Bowline Point power plant OK'd by state

By LAURA INCALCATERRA - THE JOURNAL NEWS - (Original publication: March 26, 2002)

HAVERSTRAW - Mirant New York's application to build a third power plant at Bowline Point was approved by the state yesterday, but the company could not say when or if the $500 million project would ever materialize. Few details about the state Siting Board's ruling were available yesterday, but more information will come when a written order is issued in the next few days, a board spokesman said.

The plant would use natural gas and oil to produce 750 megawatts of electricity. One megawatt is enough to power about 1,000 homes. The new unit would be built on about 25 acres near two other Mirant plants along the Hudson River.

Mark Lynch, president and chief executive officer for Mirant America's Northeast Region, said the construction and operation of the new unit would have minimal impact on the river because it would use a hybrid cooling system and a filtering system to protect marine life. That view was disputed by David Gordon, senior attorney with the Riverkeeper environmental advocacy organization. He criticized the state Department of Environmental Conservation for failing to require the dry cooling method be used to drastically reduce the amount of water to be drawn from the river.

He also said the DEC was wrong in determining that the filtering system would adequately protect marine life when water was drawn from the river to be used in the cooling process. He said the process would kill an excess of marine life.

The DEC's recommendations on the project were submitted to the Siting Board, which used them to make a final decision on the plant. DEC spokeswoman Jennifer Post said the department was fully committed "to protecting and restoring the Hudson River." Post said DEC experts determined that Mirant's cooling system was adequate.

Haverstraw Supervisor Howard Phillips and North Rockland School Superintendent Dodge Watkins praised the approval yesterday. Phillips said he hoped Mirant would negotiate a fair tax assessment on the new and two existing plants. The town and school district have been engaged in a protracted legal battle with Mirant over the assessment of the Bowline plants. Even with yesterday's approval, the future of the third plant is uncertain.

In December, Mirant Corp., Mirant New York's parent company, announced massive spending cuts and the postponement or cancellation of any project not scheduled for completion by August 2003. The announcement came after Moody's Investors  Service downgraded the company's rating to "junk." If the project had been approved in August, it would have been ready for operation by August 2003, the cutoff period Fuller announced. Louis Friscoe, director of environmental and external affairs for the company, has said it is too soon to say whether it will be canceled. A Mirant spokesman said yesterday it is up to the board of directors to decide if the project will move forward.

Also yesterday, a press release from the Siting Board said Mirant would make a financial contribution to the local water utility. David Flanagan, a spokesman for the Siting Board, said Mirant would pay more than $3 million to United Water "for distribution, storage and supply improvements." The money is more than what would be needed to improve the system toaccomodate the third power plant, Flanagan said.

He referred a request for more information about the agreement to Mirant. The company's spokesman said he did not have details.