BESICORP-EMPIRE PROJECT
Article VII Utility Interconnecitons Open House Mailing
December 19, 2002, Rensselaer City Hall, 3pm to 7pm

December 2002

Dear Resident:

Besicorp-Empire Development Company, LLC (BEDCO) has proposed the development of two combined projects to be located at the former BASF site at 36 Riverside Avenue, in the City of Rensselaer. These projects consist of a Recycled Newsprint Manufacturing Facility and a Cogeneration Power Plant. In conjunction with these projects interconnections must be made to provide natural gas to the Power Plant and to connect to the electric grid.

The proposed interconnection routes will be located on existing transmission line routes and will not require any new routes. You are receiving this notice as a homeowner or resident in proximity of the existing transmission line routes/proposed interconnection routes.

This mailing contains key information about the proposed interconnections, as well as a map showing the proposed routes. BEDCO invites you to a public open house on December 19, 2002 from 3 p.m. to 8 p.m. at Rensselaer City Hall regarding the proposed interconnections. BEDCO and project representatives will be available at the public open house to provide information and answers about the proposed interconnections.

To learn more about the proposed interconnections, you may also visit our Rensselaer office located at 11 Second Avenue, which is open on Tuesdays and Thursdays from 11 a.m. to 7 p.m., or by appointment, or visit our website at www.besicorp.com. You can also reach a BEDCO representative by calling (518) 465-6751.

Best regards,

BESICORP-EMPIRE DEVELOPMENT COMPANY, LLC
Kelly M. Ballard
Communications Coordinator


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Utility Interconnections

Electric Transmission Line
An electric transmission line capable of carrying the full output of the proposed Empire State Newsprint Project (ESNP) cogeneration power plant is proposed to connect the power plant to Niagara Mohawk's existing 345 kV Reynolds Road substation. The entire electric transmission line will be built within existing Niagara Mohawk right-of-ways (ROW) that already contain transmission lines. The proposed transmission line will originate at the 345 kV switchyard in the proposed power plant, located in the City of Rensselaer at the former BASF site, and will terminate at the Niagara Mohawk Reynolds Road Substation located in the Town of Defreestville, Rensselaer County, New York. The proposed route is depicted in blue on the map to the right. The overall length of the electric transmission line is estimated to be 8.3 miles. The proposed transmission line route will have three segments, which are more fully described below.

1. The first segment of the route starts at the ESNP switchyard and heads south for approximately 1.9 miles to the intersection of the existing New Scotland-Reynolds Road transmission line corridor. The ROW which would be utilized for this portion of the line is an existing 100-foot wide easement, which presently contains the 115 kV El Paso plant transmission monopole line. This portion of the proposed route will be modified to replace the existing wood monopole line with double-circuit steel monopole structures with one circuit (the ESNP line) operating at 345 kV and the other circuit (the El Paso plant line) operating at 115 kV.

2. The second segment of the proposed route starts where the first segment ends and heads east for approximately 2.4 miles in the existing New Scotland-Reynolds Road transmission line corridor to the intersection with the existing East Greenbush-Reynolds Road 115kV transmission line corridor. The existing 250-foot wide New Scotland-Reynolds Road transmission corridor presently contains the New Scotland-Reynolds Road 115 kV transmission line and the 115 kV El Paso transmission line. This portion of the proposed route would be modified by the addition of the new ESNP double-circuit monopole structures with one circuit (the ESNP line) operating at 345 kV and the other circuit position reserved for future use by Niagara Mohawk. These structures are proposed to be on the northern side of the existing corridor.

3. The third and final segment of the proposed route, which also contains existing transmission lines, begins where the existing New Scotland-Reynolds Road transmission corridor meets the existing East Greenbush-Reynolds Road transmission corridor. From this point, the proposed route extends north for approximately 4.0 miles ending at the Niagara Mohawk Reynolds Road substation. The same double-circuit monopole structures as in segment two are proposed to continue on the western side of the existing 355-foot wide combined New Scotland-Reynolds Road/East Greenbush-Reynolds Road transmission corridor.

During construction, minimized clearing of the ROW will be performed and the vegetation will be allowed to grow back until it meets the minimum clearances required. Any impacts to wetlands and streams will be minimized and temporary.

Above: Typical 150 foot monopole structures will be added to the existing infrastructure; these structures will be approximately 50 feet higher than the existing structures.

Gas Pipeline

The proposed gas pipeline will be capable of supplying all the gas needs of the facility and will originate from the existing Tennessee Gas Pipeline (TGP) to the site. The proposed gas pipeline route is depicted in red on the map to the right and consists of two segments, which are more fully described below.

4. A new Niagara Mohawk gate station is proposed to be installed at the TGP approximately 6.6 miles south of the proposed ESNP. The gate station will contain data acquisition and control equipment, odorization equipment, filtration, pressure and flow controls, and ultrasonic meters. From the new gate station, a dedicated 16-inch pipeline will be installed to connect the gate station to the proposed power plant.

5. From the gate station the proposed pipeline route will proceed north using Niagara Mohawk's existing electric transmission line ROW identified as Greenbush-Castleton 5 and Greenbush-Schodack 13 & 15, west along Niagara Mohawk's Albany-Greenbush 1 electric transmission line ROW, north along Route 9J in a Department of Transportation ROW, and then west into the proposed ESNP site. The 16-inch diameter pipeline operating pressure during the summer will range from 600 to 700 psig and during the winter from approximately 500 to 575 psig.

During construction minimized temporary clearing of the ROW will be performed and vegetation will be allowed to grow back. The pipeline route will be maintained in accordance with Niagara Mohawk requirements. Any impacts to wetlands and streams will be minimized and temporary.

*Both the electric and gas lines will comply with all Federal, State, and Local rules, regulations, and ordinances.