August 27, 2003 - Not too long before the great Blackout of 2003, the Long Island Power Authority had issued a Request for Proposals for new generation sources to meet Long Island’s future energy requirements. The Center for Management Analysis (CMA) at the College of Management on the C.W. Post Campus of Long Island University in Brookville, NY, however, announced today that this can be best achieved via existing project proposals.

Currently on the table are two proposals that, if combined, promise to meet the Island’s energy needs - and both have already completed the difficult New York State Article X permitting process. "These two proposals together, the 250 MW Spagnoli Road Project sponsored by KeySpan, and the 580 MW Brookhaven Project sponsored by American National Power (ANP), appear to offer the most practical and realistic choice for meeting future energy demands on Long Island," said Dr. Matthew C. Cordaro, Director of the CMA.

The CMA’s latest report, "Link KeySpan and ANP Projects: Best Route to Long Term Energy Supply for Long Island," reviews the available options and the likelihood that new outside sources could offer proposals that are competitive with the Spagnoli Road and Brookhaven projects.

Long Island Power Authority (LIPA) has expressed concern that another KeySpan project would undermine the need for more competition in the generation of electricity on Long Island and that the ANP project suffers from uncertainty about natural gas supply and the extent of electric transmission reinforcements necessary. The CMA report concludes that these concerns can be successfully addressed if the projects are developed as a partnership between KeySpan and ANP. Further, it recommends that LIPA serve as a catalyst for the formation of such a partnership.

The report also highlights other advantages for jointly administering these projects, including the sequencing of construction schedules to coincide with load growth on Long Island and the coordination of maintenance and manpower requirements. With a partnership, the Spagnoli Plant could be operational by 2005 and the Brookhaven Plant by 2006-7.

The CMA report points out that this plan presents the fastest route to securing an energy supply that could meet Long Island’s growing needs and prepare the region to better deal with an incident such as the Blackout of 2003.

The report also warns that, without a committed power purchase agreement from LIPA for the Spagnoli Road and Brookhaven plants, these projects could be doomed to failure, wasting the many millions of dollars already invested along with the thousands of man hours expended by New York State regulatory agencies.

The Center for Management Analysis (CMA) is an academically based organization designed to serve the diverse needs of government, business and the community. Its purpose is to provide a climate for research, consultation and problem solving by uniting educators and practitioners in addressing public issues through reasoned dialogue and analysis. The CMA’s efforts to enhance the quality of public service and apply the resources of academia in confronting real world problems and challenges are available to government, business and the community at large.

For more information or for a copy of this report, contact Matthew C. Cordaro, Ph.D.,
Director, Center for Management Analysis at (516) 299-3920 or mcsqd22@aol.com.