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Bergen Record
By ALEX NUSSBAUM, Staff Writer

September 5, 2002

Company ends fight for power generator

North Jersey's strained water supplies escaped another threat Wednesday, officials said, after a power company said it would drop its fight to build a huge generator just north of the border in New York.

A day before a new round of hearings on the project, British-owned American National Power Inc. surprised opponents on both sides of the border by announcing it would withdraw its application to build the natural-gas-fired plant on Torne Valley Road, five miles north of Mahwah.

The company said it couldn't find enough takers for the 1,100 megawatts of power the plant would generate in the steep valley in Hillburn, N.Y. The decision ended a battle that had raged in both states for nearly four years.
"This is a clear victory for Bergen County and the people of our watershed," said Bergen Executive William "Pat" Schuber, who warned the plant could deplete and poison key water supplies. "The arguments we raised with regard to the danger to our water supply is even more poignant now because of the drought we've been in."

The proposed plant, one of the biggest generator projects in the nation, would have been blasted into a mountainside near the Ramapo River and above the Ramapo Aquifer, the underground lake that parallels the river as it passes from Rockland County into Bergen County. Both bodies of water feed wells and reservoirs that supply 2.5 million people in New Jersey.

ANP, a subsidiary of International Power Inc., made the announcement in London on Wednesday, though the company hadn't officially pulled its permit application before New York State regulators.

But a spokesman, Greg Kelley said, "Circumstances would really have to change quite significantly" for American National to resurrect the idea.

It was the second defeat in less than a year for a power project in the narrow crease of a valley bordered on three sides by New York's Harriman State Park. Last December, Sithe Energies Inc., a New York City company, dropped plans to build an 827-megawatt plant near the American National project and also cited the faltering market.

Waldwick Mayor Jim Toolen, whose constituents draw water from wells fed
by the Ramapo system, said the 

problem with the proposal was chiefly one of location.

"We were never opposed to a power plant being built in the region, and we encouraged that," he said. "But our position is it shouldn't be built right over our water supply, where it could impact so many people."

Blasting into nearby mountains to build the plant could have damaged the aquifer below, Toolen and other critics argued. The company also planned to store ammonia on site for its air pollution control systems. Opponents feared the chemical could seep into the aquifer or brook and poison the water supply.

Formally dubbed the Ramapo Energy Project, the plant would have sucked an average of 21,000 gallons of water a day from the river to cool its generators - but as much as 72,000 gallons when electricity demand was at its peak.

The company said it would use a state-of-the-art cooling system to minimize water use and would take nothing at all during droughts, when it would use a reserve supply stored in water tanks.

But New Jersey officials said development on both sides of the border was already straining the Ramapo's supply. Besides wells in New Jersey, the river helps fill the Wanaque and Monksville reservoirs, which supply 2.5 million customers in the northern part of the state.

On the New York side, opponents said the plant would foul the skies with air pollution and destroy an endangered timber rattlesnake snake habitat. The Ramapough Mountain People, a group of about 1,200 in both states who claim Native American roots, filed an "environmental justice" lawsuit against the company last year.

The suit claimed the Ramapoughs had been sickened by decades of industrial pollution in the region, and that adding the power plant would amount to a violation of their civil rights.

Kelley, the company spokesman, said the rattlesnakes were a factor in the decision to pull out. But American National maintained that none of the other environmental issues were serious.

"Over the years, we've really tried to address every and any concern," he said. "We felt it was a good project."

New York utility officials had planned to hold a hearing today to begin debating the air pollution complaints and other issues. Critics of the project, though they said they expected to prevail, were caught off guard by the timing of the announcement.

More than any environmental opposition, however, the plant was shot down by the vagaries of the electric power market, both sides agreed.

Both Torne Valley proposals were among hundreds of plants pitched by power companies around the country, as states deregulated their power markets to foster more competition.

Toolen, the Waldwick mayor, is also a partner in a firm that measures pollution from power plant smokestacks. He's seen many of those proposals go by the wayside in the past few months, he said.

"It's really a post-Enron fallout," he said. "It was driven largely by projections of future energy use and they turned out to be somewhat inflated and that meant many of the companies, like Enron, turned out to be inflated. Now, they're all pulling back."

The fate of the 62 acres American Power planned to build on, and more than 200 acres in Torne Valley, now rest with land owners who planned to lease to the utilities.

Activists and officials in Rockland and Bergen said they would concentrate on trying to buy the properties to preserve them as open space.

The Palisades Interstate Park Commission is already in negotiations to purchase some of the property, though it's a long way from a final deal, said Executive Director Carol Ash.

Schuber added, "The clear priority we have now as a state and hopefully as a region is to make the safety of our watersheds paramount.

"I'm hoping that as a result of this withdrawal, that might start a spark to get both states working on that."

 

Last Updated: September 09, 2003
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