Millennium Gets Nod On ConEd Corridor Route
A hotly contested route alternative that calls for the
Canada-to-New York Millennium Pipeline to be built within an
electric transmission system's right-of-way (ROW) in Westchester
County, NY, is a "viable option" provided state regulators and the
pipeline can work out the construction details, according to a
supplemental draft environmental impact statement (DEIS) issued by
FERC staff last week.
FERC staff's suggested route option would move Millennium from a
public highway corridor (U.S. Route 9 and State Route 9A) parallel
to an existing power line corridor of Consolidated Edison Co. of
New York (ConEd) for approximately seven miles in Westchester
County, staff said.
Both ConEd and the New York Public Service Commission (NYPSC)
objected to the siting of Millennium in the power line corridor,
saying that electric service to millions of New York residents
could be disrupted during construction and after the natural gas
pipeline was in place. This prompted Millennium to propose a change
in its route last June to incorporate the Route 9-9A route rather
than the ConEd ROW.
But FERC staff said last week they thought routing Millennium
within the ConEd ROW was doable. "We believe that pipeline
placement on only one side and at a greater distance from the power
line may help alleviate many concerns about construction near
electric lines and towers," it noted in the supplemental DEIS.
If New York regulators can come to an understanding with
Millennium on the construction activities adjacent to portions of
the power line corridor, "then this alternative would help minimize
impacts on several communities that had opposed the 9/9-A route,"
Millennium Chairman David Pentzien said he agreed that FERC
staff's suggested alternative was a "viable routing option" for the
pipeline project, and would "reach out" to New York regulators
immediately to discuss the routing option and other findings of the
As for Millennium's proposed Route 9-9A proposal, the Commission
staff said that while it would result in "short-term, locally
significant unavoidable adverse environmental impact, it is an
appropriate route for the proposed deliveries to [the pipeline's
terminus in] Mount Vernon, NY."
The Millennium pipeline, which was proposed in December 1997,
would bring about 714 MMcf/d of natural gas from Canada under Lake
Erie to the New York metropolitan area. Millennium still must get a
final environmental nod and certificate from FERC before it can
begin construction of the proposed 442-mile pipeline. Sponsors of
the project are Columbia Gas Transmission, TransCanada PipeLines,
Westcoast Energy and MCN Energy Group.
Long Island Pipe Projects Duke It Out
The battle for a new pipeline to serve Long Island, NY, heated
up this week as companies announced significant market support for
two competing projects. Tennessee Gas Pipeline announced that its
Connecticut-Long Island (CT-LI) Lateral Project attracted requests
for 1.6 Bcf/d of firm transportation capacity, while Duke Energy
Gas Transmission and partner KeySpan said their Islander East
pipeline drew 1.2 Bcf/d in shipper requests.
"The open season results reinforce market support for additional
capacity to these regions," said Tennessee President Stephen C.
Beasley. Tennessee's project, which is expected to add at least
450,000 Dth/d of new firm capacity, would provide access to all
interstate natural gas pipelines in the New England region and
would serve multiple LDCs and new power plants in Connecticut and
New York. The proposed terminus of the lateral is in Suffolk County
on eastern Long Island.
Beasley said the CT-LI Lateral received requests from utility
companies, marketers and power generation developers. "While the
majority of the receipts were from the Dracut, we were also pleased
to see a significant interest in Niagara and Gulf Coast points as
well," Beasley added.
Pat Whitty, managing director of Islander East, downplayed the
open season results. "[N]oms are cheap," he said. "Noms can be got
from just about anybody. They are non-binding. I think in the old
days pipes used to put out press releases on their nominations, but
they really are meaningless until you get people to sign up."
Whitty said Islander East would be built specifically for two or
three customers in contrast to the 14 companies that put in
requests during its open season. "Some of these other people are
just people that you get every time you have an open season," he
said. "They don't want to miss out on an opportunity so they put it
in because it is nonbinding. The second I send them a firm service
agreement or a precedent agreement that will quickly weed them
Nevertheless, Whitty said he was pleased that the project drew
the interest of so many, including LDCs, power generators and
marketers. "But I think the real market as we see it is the LDC
load growth, specifically KeySpan there on Long Island, along with
probably one or two power generators. I think there's only enough
room for that type of project."
The proposed 40-mile Islander East line is expected to carry
250,000 Dth/d from an interconnection with DEGT's Algonquin Gas
Transmission system in Connecticut to markets on Long Island.
"We're sized at 250 MMcf/d and that's probably appropriate,"
said Whitty. "If we see that more than 250 MMcf/d needs to be done
out of the 1.2 Bcf/d that we got, we can easily size it at 400
MMcf/d. That's one of the advantages that Islander East has over
Tennessee. [Ours] is a much smaller project. It is a 40-mile
pipeline to connect Algonquin into the KeySpan facilities on Long
Island. If we need to do more than 250 MMcf/d we just add
compression. It's easily expandable."
Tennessee's project comes off of its 300 leg, which is farther
north than Islander East's tie-in at Algonquin, he noted. "They
need more like 400 MMcf/d to 450 MMcf/d to make theirs happen at a
market rate equal to Islander East," said Whitty. "That's one big
advantage that we have." With a capital cost of $160 million,
Islander East plans to charge a max rate of 27 cents/Dth.
Islander East also has KeySpan, the LDC on Long Island, as a
part owner. "Right now [we have the advantage]," said Whitty. "The
KeySpan load is the primary driver." Nevertheless, Whitty admitted
KeySpan still has not signed a contract for any firm space on
Islander East. "But I think the fact that they are a partner in the
project speaks volumes." He expects KeySpan to take a significant
portion of the Islander East capacity. The remainder probably will
be taken by power plants.
There are multiple power plants being considered for Long
Island. But two may be further along than the others. American
National Power is considering building a 500 MW facility at
Brookhaven, and AES is planning a plant at Calverton. PPL is
planning several peaking plants near Smithtown. Florida Power and
Light also is looking into power plant construction, as is Calpine.
"Anybody who is a power player is looking to build a plant on
Long Island," said Whitty. Most of the plants are expected to be
online in 2004. "The big question is how much new power can the
Island support," Whitty noted. "A lot of people think that one 500
MW combined cycle plant would be all it could support. Others think
maybe 1,000 MW are doable. An amount that is somewhere in between
probably will be built on the Island. I feel very confident we are
going to be building this pipe."
Both Islander East and Tennessee's Connecticut-Long Island pipe
plan to be in service by November 2003.