Advanced Power Services LLC, through a subsidiary called AP Dutchess, wants to construct and operate a $1 billion, 1,000-megawatt generating plant on the site of Mid-Hudson Recycling in the Town of Dover.
A plant of that capacity is about double the Danskammer plant owned by Dynegy in the Town of Newburgh. It could supply enough power for nearly a million homes.
What makes the site so attractive is it's adjacent to a 345-kilovolt transmission line owned by Consolidated Edison, the utility that serves New York City, and is also adjacent to a major natural gas pipeline route owned by Iroquois Gas Transmission System.
The plant would be fueled by natural gas.
Robert DeMeyere, project manager for the plant for Advanced Power Services, said, "We're in the very early stages of the project.
It would take two to three years for studies and permits and another two to three years for construction, he said.
Start of operations is targeted for early 2014.
Construction would create 500 temporary jobs and operation would create 25 to 30 permanent jobs. It would become a major taxpayer.
DeMeyere said although the line is owned by Con Ed, the power would be sold to the New York Independent System Operator through its bidding systems.
Utilities such as Central Hudson Gas & Electric Corp. and New York State Electric & Gas Corp. buy most of their power from the New York Independent System Operator.
The way the electrical grid works, DeMeyere said, "Power goes into the grid and is generally distributed right at the region where the power plant is any excess continues on in the grid."
Excess would tend to run south toward the New York metropolitan area, the source of the heaviest demand in the larger region.
The cooling of the plant would be by air condensers.
This would avert the need to be near a large body of water, as air-cooling uses only about 10 percent of the water that water-cooled plants do, such as those along the Hudson River.
It would be a combined-cycle plant that burns gas to turn turbines, and then uses the heat to make steam that turns other turbines.
Ken Klapp, a spokesman for New York Independent System Operator, said several grid studies would be done by his agency before approvals were given.
A variety of other approvals are also needed.
DeMeyere said the project has been broached to local officials.
The effect of adding a power plant upon the costs of electricity is generally that more supply tends to reduce cost, all other factors being equal.
The system operator's bidding process is intended to favor lower-cost producers. The agency has claimed, aside from fuel costs, it has succeeded in keeping costs lower than would have been the case otherwise.