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Major Energy Project Begins to Address Indian Point’s Future Closure

The first dirt was turned on the 1,100-megawatt Cricket Valley Energy Center project on Wednesday. The first dirt was turned on the 1,100-megawatt Cricket Valley Energy Center project on Wednesday.

DOVER, NY—Work officially began on Wednesday on a nearly $1.6-billion energy project in Dutchess County that begins to address the impact of the impending closure of the Indian Point nuclear power plants in Buchanan, NY and the significant energy those plants generate for New York City and Westchester County.

Cricket Valley Energy, an affiliate of Advanced Power Services Inc. of Boston, held a groundbreaking ceremony at the Cricket Valley Energy Center project site for its 1,100-megawatt combined cycle natural gas-fired electric generating facility. The project is estimated to cost $1.58 billion to complete and will create approximately 1,100 jobs during the two-year construction phase.

The project, when online in 2020, will have the capacity to supply energy to 1 million homes across New York State. The plant will connect with the adjacent Iroquois natural gas pipeline and will sell energy and ancillary services to the New York Independent System Operator energy market with an interconnection through Con Edison’s nearby 345 kV transmission line.

The construction of the Cricket Valley Energy Center and the more than $900-million, 720-megawatt CPV Valley Energy Center nearing completion in Wawayanda, NY in Orange County have taken on significant importance to the lower New York State economy since Entergy Inc. announced in January it will be shuttering its Indian Point 2 and 3 nuclear reactors in April 2020 and April 2021 respectively. Indian Point produces more than 2,000 megawatts of power that equals 25% of the electric power needs of New York City and Westchester County. Indian Point supplies enough energy to light 2 million homes.

Robert E. De Meyere, development project manager for Cricket Valley Energy, said the start of construction of the Cricket Valley Energy Center is very important to the investors in the project as well as New York State because the state must replace the impending loss of the 2,000 megawatts of power the Indian Point Energy Center currently provides. “With the 1,100 megawatts (here), you have half of it taken care of right away,” he said.

Cricket Valley Energy originally filed plans for a special permit with the Town of Dover in November 2009.

“Together we are transforming a dormant industrial site into a state-of-the-art facility—one that provides smart American energy, local jobs and tax revenue for the community of Dover,” De Meyere said. “This has been no easy feat, and I’m proud to share this moment with many of those who helped make it possible.”

Demolition of approximately 14 buildings at the long vacant industrial site has been completed. De Meyere said that construction would begin in earnest in July.

Advanced Power CEO Thomas Spang said at the groundbreaking event, “Cricket Valley Energy and Advanced Power intend to be long-term and good neighbors to those here in Dutchess County. We will continue to manage this project on behalf of the investors both during construction and operation, and we very much look forward to continuing this great working relationship we have built together.”

In January of this year, Cricket Valley Energy announced it had closed on the financing for the plant. The investors in the project that are providing $709 million in equity commitments, include: JERA Co., Inc. (half-owned by each of Chubu Electric Power Company and TEPCO Fuel & Power); TIAA Investments; Advanced Power AG; BlackRock Financial Management Inc.; Development Bank of Japan, Inc. and NongHyup Financial Group (under the direction of the National Agricultural Cooperative Federation of Korea).

GE Energy Financial Services, Inc.; BNP Paribas; Crédit Agricole Corporate and Investment Bank; Bank of America, N.A.; CIT BANK, N.A; Industrial Bank of Korea; Shinhan Bank, New York Branch; Industrial and Commercial Bank of China Limited, New York Branch; NongHyup Financial Group; National Australia Bank Limited; Siemens Financial Services, Inc. and Sumitomo Mitsui Banking Corporation are providing $875 million in funded debt facilities for the project.

Bechtel will undertake the engineering, procurement, and construction of the energy center. The facility is scheduled for completion in the first quarter of 2020. Advanced Power AG will be the construction and asset manager for the project.

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