The Dunkirk Project – Project Update

On October 23, 2014, The New York State Public Service Commission (NYPSC) held public statement hearings and invited public comments on the request of the Dunkirk Gas Corporation (DGC) to construct an 11.3‑mile 16‑inch natural gas pipeline from the Tennessee Gas Transmission Pipeline Mainline in the Town of Pomfret to the Dunkirk Generating Station. This pipeline is absolutely essential to the project. DGC has filed a complete and comprehensive Article VII application to the NYPSC for the pipeline project and is awaiting PSC approval. DGC anticipates up to nine months to complete the project after approval (certification). DGC has also issued Requests for Proposals for interested parties to build, own and operate the pipeline, and will receive bidder-proposed schedules.

At the same time, however, the PSC is considering the application of National Fuel Corporation (NFC) to build, own and operate a pipeline on an alternate route. Due to the interjection of National Fuel’s competing pipeline proposal and the resulting uncertainty, it is not prudent for Dunkirk Power to make the planned substantial capital investments in the project until the pipeline route is selected. Additionally, if National Fuel’s pipeline route is selected, additional time will be required to determine the costs of doing business on a sole source basis with National Fuel on its proposed route.

The boiler modifications for the Dunkirk project may take as long as 16 months; Dunkirk Power is completing its boiler modification contract including options for limited notice to proceed and additional costs to accelerate the 16-month schedule. However, until there is greater clarity on approval and receipt of an Article VII certificate, the route of the pipeline, and the costs on the National Fuel route if approved, Dunkirk Power is not in a position to put substantial additional capital investment at risk or to commit to an expected commercial operation date.

You may comment to support the Dunkirk Pipeline by e‑mail, mail or delivery addressed to Hon. Kathleen H. Burgess, Secretary. The e‑mail address is secretary@dps.ny.gov. The address for mail or delivery is Public Service Commission, Three Empire State Plaza, Albany, New York 12223‑1350. Comments should refer to "Case 14‑T‑0360 - Dunkirk Gas Corporation - Gas Pipeline." All comments will become part of the record and reported to the Commission for its consideration. All submitted comments may be accessed on the Commission's Web site at www.dps.ny.gov, by searching Case 14‑T‑0360.

To comment by phone, you may call the Commission's Opinion Line at 1‑800‑335‑2120. This number is set up to take comments about pending cases from in‑state callers, 24 hours a day. Callers should press "1" to leave comments, and should refer to "Case 14‑T‑0360 - Dunkirk Gas Corporation - Gas Pipeline." These comments are not transcribed but will be summarized and reported to the Commission.

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For a revised fact sheet on the Dunkirk repowering project, click here.