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BETHLEHEM, N.Y., June 10, 2002 -- PSEG Power New York Inc. (PSEGNY) officially began construction recently of the $400 million Bethlehem Energy Center (BEC), a 750-MW natural gas-fired combined cycle power plant.
The groundbreaking ceremony, attended by New York Gov. George E. Pataki, other government, community, economic development officials, and representatives of environmental organizations, marked the next phase in a process that began in October, 1999 when PSEGNY acquired the Albany Steam Station from Niagara Mohawk Power Corp. and announced plans to redevelop the site.
"Albany Steam Station was our first acquisition and the construction start at BEC is another important step in the growth of our business," said Frank Cassidy, president and chief operating officer of PSEG Power, parent company of PSEGNY. "BEC will deliver substantial energy, environmental, and economic benefits to the region and New York state," Cassidy continued. "We appreciate the support of the Bethlehem community and the strong cooperative effort among local and state officials and regulatory staff that was a major factor in this project moving forward."
Cassidy also thanked Gov. Pataki for taking part in the groundbreaking event. "The governor's leadership on environmental issues affecting New York and the Northeast makes his participation especially meaningful," Cassidy said. "BEC is a clear example of how government and industry can work together to achieve the goals of providing safe, reliable, and affordable energy while improving environmental quality."
"The Bethlehem Energy Center represents the right technology at the right time, and will play an important role in our ongoing efforts to provide New Yorkers with cleaner, more reliable and more affordable power," Governor Pataki said. "This state-of-the-art Energy Center will replace 1950's technology with a cleaner, more efficient facility -- a step that will dramatically reduce environmental impacts while nearly doubling electric generating capacity."
"The Bethlehem Energy Center is a true investment in the growth of our town," said Sheila Fuller, supervisor of the Town of Bethlehem. "Not only is the plant an integral component of our tax base, it employs people from our community and makes the area attractive to other manufacturers that need a steady, reliable, source of power. We look forward to a beneficial relationship with PSEGNY and the staff at the plant."
The $400 million BEC will replace the existing 400-MW Albany Steam Station at a site three miles south of Albany in the Town of Bethlehem. The new plant is expected to begin commercial operation in 2004 at which time the existing station will be retired. BEC employs the latest, natural gas-fired combined cycle technology and will be among the cleanest and most efficient electric generating facilities in New York and the Northeast.
In addition to increasing electric energy supplies and supporting New York's competitive energy market, BEC will provide dramatic reductions in air emissions and use of Hudson River water for cooling. Emissions of smog-causing nitrogen oxides and sulfur dioxide, the pollutant associated with acid rain, will be reduced 97-98%. Water use will be cut 98-99%.
The project has generated widespread community support and has been endorsed by a number of environmental organizations including the American Lung Association of Northeastern New York, the Natural Resources Defense Council, the Hudson River Keeper, and Scenic Hudson.
PSEG Power, one of the largest independent power producers in the U.S., has more than 12,000 MW of electric generating capacity in operation and approximately 4,000MW of capacity in construction or advanced development. Power is a subsidiary of Public Service Enterprise Group Incorporated (PSEG/NYSE: PEG), diversified energy holding company with more than $25 billion in assets. PSEG has its headquarters in Newark, NJ.
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