PPL Global pulls the plug Electric co. withdraws gas plant proposal; Plant No. 2 to stay closed

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      For more than 1 1/2 years, Merrick and Freeport residents decried Plant No. 2, saying they feared the diesel exhaust it spewed into surrounding neighborhoods caused cancer. This past April, Freeport agreed to shut the plant down during a ceremony at the plant that was attended by Gov. George Pataki.
      Freeport had hammered out a deal with the Long Island Power Authority and PPL to construct two 44-megawatt power plants (one megawatt lights 1,000 homes) at the Power Plant No. 2 site. PPL was to own one of the plants and Freeport the other.
      In a prepared statement issued last week, Freeport Mayor William Glacken reaffirmed the village's commitment "to build and operate" one of the plants, which he hopes to have up and running by this summer.
      Glacken said, "We are disappointed that PPL Global will not be co-developing this critically needed energy source in parallel with our project. Both the village and the entire Long Island energy markets require new, environmentally responsible energy resources for long-term reliability."
      Hubert Bianco, Freeport's electric superintendent, said Power Plant No. 2 will remain closed, thanks to LIPA, which is providing the village with low-cost energy until the new gas plant is built.
      "The village and LIPA are working together to keep existing diesel units limited to emergency standby services until the village's unit begins commercial operation," said Bianco.
      In a Herald interview, LIPA Chairman Richard Kessel, of Merrick, said the power authority "will continue to supply Freeport with whatever energy it needs."
      He also said that at least a half-dozen other energy companies have come forward to express interest in building a gas-fired plant alongside Freeport's. "We're confident we'll be able to develop that site," said Kessel.
      New York State Sen. Charles Fuschillo Jr. (R-Merrick), who brokered the deal between PPL, LIPA and the village, said that he has spoken with the village and Kessel about the PPL pullout, and he remains "confident" that the village is "moving forward" to build its own plant.
      Fuschillo called PPL's abrupt exit from the project "a minor bump in the road."
      On its Web site, PPL said it dropped construction of the Freeport plant to help trim roughly $65 million in its 2003 and 2004 capital expenditures.
      Paul Champagne, president of PPL EnergyPlus, PPL's marketing subsidiary, also said, "Scheduling delays, resulting in increased project costs, have negatively affected the economic viability of the Freeport project."
      Joseph Kralovich, president of the Old Lindenmere Civic Association who led residents in the fight against Plant No. 2, said of PPL's withdrawal, "As long as this doesn't affect the situation where they won't run the old diesel plant, I'm not worried because it looks as though they're still going to build one to replace Plant No. 2."