State appears likely to approve Cayuga power plant conversion to natural gas

Teresa Peltier
September 27, 2013

It now appears more likely that the state will approve the Cayuga power plant’s proposed conversion to natural gas.

In a letter sent Tuesday to the Cayuga Operating Company and NYSEG, the state asked for a revised repowering proposal:

“At the Commission Session held on September 19, 2013, Department of Public Service Staff reported that its review of the Cayuga repowering proposal and NYSEG’s report indicated that a revised repowering solution could be consistent with the best interests of the public and ratepayers.

PLEASE TAKE NOTICE that Cayuga and NYSEG should file, within 30 days of the date of this Notice, a revised proposal for the repowering of the Cayuga station that meets the reliability, economic development, and environmental benefits identified in the January order, at the least cost to ratepayers.”

In their original proposal, Cayuga’s operators outlined four options for converting from coal to natural gas with price tags between 60 and $370 million. NYSEG recommended closure of the plant and increased transmission.