Uniondale, NY – January 22, 2003 – The Long Island Power Authority (LIPA), supported by a coalition representing over 30 Long Island-based environmental, civic and faith-based groups, today released a Request for Proposals (RFP) seeking the development of the region’s – and perhaps the nation’s – first Offshore Wind Park that could be operational by late 2007.

LIPA’s RFP is seeking an experienced developer to build, own, operate and maintain – for a targeted 20-year period – an offshore Wind Park consisting of between 25 to 50 offshore wind turbines that would produce approximately 100 to 140 megawatts (MW) of electricity for Long Island.

LIPA’s offshore wind project would be a major cornerstone of Governor George Pataki’s announced objective of achieving a 25 percent target for the state’s electricity coming from renewable technologies within ten years.

The RFP indicates that LIPA would be willing to enter into a 15- to 20- year Power Purchase Agreement (PPA) for 100% of the electricity and environmental attributes that would be produced by the Wind Park. The Authority would be responsible for connecting the offshore Wind Park to its land-based electric transmission grid via a cable that would run from an offshore substation to a land-based LIPA substation. (See attached RFP Fact Sheet for more details).

Along with the RFP, LIPA also released the results of its Phase II Siting Assessment study, which evaluated potential locations for the Wind Park along Long Island’s south shore along with other key environmental issues. LIPA’s Phase I study, issued last April, demonstrated the high potential for developing offshore wind turbines as part of the Island’s energy resource mix.

“Wind power offers a huge potential for helping Long Island meet its ever-growing demand for electricity in an environmentally beneficial way,” said LIPA Chairman Richard M. Kessel. “It is essential that we carefully review all of the environmental, economic and engineering factors as completely as possible before any final decisions are made.

“An offshore Wind Park will not be built over night,” said Mr. Kessel. “There will be an extensive environmental review, continued outreach to local communities and commercial interests, and a thorough evaluation of the economic and engineering factors involved in such a project. Issuing the RFP and Phase II Site Assessment study are important steps forward in the effort to make Long Island the capital of renewable energy technologies, and in achieving Governor Pataki’s statewide goal of 25% energy renewables within ten years to lessen our dependence on fossil fuel-generated electricity.”

The Sustainable Energy Alliance (SEA) a coalition of some 30 environmental, civic and faith-based groups on Long Island have been working with LIPA, under the banner of the Long Island Offshore Wind Initiative (LIOWI), to help develop the scope of the Phase II Site Assessment and to help advance the use of offshore wind technology for the region’s energy needs and environmental benefit.

“Our draft Citizens Energy Plan emphasizes the importance of advancing a major offshore wind project for Long Island,” noted Kathleen Whitley, Program Manager for the Sustainable Energy Alliance. “We are pleased that LIPA is as committed as we are to bringing the many benefits of wind energy to its ratepayers and our environment.”

“Long Island is well on its way to becoming a leader in clean, renewable energy such as offshore wind generation,” stated Gordian Raacke, Executive Director of the Citizens Advisory Panel. “We commend Governor Pataki’s commitment to generate 25% of New York’s electricity from renewable energy sources and will work with LIPA to turn this goal into reality here on Long Island.”

“By working in coalition with so many groups that represent so many interests here on Long Island, we can now take a giant step forward to bringing the first offshore wind farm to North America,” said Todd Stebbins, LI Regional Coordinator for NYPIRG.“  LIPA and its coalition partners must now work diligently to reach out to the community in order to put any concerns at ease and explain how this major project is to be accomplished in our region.”

LIPA’s 60-page Phase II Siting Assessment identifies the general area off the south shore of Long Island that would be best suited for the wind farm’s location. The study evaluated a number of environmental, economic and operational factors – such as ocean depth and proximity to LIPA’s land-based electric transmission infrastructure – to provide potential developers with the offshore area that offers the best opportunity for constructing and operating a Wind Park with the least environmental impact on the communities.

The Siting Assessment restricts the placement of offshore wind turbines to a small, five square-mile area of open-ocean no closer than 2.5 nautical miles from shore, with water depths averaging about 60 feet. The optimal offshore area runs from a point southeast of the West End of Jones Beach to an area southwest of the West End of Robert Moses State Park. In addition to minimizing potential environmental concerns, the restricted offshore area is also in reasonable proximity to three land-based substations owned and operated by LIPA, one of which may be used to connect the wind turbines to the Island’s electric grid.

Before any offshore wind turbines are constructed, however, additional study would be needed to determine potential environmental impacts – such as the potential impacts on migratory birds and marine life – and the costs associated with building and connecting the wind generators to LIPA’s on-island electric grid.

The optimal offshore development area that has been identified offers a location that would have the potential for a low impact on migratory birds and marine life, according to the Site Assessment study because the eastern end of Long Island has a much larger migratory bird population and a larger concentration of commercial fishing interests. (See attached Site Assessment Fact Sheet for more details).

Prior to the development of the Offshore Wind RFP, LIPA, along with supporting environmental groups, conducted a symposium last June, to gather information from a wide range of Long Island stakeholders to identify issues of concern and to discuss the potential for developing an offshore wind power farm for Long Island.

LIPA also sought information from potential wind project developers last August, to gather technical data on wind turbines that would be helpful to both the RFP development process and the Phase II Site Assessment study.

“This has been a very careful and deliberate process,” said LIPA Chairman Richard M. Kessel. “It will continue to be a very careful and deliberate process.

“It’s also a unique process,” said Mr. Kessel. “The offshore Wind Park concept has a great deal of support from the environmental community on Long Island, which will be very helpful in gaining public support for what could be the nation’s first offshore wind turbines.”

Mr. Kessel emphasized that working with the numerous local, state and federal entities that have oversight on the development of such a project, it would take about two and one half to three years to plan the project and review all of the environmental issues. It would take about a year to construct the Wind Park and place it in operation.

The original study that identified the high potential for offshore wind power was issued last Apirl, on Earth Day. Entitled Long Island’s Offshore Wind Energy Development Potential: A Preliminary Assessment, the study was co-funded by LIPA and the New York State Energy Research and Development Authority (NYSERDA). The initial study was requested by Governor George E. Pataki, STAR, and former Brookhaven National Laboratory president John Marburger.

The Phase I and Phase II studies, along with the Offshore Wind Park RFP, can be downloaded from LIPA’s Web site at www.lipower.org.

“The Phase I study shows that harnessing the wind to produce electricity for Long Island has tremendous potential,” said LIPA Chairman Richard M. Kessel. “The Phase II study shows that it is possible to site a Wind Park off our south shore with a very low potential for significantly impacting migratory birds and marine life. Together, both demonstrate that it’s certainly worth moving forward with an RFP to determine the engineering and financial efficacy of building a Wind Park that could produce a reasonable amount of electricity for Long Island.”

About the use of wind power to help meet New York State’s electricity needs NYSERDA President William M. Flynn has said: “Under Governor Pataki’s leadership, New York State is now the home to two of the largest wind farms in the Eastern United States. Developing additional wind power resources in the State is a key component of New York’s overall energy strategy, as noted in the State’s 2002 Draft Energy Plan, to reduce our dependence on energy that is produced by burning fossil fuels.”

“Wind power is a win-win for Long Island,” Neal Lewis, Executive Director of the Long Island Neighborhood has stated. “It is non-polluting and can provide Long Island with an energy source free of Middle East political entanglements. Long Island environmental groups need to support this proposal and participate in a cooperative fashion in the review process that will now take place before the final plan is approved.”

“Making Long Island more energy self-sufficient by developing renewable, non-polluting energy capacity has been the dream of many environmentalists,” Sara J. Meyland, Executive Director and General Counsel of Citizens Campaign for the Environment has stated. “Every effort to curb our reliance on fossil fuels helps the Long Island environment and global health.”

“Offshore wind power is a proven technology that can produce significant amounts of energy that is clean, safe and renewable,” Scott Cullen, Executive Director of the STAR Foundation has stated. “LIPA should be commended for this initiative because a commitment to renewable energy is responsible and forward thinking.”

According to Mr. Kessel, LIPA’s offshore wind generation project is part of the Authority’s Clean Energy Initiative (CEI), which is a multi-year, $170 million program implemented at Governor George Pataki’s direction to promote energy conservation and efficiency, and to research, develop and implement the use of alternative energy technologies such as solar, wind, geothermal and fuel cells.

Under its CEI program, LIPA has: instituted a Solar Pioneer program to encourage the use of solar power systems; invested in fuel cell technology, and currently has 75 grid-connected units producing electricity for LIPA’s grid, and is placing additional units around Long Island; increased the application of geothermal technology for heating and cooling systems islandwide; undertaken an aggressive market transformation program to promote the use of Energy Star-rated appliances and energy efficient lights and lighting fixtures.

LIPA offers a wide range of programs that can help consumers lower electricity costs through energy conservation and efficiency. Information on these programs can be obtained by calling LIPA’s EnergyWise Infoline at 1-800-692-2626, or by going to LIPA’s Web site at www.lipower.org.

LIPA is a not-for-profit municipal electric utility that provides electric service to approximately 1.1 million customers in Nassau and Suffolk counties, and the Rockaway Peninsula in Queens. LIPA does not provide natural gas service, nor does it own any Island-based generation assets.

OFF-SHORE WIND PARK RFP HIGHLIGHTS

• Basic Schedule
   
  • January 22, 2003 – Release RFP
  • February 14, 2003 - Pre-Proposal Conference
  • May 1, 2003 – Proposals Due – By 3:00 P.M.
  • September 20, 2003 – Potential Award
  • December 2007 – Target Commercial Operation Date
     

• Requesting proposals for an Offshore Wind Park with a total nameplate capacity of 100-140 megawatts.
   
• Development will occur in an area of approximately 5 square nautical miles within the overall south shore development area as identified in the Phase II Site Assessment location that is approximately 52 square nautical miles in size.
   
• Turbines will be placed no closer than 2.5 n-mi from shore and no further than 6 n-mi from shore.
   
• The Authority will purchase all of the energy, capacity ancillary services and environmental attributes produced under the terms of either a 15 or 20 year Power Purchase Agreement.
   
• The technology to be used must be a service technology that can function for at least 20 years in the offshore environment on Long Island’s south shore.
   
• The proposer must build, own, operate and maintain the turbines, as well as an offshore substation that connects all of the turbines.
   
• LIPA will be responsible for the cable that connects the offshore substation to a land-based substation owned by the Authority.
   
• One or more entities submitting the proposal must have participated in the development of a commercial wind-powered electric generating plant.
   
• Proposers must provide a detailed description of the technology to be used in the Wind Park.
   
• The proposer’s permitting plan must include a listing of all municipal environmental, regulatory and other permits, approvals and certifications required for construction and operation of the proposed Wind Park.
   
• All proposals must contain a community outreach plan, an environmental assessment, and emergency operation and rescue plan.
   
• The proposals must also contain a detailed financial plan, project team organization client, and firm qualifications and resumes on project team members.
   
• All prices quoted in the RFP must remain firm until March 31, 2004.
   
• LIPA reserves the right not to award a contract.
   
• A $5,000 non-refundable fee must accompany each submitted proposal.

PHASE II STUDY: RECOMMENDED OFFSHORE SITING AREA HIGHLIGHTS

• Western portion of south shore that runs from Long Beach east to the Fire Island Inlet.

• Total area size is approximately 52 square nautical miles (n-mi), with a length of about 18 n-mi and a width of 3 n-mi.

• Northern border of area begins 2.5 n-mi from the shoreline; with approximately 85% of the recommended area lies beyond 3 n-mi.

• The perimeter of the turbine field will use about 5 square n-mi, less then 10%, of the total recommended area, and the actual structures will occupy less than 1% of the area within the perimeter.

• Approximately 25-50 turbines would be needed to produce 100 megawatts of electricity.

• Average wind speed in area ranges from 18.4 mph to 19.5 mph.

• The area mean water depth is 59.5 ft. with a minimal of 42.7 ft. and a maximum of 68.9 ft.

• Primary land use north of recommended area is publicly owned property used for recreational purposes.

• Providers access to three substations in Southeastern Nassau County and south-western Suffolk County that are capable of directing the wind-generated electricity to where it is needed on Long Island.

• The three substations would require little additional work to accept the wind generated electricity.

• LIPA’s transmission system from any of the three substation’s, would also require little additional upgrades to accept the added capacity.

• Existing roadways and bridges near the substations could be used to the extent practical, as the pathway for the level portion of the transmission cable that links, the turbines to the mainland, which would minimize coastal environmental impacts of the cable.

• The interconnection cable would run 9-13 miles in length from the turbine field to the substations.

• The interconnection cable would cost about $42 to $57 million based on preliminary estimates.

• The cable would be buried 6 to 10 ft into the seabed.

• With the vast majority of Long Island’s commercial fishing fleet using ports near Montauk and Shinnecock, the recommended area is away from the prime areas used for commercial fishing.

• Surf clam dredges are usually used in waters shallower than the depths within the recommended area.

• Recreational fisherman would likely benefit from the turbine structures since the hard surface of the submarine structure attracts encrusting invertebrate that fish prey upon.

• Records show that most major tropical storms and hurricanes track east of the site.

• Wave height in the area run from 7.5 ft. (July) to 30.5 ft. (December).

• Overall risk to most species of birds from wind turbines in the recommended area is likely to be low.

• More study on migratory bird patterns in the area will need to be conducted in the future.

• Visual impacts would be minimized due to the distance from shore, 2.5 n-mi and greater, where the units will be placed.

• Maximum output from the turbines will occur in winter, followed by spring, fall and summer.

• While summer output will be lower, on average, than other seasons, due to greater average offshore wind speeds on hot days, output will be significant during most of the Island’s peak electrical periods.

• Combined overall wind turbine height will be approximately 360 to 428 ft. above the surface of the water when the rotor blade is in the 12 o’clock position.

• Air traffic from JFK airport uses the airspace between 1500 ft and 7000 ft. in the recommended site area.

• Class E airspace of Republic airfield is 700 ft above the surface; however, the recommended site will have no material effect on Republic’s airspace.

• Smaller single engine aircraft can fly less then 500 ft. over unpopulated areas, but they do not typically roam too far out over the open ocean for safety reasons.

• The optimum area for the turbines within the recommended area would be southeast of the west end of Jones Beach to a point southwest of the west end of Robert Moses.

• The turbines could be placed in a configuration of two rows consisting of some 20 to 25 turbines in each row placed a little less then half a mile apart.

• It is estimated that the schedule to site, permit, construct and commission the offshore wind facility would take until 2007.