Newsday (Nassau Edition) from Hempstead, New York • 3

Grumman Set to Construct Own Generator in Bethpage that it is the way of the future I think that Jack idea has a tremendous amount of But he cautioned that with the present utility-rate structure in New York "one of the catch 22s is that when a large user gets off the system that leaves the other customers paying higher Howard Shapiro general counsel to the State Energy Association a lobbying group for the investor-owned utilities agreed with Kessel that plant could raise rates for other customers "When you take high-load customers off a system like there are fixed costa to the system that have to be borne by the rest of the Long Island energy-supply picture Along with that goes energy conservation and load management plus the need to bring the Shoreham nuclear power plant on Jones said that the Grumman plant will generate electricity along with the steam that the company already produces He added that one reason for the low cost of producing its own power is that the firm is already producing steam for heating and manufacturing and the generation of electricity will be part of the steam system In addition he said air conditioning system will be converted to operate on steam instead of electricity He said that final plana for the plant which will be powered by either oil or natural gas or both according to Grumman officials are not expected to be approved before the end of the year Francis Rivett a spokesman for the State Public Service Commission said that other large companies in the state already run their own electric plants "If this plant is built only to serve Grumman it needs no PSC Rivett said He added that if Grumman wanted to serve other customers or sell power to LILCO the PSC would get involved State Consumer Protection Board chief Richard Kassel said There is no question that co-generation is big Word on Republic: Maybe By John McDonald Grumman Corp whose ehiwnTi has for several years complained about high Long Island Lighting Co rates is planning to build its own generating plant to provide most of the power for its main facility in Beth- Arcording to Weyman Jones a company spokesman the planned 25-megawatt plant would produce electricity for 5 cents a kilowatt-hour about 40 percent less than what Grumman now pays for power received from LILCO The company now spends $25 million a year for the 54 megawatts of electricity it uses for its Long Island operations 37 megawatts of them at Bethpage Grumman officials did not estimate the cost of the proposed plant The plans were disclosed in a letter that fimrrm-mn rViairmuTi John Bjpr wirth sent to top executives of Consolidated Edison Co and five upstate investor-owned electric utilities seeking advice on how to deal with the problem of escalating electric rates on Long Island Bierwirth who has called for serious consideration of proposals for a tiublic takeover of ULCO said in the etter that high LILCO rates are making Long Island businesses desperate "We are getting to the point that a mother comes when she runs from the onrushing lava She to drop her child We may have to drop the privilege of our own power Bierwirth wrote (LILCO foe out of fluids for proxy fight Page 21) The Grumman plan follows by about five weeks an announcement by Brook-haven National Laboratory that it will build an 115-megawattplant to offset its electric costs Both Grumman and the laboratory are currently receiving some power from the state power authority's Fitzpatrick nuclear power plant at a cost of about 55 cents per kilowatt hour LILCO charges about 84 cents Jones said that Grumman has worked with LILCO in developing its plans adding that the plant mil help all of Long Island by taking some pressure off the LILCO system LILCO vice president Jack Russell who noted that the Grumman proposal was one of several in which the utility was involved said "All of these plants will comprise an important segment in the solution the ultimate solution of the Also unclear is whether Grumman would consider a Republic purchase if the T-46 program considered by analysts to be chief asset is not funded in the US Defense fiscal 1987 budget Officially the process of preparing a defense budget for submission to Congress in January is secret but the news usually leaks and trade magazines and Fair-child executives have said the T-46 a 650-plane $26-billion program is on a list of projects in danger of not being funded Grumman has not commented on the significance and it has not said why it set the Thanksgiving deadline But Rep William Carney a Hauppauge Republican and member of the Armed Services Committee believes that the T-46 issue and the deadline are related and that Grumman intends to use the next month to rally support in the Pentagon for the T-46 "Grumman has access to the Defense Department better than most congressmen Carney said While it is not as good as a signed agreement the mere expression by Grumman of interest in Republic-should improve the chances said Rep Norman Lent the East Rockaway Republican who heads the Long Talnnri congressional caucus "It Grumman is one of the preeminent defense he said By Tom Incantalupo Less than eight hours before its self-imposed Thanksgiving Day deadline Grumman Corp made good its promise to announce a decision about purchasing Fairchild troubled Republic division in Farmingdale But the brief announcement made late Wednesday said only that Grumman of Bethpage had "initiated with Fairchild of Chantilly Va and that Grumman "hoped the negotiations would result in an agreement in the near It was not the gono-go decision that had been expected But outsiders who have been watching the situation saw the statement as significant Said analyst Marc Klee of the National Aviation and Technology Coop a Manhattan investment fund "It tells me that after Grumman has carefully investigated the situation spent a lot of time invested a lot of people there is some inherent value in Republic that Grumman sees There is enough there that they feel they should go ahead with Fairchild announced Oct 3 that it was seeking a buyer or investor for the Republic division which with 3200 employees is one of Long three largest defense manufacturers The unit had run up heavy losses because of higher-than-expected development costs of its new T-46 Air Force training jet and production and tech nical difficulties in a joint aircraftbuilding venture with Saab-Scania of Sweden Grumman confirmed Oct 28 that it had a team at Farmingdale offices taking a careful look at the company Speaking at a business luncheon Nov 7 board Chairman John Bierwirth expressed optimism that a deal could be cut with Fairchild But in an interview Nov 15 he was pessimistic saying that his people had discovered "problems" with operations problems he declined to detail statement Wednesday seems to indicate optimism again Grumman spokesman Weyman Jones said he expected negotiations to begin next week in Farmingdale with Dan Huebner senior vice president for marketing and development heading the Grumman delegation A Fairchild spokesman William Fulwider would only confirm the contents of the Grumman statement But the Grumman announcement leaves unanswered some key questions One is whether Grumman thinks the problems mentioned by Bierwirth still exist Jones say Another is whether Grumman has maH an offer to Fairchild No comment from Jones on that either although he did say "We obviously have an idea in the negotiations about how we could NEWSDAY FRIDAY NOVEMBER 29 1965 sfc GO w1 l' V' Photo by Edna Murray Altsbui was backing into the station for a scheduled run to Patchogue The cars were disconnected and the train continued its run 15 minutes late Railroad officials were investigating the derailment Two Long Island Rail Road cars block traffic on a street in Montauk yesterday after they rolled past the station and off the end of the track at 3:40 pm No passengers were aboard the train which Lengthening the Line.