Frequently Asked Questions

Who is TGE?

TGE is an independent power company whose principal, Adam Victor, pioneered in the development of independent power projects in New York, developing a major cogeneration plant in Syracuse. That project reliably serves several hospitals, universities and colleges with steam and delivers electricity into the local power grid. For the development of this project, TGE has assembled a broad-based team of developers, engineers, environmental consultants and attorneys experienced in the permitting, engineering, construction, and operation of electric power generation facilities. TGE’s team members have succeeded in working in New York’s complex and challenging physical, environmental, and human environment.

Why is TGE building a power plant in New York City?

In New York State, the generation of electricity is subject to a competitive market place. TGE’s proposed facility is expected to be very efficient and will be well positioned to compete against and displace generation from older, less efficient generating facilities. Studies performed by municipal and state organizations forecast that New York State’s and New York City’s power demands are growing and more generation capacity must be built.

How much of the City’s power requirements can the TGE plant provide?

At present, the plant would provide enough power and steam to supply approximately 10% of the City’s peak requirements. However, New York City’s power requirements are growing. In addition, plants built four or five decades ago are now obsolete and need to be replaced.

Why do plants have to be built in the City? Why can’t the power be brought in from someplace else?

The transmission lines, which connect the City to the surrounding areas, are already fully loaded and cannot bring in more power when it is vitally needed during peak periods. Finding acceptable rights-of-way for new transmission lines is extremely difficult. Also, steam cannot be economically transported long distances; the production of steam must be proximate to the steam distribution system. For both of these reasons, most or all of the new power plants necessary to meet the reliability requirements of the City’s energy system must be built within the City.

Where will the TGE plant be built?

The project will be built on an eight-acre parcel located on the East River in an industrial area of the Williamsburg/Greenpoint section of Brooklyn. Currently the site is used as oil storage and distribution terminal. The site is bounded by the East River on the west. On the north, it is bounded by the Bushwick Inlet; on the east by Kent Avenue; and on the south by North 12th Street.

Why was this site chosen?

The site was chosen as a suitable site due to its appropriate zoning and because of its proximity to critical electric, fuel, water, wastewater and steam infrastructure. The project site has been used for industrial purposes for over a century. It has been contaminated by various pollutants. As a consequence of the contamination, any redevelopment of the site will require the expenditure of very large sums for remediation.

What type of power plant will TGE build?

TGE’s plant will be an advanced, highly efficient and tightly controlled 1100 MW, combined-cycle power plant. In a combined-cycle plant, both a gas-turbine and a steam turbine are used in an integrated thermal cycle, resulting in a very efficient system. The primary fuel will be natural gas. In addition, the plant will function in a “cogeneration” mode which means that waste heat from the power cycle will be used to generate steam which could be delivered into the steam distribution system supplying most of Manhattan’s larger buildings with steam.

How do new power plants differ from old ones?

The older baseload power plants currently serving the City were built in a different era. They were state-of-the-art when they were built, but that was a very long time ago. There have been major advances in power generation technologies, in combustion-control technologies, and in computerization of equipment and control systems since that time. Needless to say, regulatory standards are far different today than they were several decades ago, and plants must meet much higher standards in a variety of respects. In short, new plants are much more efficient (they use much less fuel), much cleaner, and are more reliable and safer than older plants.

What are the environmental effects of such a plant?

Our plant will be much cleaner than the existing, older generating units serving the City. The advanced gas turbine technology we will be using greatly reduces the level of key air emissions as compared to those from existing older power plants. As our plant and others like it substitute for the older units over time, there will be substantial regional air quality benefits as well as reductions in the generation of global warming gases.

Besides air emissions, are there other environmental benefits to the TGE plant?

The cooling system for TGE’s plant will not withdraw from the Hudson and East Rivers, avoiding adverse impacts to aquatic habitat. TGE will also help to reduce the use of potable water, which is presently used to generate steam, by reusing water that is presently wasted.

What technological improvements allow new plants to be more efficient?

The primary technological breakthrough leading to a significant jump in efficiency was the introduction of combined-cycle technology. This technology “combines” a gas turbine with a conventional steam turbine. The efficiency improvement occurs because fuel is combusted only once — in the gas turbine. The hot exhaust gases from the gas turbine are used to heat the steam needed to generate electricity in the steam turbine. Older baseload plants utilizing only steam turbines were limited in their efficiency to less than 40%. Combined-cycle systems can achieve efficiencies approaching 55%. Combined cycle technology became possible only after gas turbines were adapted for power generation in the 1970s. The technology began to be widely used in the 1990s. Today, combined cycle systems are the technology of choice for most of the baseload power plants being built in the US.

How does an electric power plant also generate steam?

Waste heat from an electric power plant still contains enough heat to generate steam. Some electric generation potential is typically sacrificed in order to generate the steam but the overall effect greatly increases efficiency. When a single plant produces both electricity and steam, it is called a “cogeneration” facility. By making use of the waste heat, cogeneration systems can achieve overall efficiencies of 75% or more.

What will the plant look like?

TGE is taking extraordinary care to design its plant to be visually compatible with a modern, vibrant, urban setting. The plant design will not fit most people’s image of what a power plant or an industrial facility looks like. It will look more like a modern building than like the older power plants that currently exist in the City. We believe the architecture of this facility will redefine how power generating facilities should be designed in the future.

What benefits will the project provide to the City?

The project will generate millions of dollars in tax revenues for New York City. The project will create a thousand multiyear construction jobs and dozens of long-term professional positions. The project will reduce electric and steam costs in New York City and will help mitigate against price spikes, since every new supplier dilutes the potential that the few existing suppliers will use their position to gain market power.

Are there any other benefits of the proposed project to the community?

TGE has proposed several community amenities and benefits:

• A long-standing contaminated site will be cleaned up.

• Innovative architectural design that transforms the perception of a power plant and includes planted roofs and terraces, waterfront access, space for potential community-based uses, solar panels and dynamic façade treatments.

• The site will be developed so as integrate and enhance activities for New York’s 2012 Summer Olympic bid.

• TGE intends to establish a multi-million dollar fund for community-oriented projects.

Who will take the risk that the plant will be built on time and on budget and that it will run properly?

In the past, when utilities built power plants, the electric consumer frequently bore the risks associated with construction and operation of power generating facilities. Today, power plants in New York are being built by independent generating companies, in a competitive environment. TGE will bear the risk of construction and operation of this facility. As an electric consumer, you will not have to pay if construction costs go up or if the plant does not operate as planned. In addition, a special decommissioning fund will be set up to dismantle the facility after the end of its useful life.

What is the approval process for the project?

In New York State, major power projects must receive approval through a process outlined in Article X of the State’s Public Service Law. Through this lengthy process, issues associated with the project are thoroughly reviewed. The procedures outlined in Article X are designed to encourage and facilitate public participation in the approval process. TGE is holding public meetings, sending out mailings, and making information available regarding the project.

When is the project expected to begin operations?

The project’s scheduled in-service date is 2006.