Project: Long Island Power Authority – Calpine Bethpage 3 Power Project
Project: Oyster Bay, Long Island, New York

Overview:

The strong, steady growth of Long Island, New York spelled the need for new sources of electric power. To address the issue, Long Island Power Authority (LIPA) awarded a 20-year power purchase agreement (PPA) to Calpine Corporation for 80 megawatts (MW) of electricity, to be delivered through a new Calpine-constructed combined-cycle power plant in Oyster Bay, on Long Island. Construction started in November 2004 and was completed in December 2005. The PPA is a tolling agreement under which LIPA is responsible for procurement, transportation, and supply of natural gas fuel to the project, and in return, Calpine provides LIPA its full output.

E3 Services Provided:

• Due diligence review to support project financing by an international bank

• Witnessed the performance testing during the facility’s startup

• Reviewed the technical, commercial, and contractual aspects of facilities that the project shared with two adjacent projects, including gas and water supply, water discharge, chemical storage, and the control room equipment

• The above included assessing risks involved with sharing these facilities, and preparing cost and schedule estimates for the worst-case scenario: full replacement of these shared facilities. 

Project Spotlights:

Challenges Managed:

• Technical review of major project equipment purchased for a different project and stored offsite for an extended period of time

• Very small site located in a busy commercial and industrial area

• Short startup schedule
  
  
• Completing the project with New York area labor unions