N.Y. PSC Approves Construction of NRG Astoria Repowering Project

The New York State PSC granted approval to NRG Astoria Power LLC for the construction of a 1,040 MW electric generating facility to replace an existing 600 MW facility located at an industrial site in Long Island City, New York.

NRG Astoria intends to develop, finance, construct and operate the repowered project as a merchant developer without relying upon cost-of-service rates set by either a federal or state regulatory entity. NRG is still seeking a buyer for the plant's output under a long-term contract.

The power plant project will be constructed in two phases. The first phase involves the replacement of seven simple-cycle peaking generators that have a combined rated capacity of 120 MW, with two combined-cycle units capable of providing a total of 520 MW of electricity.

The first phase is expected to take 30 months to construct and be operational in the summer of 2013.

The second phase involves the replacement of 24 simple-cycle units that have a combined capacity of 480 MW, with two combined-cycle units identical to those involved in the first phase. The second phase is also expected to take 30 months to construct, and is anticipated to be operational in 2015. The project will be located within Consolidated Edison's Astoria Complex.

The Commission also approved a lightened regulatory regime for the new facility and approved the proposed financing. NRG Astoria estimates that the total cost of the project would be approximately $1.4 billion.