Project: Long Island Power Authority – Pinelawn Power Project
Location: Babylon, 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) for 80 megawatts (MW) of electricity to Pinelawn Power Partners, Inc. (PPPI), which constructed a new combined-cycle power plant in Babylon, New York (Long Island). Construction started in November 2004 and was completed in October 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, PPPI provides LIPA its full output.

E3 Services Provided:

• Supported the full and sole underwriting of financing by an international bank, including due diligence review for the underwriting

• Provided monitoring services to PPPI and its lenders during construction and startup phases

• Secured private equity and construction financing

• Crafted an engineering, procurement, and construction contract acceptable to all parties

Project Spotlights:

Challenges Managed:

• Gained lender acceptance of inexperienced minority partners 

• Demolition and removal of existing facilities containing asbestos

• Completion of project with New York area labor unions
  
  
• Met an accelerated completion date imposed by LIPA, when project was at the nine-month mark of a 12-month construction period