The Long Island Power Authority must study the area’s aging power plants with an eye toward upgrading the facilities, according to a provision of the next New York State budget.
Language that Gov. Andrew Cuomo (D) and state legislators have agreed upon requires the utility to “perform an engineering, environmental … and cost feasibility analysis and study” of upgrading — also known as repowering — the plants in Port Jefferson, Northport and Island Park. The focus will be on using more efficient and environmentally friendly technology at the plants.
Those three sites have been on shaky ground because they are old and using outdated technology. The Port Jefferson and Northport host communities have feared losing essential property taxes from the plants, which would happen if the plants were to reach the ends of their useful lives without being repowered.
“We are extremely proud that our representatives and our lobbying efforts are working toward a repowered plant in [Port Jefferson],” village Mayor Margot Garant said in an email. “We always believed this was the best repurposing of our site, and in the best interest of the ratepayers of [Long Island].”
The utility must begin studying Port Jefferson and Island Park no later than Oct. 1, and must start working on the second study in Northport by October 2018, according to the budget language. The studies must be completed and presented to the LIPA board of trustees and the department of public service no longer than 18 months after they begin.
LIPA will repower the plants if it determines, based on the studies, “that repowering any such generating facility is in the best interests of its ratepayers and will enhance the authority’s ability to provide a more efficient, reliable and economical supply of electric energy in its service territory, consistent with the goal of improving environmental quality.”
Assemblyman Andy Raia (R-East Northport) said the studies “could change the whole tax certiorari issue.”
Huntington Town and the Northport-East Northport school district have been battling LIPA over the value of that property, with the utility arguing the plant is grossly overassessed and filing to be reimbursed for taxes overpaid as a result. Town Supervisor Frank Petrone has extended an offer to LIPA to freeze its tax assessment if it repowers Northport.
“Northport and East Northport are looking down the barrel of a gun,” Raia said Tuesday, “and if they repowered Northport that whole case would go away.”
Sen. Ken LaValle (R-Port Jefferson) said in a statement that the study requirement will be included in the state budget “since LIPA did not follow through on their [previous] promises” to complete economic feasibility studies on the aging plants.
PSEG Long Island, the private utility that has taken over management of LIPA, was on board with the repowering studies this week.
“After careful study last year, we determined that there was no need for additional generation on Long Island until, at least, 2024,” PSEG Long Island spokesman Jeff Weir said in an email. “We wholeheartedly embrace this process because all we want is to implement the lowest cost and most reliable solutions for our customers on Long Island and in the Rockaways.”
Rohma Abbas contributed reporting.