PROPOSED STIPULATION 4

PROPOSED STIPULATION NO. 4: PROJECT AND FUEL RELIABILITY AND MITIGATION ALTERNATIVES

1. The Application to be submitted will include an analysis of the reliability of fuel supply for both natural gas and No. 2 distillate fuel oil, and facility fuel needs including capacity and system impacts:

(a) A detailed description of all natural gas interconnection facilities including pipeline route, diameter, length, operating pressure and the need for on-site compression facilities;

(b) An analysis demonstrating that there will be sufficient natural gas supply and gas transmission capacity both interstate and intrastate capacity to support the requirements of the Project;

(d) An identification of the nature and extent of the natural gas capacity and transportation service as firm, interruptible, or both; and

(e) An evaluation of the potential impacts of the Project on the gas distribution system of the Local Distribution Company (LDC), including description of any upgrades to the LDC pipeline system that may be necessary to meet the requirements of the project

FUEL OIL

2. The Application will contain an evaluation of fuel oil pertaining to the following:

(a) An estimate of the fuel oil requirements of the project, and a description of the fuel oil supply and infrastructure that supports the project's oil requirements;

(b) A description of any fuel oil storage tank(s), including the storage capacity of the tank(s) and a description of any proposed secondary containment structures proposed to be constructed around the tank and off loading areas and any other facilities or measures proposed to prevent, contain or clean up oil spills;

(c) A copy of the existing Spill Prevention, Countermeasures and Control (SPCC) Plan, per 40CFR 112, for the existing on-site oil storage facility;

(d) If the Project is proposed to store more than 400,000 gallons of fuel oil the application will contain a discussion of the following regulations and describe how the Project will comply with them: Major Petroleum Facility License pursuant to Article 12 of the Navigation Law, section 174 (licenses), 17 NYCRR part 30 (Oil Spill Prevention and Control- Licensing of Major Facilities), 6 NYCRR Part 610 (Certification of Onshore Major Facilities), and 6 NYCRR Parts 612 through 614 (Petroleum Bulk Storage Regulations).

SIMULATION ANALYSIS

3. The Application will include the following analyses, which will be developed using MAPS, PROMOD or a similar modeling tool:

a) Estimated statewide levels of SO2, NOx and CO2 emissions, both with, and without the TGE Facility; b) Estimated minimum, maximum, and average annual spot prices representative of Areas "A", "F", and "J", of the New York Control Area, both with and without the Project; and c) Estimated capacity factor for the Project.

4. The analysis will assume the following plants are in service: all existing electric generating facilities, and those electric generating facilities that (a) have been proposed in Article X applications and (b) have received a notification 30-days prior to the filing of the Project and that their application is in compliance with Article X.

5. The applicant will consult with the DPS Staff with the goal of agreeing to a mutually acceptable input data set, including modeling for the applicants proposed facility, to be used in the above discussed Simulation analyses.

RELIABILITY OF PREFERRED POWER SOURCE

6. The Application will contain an assessment, with supporting details, of the reliability and feasibility of the preferred source(s) of power. As part of the supporting details, reliability data for the power block will be provided to the extent that they are publicly available. If the equipment does not have an operating history, estimates of operating reliability with the rationale will be provided.

PROJECT MITIGATION ALTERNATIVES

7. The Application will address the use of the following alternatives:

(a) No-action alternative; (b) Cooling systems - including once-through, evaporative and air cooling, and giving qualitative consideration to land requirements, visibility and aesthetics, water demand and consumptive losses, incremental water discharge, water treatment requirements and quality, aquatic biology, thermal impacts, potential for noise generation, public health, fogging and icing, and system efficiency. (c) Fuel selection - a comparative evaluation of firing natural gas exclusively and using backup oil during periods of curtailment, giving qualitative consideration to project technology and viability, reliability, air quality, water use, and resource protection; (d) Peaking capability, giving qualitative consideration to project technology and viability, reliability, air quality, water use, and resource protection; and (e) Air pollution control technologies, by providing the BACT and LAER analyses required for NYSDEC permit applications.

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