PSC grants Cayuga extension

More time has been put on the clock for an agreement to be reached in the repowering of a coal-fired power plant that was part of Public Service Commission Case 12-E-0577.

That case, Proceeding on Motion of the Commission to Examine Repowering Alternatives to Utility Transmission Reinforcements, involved two power plants, one of which was Dunkirk Power LLC.

NRG Energy, owners of Dunkirk Power LLC and National Grid, are waiting for PSC approval of a repowering plan the two companies have agreed to for the Dunkirk plant. In December, Gov. Andrew Cuomo traveled to Dunkirk to announce the two companies had reached an agreement.

The other plant is owned by Cayuga Operating Company LLC. It’s request for an extension until March 31 for Cayuga and New York State Electric & Gas Corporation to file a revised repowering proposal for the Cayuga generating station has been granted by the New York State Public Service Commission.

The ruling was issued Wednesday, one day after NYSEG withdrew its previous objection to Cayuga’s request for an extension past the previous Feb. 28 deadline.

“The request states that the additional time will permit Cayuga to continue to work with NYSEG in order to develop a mutually-agreeable revised proposal. Cayuga states that it is continually working with NYSEG to develop a proposal that will meet the Commission’s criteria as well as its fiduciary duties to its shareholders. In addition, Cayuga is reviewing the Term Sheet between National Grid and Dunkirk Power LLC to determine whether anything in that filing can assist the development of the proposal between Cayuga and NYSEG,” stated PSC Secretary Kathleen H. Burgess in the PSC filing.

Burgess acknowledged a Feb. 19 filing by Sierra Club and Earthjustice and a Feb 20 filing by Nucor Steel Auburn Inc. opposing another extension.

In its filing dropping its opposition to another extension, NYSEG noted cooperation between itself and Cayuga during the process.

“As stated previously, NYSEG and Cayuga have worked diligently in an attempt to develop a mutually-agreeable revised proposal and NYSEG has remained willing to continue. In light of new developments and in the continued spirit of cooperation, NYSEG is hereby withdrawing its opposition to the extension request,” stated Jeffrey A. Rosenbloom Director, NY Legal Services for NYSEG.

NYSEG’s filing apparently turned the tide in favor of the additional extension.

“Considering all of the arguments raised, Cayuga’s request to extend the deadline until March 31, 2014 to file a revised repowering proposal for the Cayuga generating station is granted on the basis that the additional time will promote the fair, orderly and efficient conduct of this proceeding,” Burgess concluded.

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