Reliable efficient power for a cleaner America KILLINGLY
Reliable, efficient power for a cleaner America KILLINGLY ECONOMIC DEVELOPMENT COMMISSION JANUARY 9, 2018 www. killinglyenergycenter. com 1
KEC | Overview Type of Facility: State-of-the-art 550 -MW combined-cycle w/ duct firing enough electricity to power about 500, 000 homes Clean and efficient gas fired – enhanced reliability due to firm gas supply and back-up fuel 150 -foot exhaust stack Capable of continuous “Baseload” power supply Operational flexibility to respond to changing demand Aggressive water conservation plan with air cooling reduces water demand by 95% Electrical Interconnection and Fuel: Interconnection via adjacent Eversource 345 -k. V circuit Natural gas via upgraded Yankee Gas lateral To be located in existing right-of-way Limited use of Ultra Low Sulfur Diesel as backup fuel for improved reliability www. killinglyenergycenter. com 2
KEC | Location I-395 Lake Rd. Gen Station Killingly Industrial Park Killingly Energy Center Site Switchyard Frito-Lay Rite-Aid Dist. Center www. killinglyenergycenter. com 3
KEC | Site Rendering www. killinglyenergycenter. com 4
KEC | Site Layout www. killinglyenergycenter. com 5
KEC | The NEED Killingly Energy Center is needed to provide: New economic development in the Town of Killingly and the State of Connecticut A clean, reliable and affordable source of energy that the region needs to compete in the 21 st century A new and clean power generation resource to meet the region’s demand as older units retire A reliable generation source with a robust fuel supply – firm gas supply with on-site back up fuel storage Flexible generation to enhance the integration of intermittent renewable resources. www. killinglyenergycenter. com 6
KEC | Economic Impact $700, 000 capital investment ~450 direct union construction jobs 20 - 25 permanent, six figure income, operations jobs One of the largest tax payers in Killingly Community Environmental Benefits Agreement Other Town infrastructure improvements Large wastewater utility customer Minimal demand on town services www. killinglyenergycenter. com 7
KEC | Tax Stabilization Agreement • 23 years – 3 years construction; 20 years operation • Total: $91, 000 • No Abatement • Consistent and reliable cash flow • Total Proposed Tax Payments: $91, 000 • Pre-operational Period (3 years) - $1, 000 • Operational Period (20 years) - $90, 000 • Average annual tax payment represents >10% of Town’s annual budget, while having minimal impact on Town services and infrastructure • Additional taxes to be paid to the Williamsville Fire District www. killinglyenergycenter. com 8
KEC | CEBA Community Environmental Benefits Agreement (CEBA) $5 million Payment schedule $2 million on financial close $2 million on first anniversary of financial close $30, 000 on financial close Creation of a Bridge of Flowers on the Water Street pedestrian bridge, and Purchase and installation of benches along the river trail (or similar projects) 20 annual payments of $48, 500 each (total $970, 000) scholarships, asthma research, tree planting, Earth Day activities, water level testing at Alexander Lake, and other school-related activities Conservation Easements - 20 -acres on the north side of the site and easements associated with wetland reconstruction A decommissioning bond to be in place for the life of the facility for future decommissioning costs www. killinglyenergycenter. com 9
KEC | CEBA – Conservation Easement www. killinglyenergycenter. com 10
KEC | Non-Cash Community Benefits Exclusive of property taxes and CEBA benefits – funded by NTE: • Water infrastructure improvements resulting in increase reliability of water supply, supporting economic development • Local connections to CT Water System and Killingly Sewer System • Killingly waste water system improvements (new lift station) • Gas infrastructure modernization and expansion, doubling the transportation capacity into the industrial park to support economic development • Improvements to Lake Road • Wetlands reconstruction and invasive species removal Total Non-Cash Benefits Package > $20, 000 www. killinglyenergycenter. com 11
KEC | Benefits Summary and Comparison www. killinglyenergycenter. com 12
KEC | Background • 2016 - NTE filed an application for certification to the Connecticut Siting Council (CSC). • March 2017 - after KEC withdrew from the 2017 forward capacity auction (FCA 11), the CSC denied KEC’s application without prejudice, interpreting KEC’s withdrawal as an indication that KEC is not needed. • June 2017 – DEEP issues final air permit based on Siemens combustion turbine • Fall 2017 KEC made the decision to utilize a Mitsubishi 501 JAC combustion turbine – resulting in: • Improved emissions profile • Enhanced output results in ability to reduce duct firing, and significantly reduce annual emissions • Enhanced site arrangement eliminating of a segment of the retaining wall, allowing for naturally vegetated slopes surrounding the entire footprint www. killinglyenergycenter. com 13
KEC | Background • October 2017 - water supply and construction agreement executed with the Connecticut Water Company. • November 2017 – NTE submits air permit minor modification applicaiton based on Mitsubishi combustion turbine www. killinglyenergycenter. com 14
KEC | Schedule Ongoing January 2018 February 2018 May 2018 August 2018 March 2021 Review of permit applications Filing updated petition to CSC to reopen docket Forward Capacity Auction (FCA 12) All approvals received Financial close and commencement of construction Commercial operation www. killinglyenergycenter. com 15
Reliable, efficient power for a cleaner America www. nteenergy. com
- Slides: 16