The original plant was commissioned by Grumman Aerospace for its Bethpage complex because it was deemed more cost-effective than purchasing power from electric utilities.

[13][14] Calpine purchased a 45 percent stake in the plant in 1997 from Brooklyn Union Gas, as part of the latter's divestment from some power generation interests preceding its merger with LILCO.

[8] It was part of a larger program to build peaking plants around Long Island to avoid the risk of rolling blackouts in the face of increased demands like those experienced in California the previous year, and given the strain on the system from a heat wave in 2001.

[16][17][18] In August 2004, the purchase agreement with Grumman expired and was not renewed, and the cogeneration activity at the original plant ceased.

[22] This solicitation also resulted in construction of the Caithness Long Island Energy Center; Pinelawn Power Plant in West Babylon, New York; and the Neptune Cable.

[21][23][24] Most of the land was owned by a private real estate developer; although Calpine had secured a lease from the owner, the New York Power Authority and LIPA decided to acquire the property outright through eminent domain, but the taking was overturned in 2008.