Neptune on track to build NJ-NY power cable

The Neptune Regional Transmission Project aims to link Canada's Nova Scotia and New Brunswick transmission systems with Maine, Massachusetts, Connecticut, New York and New Jersey via undersea cables.

The first phase of the project will connect New York City and Long Island with power sources in New Jersey.

When completed, the system will be capable of moving 4,800 megawatts (MW) of power, enough to meet the needs of almost five million New York and New England homes.

Earlier this month, Neptune said it received bids from investment grade players in the energy industry for the first phase of its proposed network.

The purpose of the bidding process was to determine the level of interest in the project and to show investors the network will be viable.

"We got numerous and significant bids, which will make it easier for us to get financing through equity and debt offerings," said Paul Rich, chief operating officer of Atlantic Energy Partners LLC, currently the sole owner of Neptune.

Rich said the company was evaluating the bids and expects to sign agreements with the Phase One bidders by mid-December.

He said Neptune expects to receive bids for the second, third and fourth phases of the project on Dec. 21.

Neptune is a project of international development team Atlantic Energy Partners.

The partners are construction firm Cianbro Corp. of Maine, engineer Tompkins Research and Management Consulting of Connecticut, financial analyst ESAI Energy Ventures LLC of Massachusetts, Canadian developer Standard Energy Development of Halifax and energy and environmental law firm Curtis Thaxter Stevens Broder and Micoleau of Maine.

WHY NEPTUNE Power grid operators in New York and New England have long said the heavily populated Boston, New York City, southwestern Connecticut and Long Island areas are in desperate need of more electricity to meet their growing needs.

Energy companies, however, have found it difficult to build new power plants in the cities because of local opposition from community and environmental groups.

Moreover, the opposition of suburban communities to new high voltage transmission lines, has made it almost impossible for energy companies to connect the cities to external sources of power.

Meanwhile, in an effort to gain needed jobs and tax dollars, communities in less populated parts of Maine, Nova Scotia, New Brunswick and New Jersey have eagerly supported the construction of new power plants.

Neptune proposes to solve these problems with an undersea transmission system that would move inexpensive power from Maritime Canada, Maine and New Jersey to Massachusetts, Connecticut, Long Island and New York City where it is needed.

Phase One, which is targeted for completion in 2003 to mitigate expected supply shortages in New York, will interconnect northern New Jersey with New York City via a 600 MW cable.

A second 600 MW series of two 300 MW cables will connect central New Jersey to western and central Long Island.

Phase Two, planned for completion in 2004, will interconnect New Brunswick to New York City via a 1,200 MW high voltage direct current (HVDC) cable that will run from New Brunswick and the southern tip of Nova Scotia to eastern Long Island and New York City.

Phase Three, planned for completion in 2005, will connect Nova Scotia to the Greater Boston area with a 1,200 MW HVDC cable.

Phase Four, planned for completion in 2006, will interconnect Maine and the Connecticut shore with a 1,200 MW HVDC via the Greater Boston and Long Island.