LIPA, National Grid to Shut Down Glenwood Power Station

LIPA and National Grid announced on Thursday that they have reached an agreement to shut down the Glenwood Landing and Far Rockaway power stations, effective June 2012.

The agreement is awaiting approval from the LIPA board of trustees, who will meet on June 23 at the OMNI Teleconference Center in Uniondale.

The shutdown of the Glenwood site on Shore Road is expected to reduce property taxes to reflect lower property values, according to a LIPA news release.

North Shore Schools Superintendent Edward Melnick said the expected reduction has the district on edge as the facility currently provides $14 million in taxes to the schools each year.

“We are very concerned about the impact,” said Melnick. “At this point we are still meeting with LIPA and National Grid to plan for any impact it may have on the schools.”

North Shore School District voters approved a 2011-12 budget of $90.2 million in May.

The Glenwood and Far Rockaway sites were selected as an economic and business case, said LIPA Vice President of Power Markets Paul DeCotis.

“This is a business decision that will save customers hundreds of millions of dollars over the next 20 years,” DeCotis said. “Once taken out of service, the plant sites will be remediated and available for future new development opportunities consistent with local zoning and community needs.”

DeCotis said the two facilities – which have been operating since the early 1950s – are “the oldest, least efficient units” and annually provide less than two percent of Long Island’s power needs.

The phase out of both plants is expected to save customers $76 million through 2015. It's a conservative estimate, according to DeCotis, who said there are still costs that haven’t been determined.

The decommissioning and demolition of the sites by National Grid is expected to take 12 to 24 months and will include an environmental assessment, according to DeCotis.

The Glenwood site – which has two natural gas fired units, each capable producing 100 megawatts of electricity – will operate with all employees on site through June 2012.

DeCotis said that displaced employees will be relocated to other Long Island plants.