Caithness Energy Sues PSEG for Blocking Long Island Gas-Fired Plant

Caithness Energy, a privately held company that specializes in buying or building (and operating) renewable energy and natural gas-fired power plants, owns a 350 megawatt natgas-fired power plant in Yaphank, NY–on Long Island. For more than four years Caithness has had a plan to build a second natgas-fired plant next to their first plant. The original plan was for a 750 MW plant, later scaled back to 600 MW. Local leaders in Brookhaven Town in which the existing and proposed power plant projects sit have been against the plan for a new power plant, passing restrictions in 2015 that tied the hands of Caithness, making the project impossible to build. But in July, the board reversed course and voted to repeal the 2015 restriction that limits the type of equipment Caithness can use in building the plant, clearing the way for the project (see Long Island Town Votes to Allow New Gas-Fired Elec Plant). However, the path is still not cleared. Newark, NJ-based PSEG (Public Service Enterprise Group), which provides electricity to Long Island, told the Long Island Power Authority (LIPA) that the Caithness plant is not needed. It’s a case of one competitor unfairly trying to block another–according to Caithness, which has just filed a lawsuit against PSEG saying it has suffered “hundreds of millions of dollars of harm” because of PSEG’s actions to block the project. Looks like this one is going to get NY nasty…

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