First in Service First in Value Hubert M. Bianco Superintendent Freeport Electric First in Service First in Value

Freeport Generation Project Hubert M. Bianco Superintendent Freeport Generation Project

Freeport Generating Project Project Description Hubert M. Bianco Superintendent Freeport Generating Project Project Description Install Two Combustion Turbines • One owned by Freeport One owned by Developer • Fuel Natural Gas with Backup of Low Sulfur Fuel • Output – 44-55 MW • Retire Two Fiat Diesels • Keep Existing Combustion Turbine for Capacity and Emergency Purposes

Freeport Generating Project Hubert M. Bianco Superintendent Freeport Generating Project • Meet Freeport Electric’s Installed Capacity Requirements for Long island • Eliminate deficiency payments for Capacity • Replace older diesel generation at PP#2 • Reduce Emissions • Moderate energy costs during peak load periods • Improve Operating Capability • Provide capacity for future load and economic growth

Freeport Generating Project Developer Project Purpose Hubert M. Bianco Superintendent Freeport Generating Project Developer Project Purpose • Supply Power Utilizing Environmentally Competitive Technology • Produce Power at Market Competitive Prices • Develop Project with High Level of Reliability and Operating Flexibility to Meet Regional Long Island Demand • Create Generation Resource Base to Support Market Objectives

Freeport Generating Project Key Environmental Permits and Approvals Hubert M. Bianco Superintendent Freeport Generating Project Key Environmental Permits and Approvals • New York State Environmental Quality Review (SEQR) • New York State Department of Environmental Conservation Air Permit • Natural Gas Pipeline Route (New York State Public Service Commission – Article VII Review)

Freeport Generating Project Hubert M. Bianco Superintendent Freeport Generating Project

Freeport Generating Project Air Quality Improvements Hubert M. Bianco Superintendent Freeport Generating Project Air Quality Improvements • Retirement of two existing, older, Fiat diesel generators • Installation of two efficient and clean firing GE LM6000 combustion turbines • Use of clean burning fuels to minimize emissions of sulfur dioxide (SO2) and particulate (PM10) • Natural gas as primary fuel • Low sulfur (0.05%) distillate oil as backup fuel if gas supply is interrupted

Air Quality Improvements Hubert M. Bianco Superintendent Air Quality Improvements • Use of state-of-the art emissions control systems • Selective Catalyst Reduction (SCR) to control nitrogen oxides (NOx) • Oxidation catalyst to control carbon monoxide (CO) • Use of higher stacks (170 feet above local ground level) near Good Engineering Practice stack height defined by U.S. Environmental Protection Agency (EPA) will minimize local impacts of emissions

Freeport Generating Project Air Quality Improvements Hubert M. Bianco Superintendent Freeport Generating Project Air Quality Improvements • Maximum predicted impacts of proposed LM6000 combustion turbines considered insignificant under EPA criteria • Potential to improve existing air quality on Long island through the displacement of power generation from existing, older technology.

Freeport Generating Project Emissions Controls Hubert M. Bianco Superintendent Freeport Generating Project Emissions Controls • New combustion turbines at Power Plant #2 will use state-of-the-art emissions control technology, good combustion practices, and clean burning fuel • New combustion turbines will achieve significantly lower emission rates relative to existing, older technology power plants • Advanced technologies (Selective Catalytic Reduction and water injection) will be used to control nitrogen oxide (NOx) emissions • SCR control technology injects aqueous ammonia (solution of 81% water and 19% ammonia) to control NOx emissions