www.millenniumpipeline.com

Millennium  Pipeline  Company,  LLC  Response  to  New  York  State  Energy  Highway  RFI  

www.millenniumpipeline.com

O ne Blue H ill Plaza, 7th F loor Post O ffic e Box 1565

Pearl River, N Y 10965 845.620.1300 V o ic e | 845.620.1320 F ax

   Respondent  Information:  

Millennium  Pipeline,  LLC  One  Blue  Hill  Plaza,  7th  Floor  Pearl  River,  NY    10965  

 Primary  Contact:  

    Stan  Brownell       VP  Business  Development  and  Marketing       Phone:  (845)  620-­‐0147       Email:  Brownell@MillenniumPipeline.com    Millennium  Pipeline,  LLC  (Millennium)  owns  and  operates  a  182-­‐mile  interstate  natural  gas  pipeline  regulated  by  the  Federal  Energy  Regulatory  Commission  (FERC)  that  runs  from  New  York's  Southern  Tier  to  the  Lower  Hudson  Valley  (Fig.  1).  Millennium  is  owned  by  a  partnership  that  includes  NiSource,  DTE  and  National  Grid  and  was  originally  constructed  to  provide  transportation  services  for  Consolidated  Edison,  Orange  and  Rockland,  Central  Hudson,  National  Grid  and  Columbia  Gas  Transmission.  Millennium  is  exclusively  in  the  business  of  natural  gas  transportation.    The  Millennium  pipeline  went  into  service  on  December  22,  2008.  Millennium  continues  to  expand  its  system  capabilities  and  in  the  summer  of  2011  Millennium  filed  an  application  with  FERC  to  construct  a  new  compressor  station  in  Orange  County  New  York  to  help  meet  the  growing  demand  for  clean  energy  in  the  Northeast.  Plans  for  a  second  compressor  station  in  Delaware  County  are  currently  underway.    Project  Description:    Millennium’s  pipeline  provides  the  Hudson  Valley  region  with  access  to  natural  gas  supplies  from  various  regions,  including  direct  access  to  the  prolific  Marcellus  and  Utica  shale  regions.  As  such,  Millennium  is  in  the  unique  position  of  being  able  to  provide  transportation  services  immediately  that  would  deliver  clean  burning  natural  gas  supplies  to  support  existing  power  plant  expansion  and/or  repowering  along  with  supplies  for  newly  constructed  generation  facilities.  Millennium  started  providing  service  to  the  Bowline  power  plant  with  over  100  MMcf/d  of  supply  in  July  of  2010  and  has  entered  into  an  agreement  with  Competitive  Power  Ventures  (CPV)  to  construct  a  seven  mile,  16”  lateral  to  provide  the  proposed  650  MW  CPV  Valley  Energy  Center  generation  plant  in  Wawayanda,  NY  with  up  to  113  MMcf/d  of  supply  (Fig.2).  Providing  service  to  these  two  plants  has  begun  the  step  towards  the  future  in  assisting  the  State  of  New  York  in  its  effort  to  reduce  the  emission  of  pollutants  while  increasing  the  reliability  of  electric  service  to  Zones  G,  H  and  I.  Additionally,  Millennium  is  in  the  unique  position  to  easily  expand  its  system  in  Zone  G,  (Fig.  3)  to  provide  the  natural  gas  infrastructure  necessary  to  support  electric  generation  growth  to  meet  the  increased  electric  demand  in  Zones  G,  H,  I,  J  and  K.    

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The  New  York  State  Transmission  Assessment  and  Reliability  Study  (STARS)  report  issued  on  April  30,  2012  provides  analysis  and  support  for  the  upgrading  of  particular  electric  transmission  paths  that  would  alleviate  electric  transmission  congestion  and  provide  increased  electric  transmission  capacity  to  the  New  York  City  area,  which  is  one-­‐third  of  the  state’s  electric  load.  The  primary  electric  transmission  paths  identified  in  the  STARS  study  are  shown  in  Figure  4  (the  Millennium  system  has  been  included  on  this  figure  for  illustrative  purposes).  As  shown,  the  Millennium  pipeline  system  aligns  with  several  of  the  identified  electric  transmission  paths  identified  for  potential  upgrades.    Figure  5  highlights  two  specific  proposed  electric  transmission  upgrades:  Rock  Tavern,  NY  to  Ramapo,  NY  and  Pleasant  Valley,  NY  to  Sprain  Brook,  NY,  both  presented  in  yellow.  The  345  KV  electric  transmission  line  that  connects  these  two  potential  upgraded  electric  transmission  lines  by  way  of  the  Indian  Point  Nuclear  facility  is  presented  in  red.  The  Millennium  pipeline  is  presented  in  green.    As  shown,  the  Rock  Tavern  electric  transmission  line  and  the  Indian  Point  connector  transmission  line  both  cross  the  Millennium  pipeline.  Millennium  is  prepared  to  develop  natural  gas  transmission  infrastructure  in  this  area  to  support  new  generation  facilities.    Millennium  has  determined  that  it  can  expand  its  system  to  receive  natural  gas  supplies  from  interconnecting  natural  gas  pipelines  as  well  as  directly  connected  gathering  systems  in  either  New  York  or  Pennsylvania  in  such  a  manner  as  to  be  able  to  deliver  an  incremental  supply  of  approximately  500  MMcf/d  into  the  Hudson  Valley  location  represented  by  the  circled  region  in  Figure  6.  This  amount  of  gas  supply  is  sufficient  to  support  new  electric  generation  facilities  with  a  capacity  of  more  than  3,000  MW.  Any  generation  facility  constructed  within  the  target  zone  shown  on  Figure  6  is  easily  connected  and  supplied  by  the  Millennium  mainline  system.  The  345  KV  electric  transmission  line  that  crosses  Millennium  and  connects  to  the  Indian  Point  Nuclear  Power  Plant  is  only  12.5  miles  long  and  Millennium  could  easily  construct  a  lateral  in  the  existing  electric  transmission  corridor  to  supply  any  generation  located  along  this  route.      Summary:    Although  Millennium  is  not  an  electric  generation  or  transmission  company,  it  is  in  a  unique  position  to  provide  the  natural  gas  transmission  infrastructure  necessary  to  deliver  natural  gas,  the  low  cost,  clean  burning  fuel  that  can  and  should  support  the  addition  of  new  electric  generation  facilities  in  the    Hudson  Valley,  which  are  necessary  to  meet  the  growing  demand  in  the  New  York  City  area.  The  increase  in  electricity  demand,  coupled  with  the  possible  closing  of  some  coal  and  oil-­‐fueled  electric  generation  plants  due  to  the  potential  increased  cost  of  environmental  compliance,  along  with  the  fact  that  42  percent  of  the  current  electric  generation  plants  are  more  than  40  years  old,  suggests  that  the  addition  of  new  electric  generation  facilities  is  paramount.      The  construction  of  new  natural  gas  infrastructure  and  new  electric  generation  facilities  will  create  local  jobs  and  in  turn  stimulate  the  local  economies.  The  use  of  natural  gas  as  fuel  for  these  electric  generation  plants  will  lower  electricity  costs  and  the  emission  of  pollutants  while  providing  the  necessary  electricity  to  meet  the  growing  demand.  Additionally,  the  ability  to  power  new  electric  generation  facilities  in  the  lower  Hudson  Valley  with  natural  gas  opens  up  an  avenue  for  the  replacement  of  any  electric  generation  capacity  loss  that  could  be  experienced  in  the  event  that  the  Indian  Point  Nuclear  Facility  is  retired.  In  short,  Millennium  stands  ready  to  provide  the  New  York  infrastructure,  with  the  New  York  supplies  for  the  generation  of  New  York  electricity.  

Millennium Pipeline Footprint Figure 1

Proximity of CPV Valley to Pipeline Figure 2

Millennium Pipeline Infrastructure Support Area

Primary Power Plant Development Area

Secondary Power Plant Development Area

Figure 3

Figure 4

STARS Preliminary Transmission Paths

Transmission Upgrades Re: Indian Point Figure 5

New Generation Facility Target Zone Figure 6