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11 Champlain Hudson Power Express Project Overview Presented to the New York Association for Energy Economics September 27th, 2012.

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Presentation on theme: "11 Champlain Hudson Power Express Project Overview Presented to the New York Association for Energy Economics September 27th, 2012."— Presentation transcript:

1 11 Champlain Hudson Power Express Project Overview Presented to the New York Association for Energy Economics September 27th, 2012

2 2 Champlain Hudson Power Express Advancing the Application of Economics

3 Champlain Hudson Power Express Project Overview In-development since 2008, in-service by mile, underground 1,000 MW High Voltage Direct Current (HVDC) proposed transmission line Once constructed, the project will: Deliver hydro and wind power to meet the demands of a growing population and economy Create jobs and fuel economic growth Cut power costs for consumers by $650 million a year Broadly supported Moving steadily through regulatory process (state and federal) Private financing ($2.2B) 3

4 Champlain Hudson Power Express Project Overview FERC mandate to sell merchant service on the line 75% anchor tenant 25% open season auction Economics of the project are based on the energy and capacity value spreads The FERC/NYISO’s deregulated locational based marginal price (LBMP) markets send proper investment signals Project qualifies as an in-city resource for capacity sales by the controllable nature of the HVdc transmission system Strengthens the Grid Relieves congestion upstate to downstate Diversifies the state fuel supply mix Delivers Black-start capability Submitted proposal into the State Energy Highway Initiative 4

5 Champlain Hudson Power Express Commercialization – Generator Push FERC Merchant Mandate July % negotiated anchor tenant 25% open season (auction) Anchor Tenant Hydro-Quebec year agreement Will participate in Open Season Developing 5,000MW of new hydro for the export market May provide debt for the project Open Season Internet based auction Third party execution and reporting to FERC Credit worthy counter-parties with long term off-take 5

6 Champlain Hudson Power Express Creating Jobs and Fueling Economic Growth Construction Phase $150 million increase in New York GDP/year Average of 300 new direct jobs for 3.5 years 1,200 indirect and induced jobs Operational Phase New York consumers and businesses will pay less for their power, saving an estimated $650 million annually. The state’s economy expected to grow by about $600 million per year 2,400 new indirect and induced jobs throughout the economy expected over 10 years Estimated $20 million per year in property taxes to host communities Note: Economic study was completed by London Economics International LLC (LEI). LEI prepared the study using Regional Economic Models, Inc.'s P1+ macroeconomic model for the state of New York. 6

7 Champlain Hudson Power Express Delivering Clean, Reliable Power CHPE will deliver hydro and wind power generated in Canada and the US to the New York market Environmental benefits for the region are significant as SOx, NOx, mercury, and CO2 emissions fall Through its 40+ year life, CHPE will ensure access to reliable, low-cost electricity for New York consumers, businesses and industries Establishment of a $117M Habitat Enhancement, Restoration, and Research/Habitat Improvement Project Trust for Lake Champlain, Hudson, Harlem and East Rivers SO 2 NO X CO 2 Reduction700 tons per year 1,000 tons per year 3.7MM tons per year % of NY Market 2.5%5%9% London Economics International, LLC July

8 Champlain Hudson Power Express Broad Support Twenty members of New York Congressional delegation NY State and NY City Economic Development Corporations Local chapters of the International Union of Operating Engineers and Laborers International Union of North America NY Energy Consumers Council Coalition Helping Organize a Kleaner Environment Three daily newspapers editorialized in support of the project New York League of Conservation Voters 8

9 Champlain Hudson Power Express Broad Support – PSC Article VII Siting Filed Joint Proposal of Settlement with the PSC Administrative Law Judges on February 24 th, months of confidential negotiations with all interested interveners and parties in the Article VII siting process Seven State Agencies signed Staff of the PSC Department of Environmental Conservation Department of State Department of Transportation Department of Agriculture and Markets Office of Parks, Recreation and Historic Preservation Adirondack Park Agency City of New York and City of Yonkers Signed Riverkeeper, Scenic Hudson and Trout Unlimited Signed 9

10 Champlain Hudson Power Express Significant Public Outreach Transmission Developers Inc (Mar 2010) Albany; Scotia; Plattsburgh; Yonkers; Kingston Department of Energy (July 2010) Yonkers; NYC; Kingston; Albany; Glens Falls; Plattsburgh NYS Public Service Commission (Nov 2010) Yonkers; Kingston; Schenectady; Whitehall; Plattsburgh NYS Public Service Commission (April 2012) Whitehall; Catskill; Ravena; Schenectady; Haverstraw; Astoria 10

11 Champlain Hudson Power Express Website Department of Energy (DOE) EIS Website NYS Public Service Commission Article VII 10-T-0139 FERC ER Champlain Hudson Power Express Significant Public Outreach

12 12 Champlain Hudson Power Express Significant Public Outreach

13 Champlain Hudson Power Express Financing by Private Sector TDI Acquired by The Blackstone Group in 2010 New York based asset management firm, $190 Billion under management Invests on behalf of 23 million public pensioners in the U.S. Providing all development and project equity capital $30M in development spent to date Financing Debt from shippers and export development banks Equity from Blackstone 13

14 NY State Regulatory Process Presidential Permit Army Corps of Engineers Permitting CZMA Consistency Determination MarAugDec JanJulyAugJulyFeb Feb. 28, 2012 Application Updated To Reflect Joint Proposal Filing Updated To Reflect Conditions In CZMA Ruling Presidential Permit Application Filed With DOE g Public Scoping Meetings Completed Public Comment Period Closed Dec Clean Water Act 404 Dredge And Fill/Rivers and Harbors Act, Section 10 Permit Applications Filed With Army Corps July Filing Updated To Reflect Conditions In CZMA Ruling Feb Feb. 28, 2012 Application Updated To Reflect Joint Proposal June New York State Issues Conditional Coastal Zone Consistency Ruling Under The Federal Coastal Zone Management Act New York State Article VII Filing Jun NY State Issues Conditional Coastal Zone Consistency Ruling Under The Federal Coastal Zone Management Act New York State Completeness Determination Nov NYS Article VII Negotiated Settlement Discussions with Parties Begin Public Scoping Report Complete Feb Feb. 24, 2012 Joint Proposal of Settlement filed with NY State PSC Blackstone investment in TDI January 25, 2010 Champlain Hudson Power Express Moving Steadily Through the Regulatory Process 14

15 NY State Regulatory Process Presidential Permit Army Corps of Engineers Permitting Sep Jun DEIS Issued For Public Comment Mar Consultation TDI Nov Apr ALJ Recommendation To PSC Commission Dec Environmental Compatibility And Public Need Certificate Issued Comments Draft Environmental Impact Statement (DEIS) Comment Final EIS Governmental Review 6 Public Hearings For Comments On Joint Proposal Champlain Hudson Power Express Moving Steadily Through the Regulatory Process Mar Mar 30, 2012 DOE noticed planned reopening of scoping process 15 ALJ hearing on Issues Jul DEIS Issued For Governmental Review Sep Dec Final EIS Issued Mar Secretary Of Defense And Secretary Of State Approval May Presidential Permit Issued June Mar 404 Permit And Section 10 Permits Issued June Environmental Management and Compliance Plan Filed May

16 Engineering, Procurement and Construction Transmission Service Agreements Finance May Dec Jun TSA Negotiations commence SepDec Project Finance Negotiations EPC RFP Issued Sep Q1 Champlain Hudson Power Express Commercialization Schedule 16 EPC Negotiation EPC Contract Signed Dec Notice to Proceed Detailed in- water and land survey Sep-Nov TSA Execution Mar Open Season Auction FERC Report Q1 TSA Conditions Precedent Achieved Finance Agreement Execution

17 17 Champlain Hudson Power Express Happy to answer your Questions


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