LINDEN,
NJ – April 9, 2012 – GE
(NYSE: GE) unit GE Energy Financial Services announced today that it will
auction 225 megawatts of bi-directional electricity transfer capacity from its Linden
variable frequency transformer (VFT) smart grid project at the intersection of
the New York City and PJM power grids.
GE Energy Financial Services will hold the
auction in June to sell nine blocks of 25 megawatts of transmission scheduling
rights that will become available on November 1, 2012. These blocks can be used
by the project’s customers to sell power capacity and energy sourced in the PJM
Interconnection, the largest centrally dispatched electric grid in the world, into
the New York Independent System Operator (NYISO) and its zone serving the New
York metropolitan area. Linden VFT customers also can route energy from NYISO
to the PJM Interconnection.
The project is capable
of transferring 315 megawatts of capacity, enough for up to 315,000 homes, between
PJM and NYISO, through its connection to a cable running in bedrock 60 feet
beneath the Arthur Kill waterway – originating at GE’s 900-megawatt Linden cogeneration
power plant – and connecting to Consolidated Edison’s Goethals substation in
the New York City borough of Staten Island.
Since commercial
operation began in 2009, the Linden VFT project has operated with 97 percent availability,
and has successfully demonstrated the flexibility to flow power in both
directions between NYISO and PJM. These variable frequency transformers are helping to stabilize New
York City’s and PJM’s power grids, increasing energy reliability and providing
consumers with more diverse and lower-cost power sources. The variable frequency transformers provide a precise control path
between electrical grids, permitting power exchanges previously impossible
because of technical constraints. They enable transmission system operators at
PJM and NYISO to control power flows with high reliability, speed and
efficiency, while offering flexibility in how utilities meet growing energy
demand.
Four power marketing and trading companies won an initial auction in
January 2007 for the Linden VFT’s electric transmission capacity from what GE
Energy Financial Services believes was the first merchant US transmission
project not dependent on a long-term arrangement with a rate-based entity. The
smart grid project builds on GE Energy Financial Services’ 30-year legacy of
investment in power transmission and generation. GE Energy Financial Services holds equity investments in power projects
which it either operates itself or are operated by
third parties with a capacity to produce 30 gigawatts.
GE Energy Financial
Services will hold an “open season” to allocate transmission scheduling rights entitling
Linden VFT’s customers to determine use of the project. To learn more about the
process, interested parties may visit www.lindenvftauction.com, where
they can find an Information Memorandum that describes the Linden VFT, the
transmission scheduling rights that will be made available, the auction
rules and the benefits of owning these transmission scheduling rights, as well
as a calendar and important announcements regarding the open season. Any
questions can be directed to iam@lindenvftauction.com. The Brattle Group is managing the open season for GE Energy
Financial Services.
Bidders can procure up
to nine available 25-megawatt blocks for terms ranging from a minimum of one
year, up to 10 years and seven months. Bidders are allowed to make multiple
offers for the desired number of blocks, where each offer corresponds to a different contract duration.
About GE Energy Financial
Services
GE
Energy Financial Services’ experts invest globally across the capital spectrum
in essential, long-lived, and capital-intensive energy assets that meet the
world’s energy needs. In addition to capital, GE Energy Financial Services
offers the best of GE’s technical know-how, technology innovation, financial
strength, and rigorous risk management. Based in Stamford, Connecticut, the GE
business unit helps its customers and GE grow through new investments, strong
partnerships, and optimization of its approximately $20 billion in assets. For
more information, visit www.geenergyfinancialservices.com
About GE
GE (NYSE: GE) works on things that
matter. The best people and the best technologies taking on
the toughest challenges. Finding solutions in energy,
health and home, transportation and finance. Building,
powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's
website at www.ge.com.
Media Contact:
Andrew
Katell
GE Energy
Financial Services
203-961-5773