Indian Point debate lingers

Eighteen months into the Indian Point debate, both sides are as far from a consensus as ever on two key questions: If the nuclear plants are closed, how would replacement power come to Westchester? And what effect would it have on power costs?

A study released recently by opponents of Indian

Synapse Energy Economics Inc. of Cambridge, Mass., noted that since May 2002, construction or expansion has begun at rive power plants statewide totaling 2,340 raw - all to be completed by 2005 - while state approvals have been issued for another four plants totaling another 2,850 mw, including 750 mw from a third unit at the Bowline plant in Rockland County.

"We have every reason to believe at with the addition of the new power plants both under construction and proposed, plus new transmission lines and a conservation plan, we can prevent dramatic increases in prices even if Indian Point is retired," said David Schlissel, senior consultant for Synapse.

Synapse said the region could reduce its energy demand by 10 percent if the state enacted more aggressive energy conservation programs. California claimed it cut power consumption by 12 percent in 2001 within months of a conservation plan prompted by the state's power crisis of the previous winter.

"There's no excuse for not doing more to conserve. It makes sense economically and environmentally," said Daniel Rosenblum, senior attorney for The Energy Project, part of Pace University School of Law. Pace Energy Project commissioned the Synapse study along with Riverkeeper Inc., the Garrison environmental group.

Alex Matthiessen, executive director of Riverkeeper, told reporters during a Feb. 28 conference call that at worst. homeowners could expect to pay an extra $50 to $100 more per year, with most of that cost coming during peak-demand summer months.

Riverkeeper has led a coalition of officials, activists and environmentalists in pressing for a shutdown of Indian Point since late 2001, arguing that nearby residents cannot be evacuated safely during emergencies - especially a 9/11-style attack.

Not surprisingly, a spokesman for Indian Point operator Entergy Corp. attacked the report's findings and repeated past arguments that keeping the nuclear plants running offered the best hope of reliable power at the lowest cost.

Also weighing in against the report were two organizations criticized by Synapse for statements supporting Indian Point the overseer of the state's wholesale energy market, the nonprofit New York Independent System Operator (NYISO); and the state's largest business group, the 4,000-member Business Council of New York State Inc.

NYISO spokesman Ken Clapp said losing Indian Point would bring state power reserves below the required 18 percent above projected peak power load.

"We would have severe, reliability problems," Clapp said.

Just how severe those problems would be is the topic of an upcoming NYISO study he said was now in planning stages. The study would also examine what the environmental effect would be of replacing Indian Point power, since virtually all new power plants use natural gas.

In late February, the ISO projected Westchester and the rest of' the region would barely have adequate power to get through this summer with a combo of existing and new plants plus energy-demand reduction by businesses. These give the state a total projected summer capacity of 37,087 mix. the ISO said.

Business council spokesman Matthew Maguire cited the poor investment market for new power plants since the collapse of Enron late in 2001 - a key reason why Bowline has seen years of delays - as well as bottlenecks in the state's power transmission network.

"There can be no mistaking that New York state needs the power that it gets from Indian Point," Maguire said.

Schlissel said the closing of Indian Point would compel power plant operators to rush into the region and fill the void by building new generators.

"To the extent the retirement of Indian Point means less capacity around the region, an owner-developer would have greater interest in building," Schlissel said.

Synapse said the metro area could also tap into the 5,000 mw available during emergencies through links to the transmission systems of New England, Ohio and the single system linking Pennsylvania, New Jersey and Maryland.

LINKING ALBANY AND NYC

Three days after the Synapse-Riverkeeper report was released, a year-old Albany business presented publicly what it hopes will be one solution to the region's energy puzzle. Conjunction L.L.C. has filed for approvals to lay a $750 million pair of transmission lines to be laid within the railroad right-of-way along the Hudson River. They would be buried along Metro-North's Hudson line and be above ground along the tracks stretching further north to Albany.

"We want it to be something that's not only a good project but is beautiful for the region," said Mitnick, who was born in Brooklyn and co-founded the New York Public Interest Research Group.

Conjunction's "Empire Connection" project would connect a power plant in the upstate community of New Scotland near Albany with a former Con Edison plant on Manhattan's West Side. The company projects savings to Westchester rate payers of $100 million per year, since the upstate power will cost less to produce.

The lines would carry a combined 2,000 megawatts - the same amount Indian Point generates. Yet Steve Mitnick, chief executive officer of Conjunction, said the twin transmission lines cannot be considered a replacement for the nuclear plants: "We assume Indian Point stays in service and is even relicensed. "

Power from the Albany plant would be converted from alternating to direct current and How to New York City, where it would be reconverted to alternating current and link to the region's power grid. The current conversion prevents formation of electromagnetic fields, which still triggers fears of cancer though a scientific consensus does not agree there's a link to the disease.

Mitnick identified a lead financial backer for Empire Connection, Credit Suisse First Boston, and said financing for the project is in progress. So are reviews by the Federal Energy Regulatory Commission and state Public Service Commission, as is a siting study by the NYISO.

Clapp said his organization is concerned Empire Connection could be knocked out of service by a single incident something Mitnick said the project avoids by transmitting using twin circuits.

Mitnick sought support for Empire Connection at a presentation organized by Westchester Count), and attended by about 50 environmentalists and officials from various governments. County Executive Andrew J. Spano said he has not taken a stance on Empire Connection.

"We don't have all the questions, let alone all the answers," Spano said.