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Business News

Nov 23
PSEG Power Connecticut, City of New Haven, Environmental Groups Reach Accord on Environmental Plan for New Peaking Generation Posted By Betsy Kraat

NEWARK, NJ-- PSEG Power Connecticut has reached agreement with the City of New Haven and the environmental community on a plan to ensure there is no net increase in emissions when 130 megawatts of new peaking generation are added to its existing New Haven Harbor Station.

Attaining the "no net emissions increase" result was the focus of an agreement the company signed Thursday with the City, New Haven Environmental Justice Network, Connecticut Coalition for Environmental Justice and Connecticut Fund for the Environment. The agreement spells out enforceable changes in operating protocols for the plant's existing unit designed to ensure that the three new peaking generation units will not increase overall air emissions when they become operational in 2012. PSEG Power Connecticut also committed to provide $500,000 to fund environmental projects in New Haven's East Shore neighborhood.

The consensus reached with the City and environmental community also marks a successful outcome for the first major test of Connecticut's new environmental justice law, which took effect in 2009 and requires power plant project developers in urban areas to conduct significant community outreach before obtaining permits from the Department of Environmental Protection.

PSEG agreed to a series of conditions that it will seek to add to the operating permit for the existing New Haven Harbor Unit 1 and to the operating permit for the new peaking generating units. As a result of the agreement, the City will support Connecticut Siting Council and DEP approvals for the project. The environmental groups agreed not to oppose the project, the permit renewal for the existing NHHS Unit 1, or the permits to construct and operate the peaking units.

The operating protocols include reducing Unit 1's maximum output while any of the peaking units are in service, and its minimum operating time. In addition, from May 1 to September 30 and on "Unhealthy Air Days" as designated by DEP, the unit will be "co-fired" with natural gas to the extent possible. Unit 1 also will be co-fired with natural gas for at least one hour for each hour one of the peaking units operates.

The three peaking units are slated to go into service in June 2012. The $135 million construction project is scheduled to begin in 2011. The new units will use highly efficient turbines -- the cleanest technology available -- to provide power during periods of peak demand. They will use natural gas as a primary fuel and be equipped with state-of-the art emissions controls to reduce nitrogen oxide and carbon monoxide emissions.

PSEG Power Connecticut
www.pseg.com

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