LIPA PEAKING PLANT OPPORTUNITY

Transcription

1 LIPA PEAKING PLANT OPPORTUNITY Presented to: Village of Greenport, NY FEBRUARY

2 PROJECT TEAM COGENTRIX/CARLYLE Project owner/operator GLOBAL COMMON, LLC Project developer Private energy development company Developed existing Greenport peaking plant, which was sold to Hawkeye Electric, Inc in 2003 TWOMEY LATHAM, LLP Project counsel Largest law firm in eastern Suffolk Extensive experience with energy and environmental issues Engineering and construction Environmental consulting and permitting Plant operations 2

3 Project Benefits Rent and tax revenue Meet increasing peaking demands on East End Replace inefficient peaking plants Avoid new transmission from western LI Firm up renewables Improve local grid reliability Help control energy costs 3

4 Introduction to Cogentrix Energy Power Management, LLC

5 Cogentrix Energy Power Management ( Cogentrix ) Cogentrix develops or acquires, constructs, owns, and operates power facilities. Since 1983, Cogentrix has developed 20 power plants with a total generating capability of approximately 5,100 MW and acquired 22 additional facilities with a total generating capability of approximately 4,200 MW. The company has a seasoned management team with experience in engineering, asset management and O&M across all fuel types. Ø Independent Power Producer, founded in 1983 Ø Ø Headquartered in Charlotte, NC Owned by funds managed by The Carlyle Group, one of the world s largest and most diversijied multi- product global alternative asset Jirms. Ø Full compliment of in- house support services: Development Asset Management Operations Finance Legal Environmental & Regulatory Engineering and Construction Management Ø Cogentrix has constructed 17 power plants, acting as EPC contractor on 13 Ø Cogentrix has operated a generation Jleet in excess of 7,000 MWs Ø Current ownership in the U.S. includes 11 operating generation projects: 1,143 MW natural gas 478 MWs coal 73 MWs solar 5

6 Projects Developed by Cogentrix 6

7 Construction, Asset Management and O&M Experience Plant Fuel Type Capacity (MW) Commenced Ending Construction Management Asset Management O&M Lumberton Coal ü ü ü Elizabethtown Coal ü ü ü Kenansville Coal ü ü ü Roxboro Coal ü ü ü Southport Coal ü ü ü Hopewell Coal Ongoing ü ü ü Portsmouth Coal Ongoing ü ü ü Rocky Mount Coal ü ü ü Richmond Coal ü ü ü River Road Natural Gas CC ü û ü Batesville Natural Gas CC û û ü ü Whitewater Natural Gas CC û ü ü Cottage Grove Natural Gas CC ü ü ü Rathdrum Natural Gas CC ü ü ü San Pedro de Macrois Oil-fired CC ü ü ü Green Country Natural Gas CC ü ü ü Ouachita Natural Gas CC ü ü ü Southaven Natural Gas CC ü ü ü Caledonia Natural Gas CC ü ü ü Logan Coal û ü ü Carneys Point Coal û ü ü Indiantown Coal û ü ü Selkirk Natural Gas CC û ü ü Scrubgrass Waste Coal û ü ü Northampton Waste Coal û ü ü Cedar Bay Coal Ongoing û ü ü Plains End I Natural Gas Peaker û ü ü Plains End II Natural Gas Peaker ü ü ü Sunray Solar thermal Ongoing û ü ü Alamosa Solar CPV Ongoing ü ü ü 7

8 Cogentrix Current Operating Plants Vaca Dixon Red Oak Midway Panoche Alamosa Hopewell Portsmouth Sunray Enterprise Border / Border Land Solar Cedar Bay Gas Coal 8

9 Overview of the Carlyle Group Ø Established in Washington, D.C. in 1987, Carlyle is one of the world s largest and most successful investment Jirms: o o o Over $180 billion in assets under management More than 1,400 employees operating in 34 ofjices across 6 continents Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, Jinancial services, healthcare, industrial, technology & business services, telecommunications & media and transportation Note: As of June 30,

10 East End Energy Requirements Minimum 200 MW on East End Maximum 250 MW 75 MW preferred to Southold substation Additional capacity possible with substation expansion Remainder preferred to Buell, Southampton, Deerfield and Montauk substations Permitting/resource constraints Air permit Fuel storage Water supply Land requirements 2-5 acres LIPA technology requirements Lender/investor requirements 10

11 Project Description Peaking generating units Gas turbine Low sulfur diesel fuel on East End due to limited gas supply Low sulfur diesel has about 1/20 as much sulfur as kerosene, which is used in the existing plant Existing plant has operated 484-1,055 hours per year since 2009 New plant operations will depend on customer needs Maximum of 2,000 hours per year of operations under air permit Unit and project size depend on location and substation constraints 75 MW-100 MW delivered to Southold substation 150 MW delivered to Deerfield and Southampton substations 11

12 Emissions Data for Existing Plant 12

13 Comparison with Permit Limits and Other Metrics NOx emissions have been well below the annual emissions cap of 22.5 tons/ year NOx (synthetic minor), ranging from 2.5 to 5.9 tons/year (11 to 26% of NOx cap) Sulfur limit is 0.05% sulfur; the facility has been burning fuel with about 0.03% sulfur (60% of limit) CO2 emissions in 2013 were equivalent to about 12 cars per day 13

14 Project Schedule Proposal submittal- March 31, 2014 LIPA selection- December 2014 Project development and permitting- Jan Q Contract execution- Q Financial closing-q COD- Required <May 1, 2019 Construction period four to 12 months 14

15 Business Arrangements with Village of Greenport 2-4 acre site Long-term lease 20 year term with extension options Lease payments $486,000 per year assuming 75 MW plant Taxes to be determined Option periods to match LIPA schedule Contingent on selection by LIPA 15

16 Discussion 16