directions to the Association building will follow.

Two New York City Power Plants Receive Approval

Con Edison's East River Repowering Project
On August 28th the New York State Board on Electric Generation and the Environment (Siting Board) gave approval to Consolidated Edison for its East River Generating Station, located at 14th Street and Avenue C in Manhattan. The project will add 360 megawatts of electricity to the existing plant.

The approval will allow Con Edison to construct two dual-fuel combustion turbine generators and two heat recovery steam generators at the site. As part of this project, Con Edison has proposed to install this state-of-the-art steam and electric generating equipment inside the East River Generating Station on 14th Street in Manhattan. The project will help insure a reliable steam source for customers that are currently being serviced by the Waterside Generating Station. Once the East River plant is operational Con Ed will retire the existing Waterside generating plant on 38th Street in Manhattan, and remove its three stacks and four boilers, thus eliminating its emissions. The in-service date is scheduled for the late 2002.

Con Edison's East River repowering web site can be accessed at: http://www.coned.com/errp/errp.html

KeySpan's Ravenswood Expansion
On September 5th, the Siting Board also gave its approval to KeySpan Energy's Ravenswood expansion project in Long Island City, Queens County. The 250 megawatt, natural gas-fired cogeneration facility will increase the plant's electric-generation capacity by 14%, representing a 3% increase in capacity for the City of New York. The Ravenswood facility currently produces about 1,800 megawatts of electricity. The plant will also transform waste heat into usable, saleable steam. KeySpan estimates the in-service date to be in 2003.

KeySpan's Ravenswood site can be accessed here

Sale of Indian Point 1 and 2 Nuclear Plants Completed

On August 29th the Public Service Commission approved the sale of Consolidated Edison's Indian Point 1 and 2 nuclear generating facilities, and other related assets, to the Entergy Nuclear Northeast. The approval completes the sale to Entergy of Con Edison's Indian Point 1 and 2 nuclear power plants in Westchester County. Indian Point unit 1 has been shut down and in safe storage since the early 1970s. Indian Point 2 is Entergy's ninth operating nuclear unit, and fourth in the Northeast.

The sale places the two operating units at the Indian Point site under a single owner for the first time in their 25-year operating history. Entergy purchased Indian Point 3 from the New York Power Authority last November.

Entergy paid Con Edison $502 million for the nuclear units, three gas turbines, and other assets. Entergy also paid book value, about $100 million, for nuclear fuel. Under the agreement Con Edison will also transfer to Entergy the $430 million decommissioning trust fund.

The companies also entered into a power purchase agreement for Entergy to sell the output of Indian Point 2 to Con Edison through the end of 2004 at an average price of $39 per megawatt hour. Con Edison will also have a capacity purchase transaction agreement from Entergy to sell the installed capacity of Indian Point 2 to Con Edison through April 2005, with options for capacity purchases for another six years.

Panel to Discuss New York's Energy Needs at Annual Meeting

At this year's Annual Meeting, the panel discussion, "Meeting New York's Energy Needs", will highlight the perspectives of those facing the task of regulating and formulating New York State's energy policy. The panel will include; Chairwoman Maureen Helmer of the Public Service Commission, Commissioner Erin Crotty of the Department of Environmental Conservation, Mr. David Owens of The Edison Electric Institute, Mr. William Museler the President/CEO of the New York Independent System Operator. The fifth panelist, Mr. Daniel Larcamp, is the Director of the Office of Markets, Tariffs, and Rates for the Federal Energy Regulatory Commission. The panel will be moderated by Mr. Ed Dague, Managing Director of WNYT-TV.

The panel is scheduled for Thursday, September 20 from 10am - 11am. The panel will discuss a number of issues including, but not limited to, the restructured and deregulated electricity markets, the energy needs of New York State, the role of state and federal governments in energy policy, and the ways we can match supply with demand in an economy that is increasingly more energy dependant.