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| ANNOUNCING... |
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| Mayor Bloomberg Releases Annual Energy Policy Task Force Status Report
On June 26, 2006, Mayor Michael R. Bloomberg and the members of the New York City Energy Policy Task Force released the 2006 Energy Policy Task Force Status Report, which shows significant advances on all 28 recommendations made by the Task Force in its 2004 report, New York City Energy Policy: An Electricity Resources Roadmap. The Report outlines achievements in energy efficiency, new clean energy capacity, and infrastructure planning that help meet current and future energy demands.
Highlights include the following:
- Construction in New York City of 1125 megawatts of clean, state-of-the-art electric generating plants
- An innovative three-year initiative to reduce peak electric demand by a total of 675 megawatts—or the equivalent of a large power plant
- The completion of the City’s first 20-year energy infrastructure master plans for Hudson Yards and Lower Manhattan to support planned future development
- New partnerships with the private sector to integrate energy efficiency and other green building standards into construction projects that will impact nearly 9 million square feet of development
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 NYC Energy Policy Task Force 2006 Status Report
Original 2004 Task Force report
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| DoITT Pilots Wireless Network for
Emergency Responders
In early May, the Department of Information Technology and Telecommunications (DoITT) commenced a pilot program to test two competing wireless technologies to create a Citywide Mobile Wireless Network for emergency responders. This pilot program will help New York City create a wireless network for emergency responders to meet the challenges in public safety communications. It will be the first of its kind in the country and will provide critical information for those who protect and serve the residents of the City.
During the six-month pilot program, the two companies selected for the pilot - Northrop Grumman Corporation and Motorola - will install and test their wireless capabilities in Lower Manhattan. After the six-month pilot, the City may select one of the vendors to implement the wireless system citywide.
The goal of this project is to evaluate networks that can provide emergency personnel in the field with immediate access to large file transfers, including maps, building layouts and federal and state anti-crime and counter-terrorism databases. For example, the network will support the ability to transmit police data on fingerprints, mug shots, and increase the Police Department's ability to improve surveillance and traffic management. In addition, the network will create high-speed links to existing NYPD, FDNY and EMS data systems. For the FDNY, the wireless network will help integrate technologies currently under development including wireless electronic command boards and firefighter tracking technology. The wireless network will also be able to support full-motion video and radiological and biological environmental monitoring. Other City agencies including the Department of Transportation, Department of Buildings, Department of Environmental Protection, and the Department of Consumer Affairs, will also have access to the wireless network for non-emergency field personnel, including maintenance workers and inspectors. |
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| Graduate Study Released on Renewable Energy Potential in New York City
Under the guidance of Ariella Rosenberg and Tim Daniels of the NYCEDC Energy and Telecommunications Department, and Professor Steve Hammer of Columbia University, a team of Columbia University Graduate Students analyzed the potential for renewable energy usage in New York City. The report entitled Powering Forward: Incorporating Renewable Energy into New York City’s Energy Future, evaluated the resource potential, regulatory environment, and financing options for using landfill gas, tidal power, wind power, and solar power as sources of electricity in New York City. |
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| IN THE NEWS... |
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| Astoria Energy
In May 2006, Astoria Energy LLC began commercial operation of 500 MW of generating capacity—enough to power approximately 500,000 homes. The $1 billion plant is a state-of-the-art, natural-gas fired, combined cycle generating facility located at the Bowery Bay/Steinway Industrial complex in the Astoria section of Queens. Also in May, the plant began delivering energy and capacity to Con Edison under a long-term power purchase agreement. A second phase of construction could add another 500 MW to the facility for a total of 1000 MW of capacity. There are no active plans for this second phase of development, which would have to be financed separately.
Astoria is one of the largest power plants built in the City in more than 25 years and represents 5% of New York City's current peak power requirements. The combined cycle facility is also one of the most efficient, with an estimated heat rate of about 7,200 British thermal units per kilowatt-hour. Massachusetts-based SCS Energy, LLC, which holds an equity interest in Astoria Energy, started development of the project in 1999 and commenced construction in August 2004. The Astoria plant’s output was first bid into the day a-head market less than two years later on May 21, 2006. That same day, North American Energy Services Company (NAES), a broad-based provider of services to the power generation industry, announced that it assumed full responsibility for the operations and maintenance of the facility. |
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| Agreement reached on Con Edison
Steam Rates
On June 2, 2006, Con Edison, Public Service Commission Staff, and the City of New York, among other organizations, signed a settlement on the recent Con Edison Steam Rate Case that avoids a proposed system-wide increase in base rates for steam consumers through September 30, 2008. The original proposal called for a system-wide increase in steam base rates of more than 11.8% or $82.6 million over the next two years. The City actively participated in the case negotiations on behalf of City steam energy customers.
The Con Edison steam system is the among the largest district steam systems in the world, serving approximately 1,800 New York City customers. The steam system is important not only to steam customers, but to electricity consumers as well. The option of steam as an energy source reduces the demand and cost of electricity during the most critical summer demand period. This proposed settlement, which has been submitted to the State Public Service Commission for final approval, will help keep energy reasonably priced in the City while enhancing the efficiency and reliability of the Con Edison steam system.
In addition, the settlement introduces a series of incentives that will require Con Edison to achieve specific performance goals designed to solidify current customer relationships, expand its customer base, and improve productivity while reducing costs. The agreement also requires Con Edison to conduct studies to explore innovative options for the expansion of the steam system, conclude studies that will identify the best options to satisfy the short term steam production needs, and engage in short and long-term strategic planning. In short, the settlement ensures that New York City steam customers will avoid significant bill increases while charting a course designed to ensure the long-term viability of the Con Edison steam system.
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| Summer 2006 Peak Demand
According to Con Edison, the forecasted in-City peak load for summer 2006 is 11,630 megawatt (MW), 215 MW higher than last year's adjusted peak load. The forecasted peak load for the Con Edison service area, including Westchester County, is 13,400 MW, 250 MW higher than last year's adjusted peak load.
On average, New York City’s peak load is 35% of New York State's. The New York Independent System Operator (NYISO) forecasts that the New York State peak load for summer 2006 will be 33,295 MW which is 1,220 MW (3.8%) higher than last year’s actual summer peak load of 32,075 MW. The Northeast Power Coordinating Council (NPCC), a North American council promoting reliable and efficient operation of power systems in the Northeastern U.S. and Canada, stated that assuming a typical weather situation, New York State will have an adequate electricity supply this summer due in part to new generating capacity that came on line this year.
Since summer 2005, over 1000 MW of additional resources have been added to the New York system. Sources include both Astoria Energy LLC’s and the New York Power Authority’s new 500 MW combined cycle projects, both located in Astoria, Queens, and the 198 MW Maple Ridge Wind Farm in Upstate New York. Participation in peak load management programs, including the Emergency Demand Response Program and Special Case Resources programs, represent an additional 1,145 MW of additional electricity resources statewide. |
| Summer 2006 Energy Tips |
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| U.S. Wind Power Growth Expected to Set New Records This Year
The American Wind Energy Association (AWEA) projects another record-breaking year for U.S. wind installations. Wind capacity is expected to increase by nearly 3,000 megawatts (MW) this year which, according to AWEA, would power over 650,000 homes. Furthermore, AWEA also estimates nearly 14,000 MW of wind capacity will be online in the U.S. by the end of 2007.
Installations are currently planned in over 10 states including New York, Iowa, Oklahoma, Kansas, Texas, California, and New Jersey among others. The following list highlights various current, large scale projects across the United States:
- Oklahoma Centennial Wind Farm – 120 MW
- Kansas Spearville Wind Energy Facility – 100 MW
- Texas Forest Creek Wind Farm – 125 MW
- California – 150 MW
- New Jersey potential offshore wind test pilot project -
350 MW
- NY Maple Ridge Wind Farm (Phase II) – 200 MW
While the wind industry is growing both in the U.S. and abroad, the U.S. took the lead in 2005 with nearly 2500 MW installed. AWEA Executive Director Randall Swisher attributes the recent boom in the wind industry to the current three year window of stability in the federal production tax credit for wind generation. Furthermore, President Bush recently noted that wind energy could contribute up to nearly 20% of the US electricity supply, approximately the amount of electricity currently derived from nuclear power. Worldwide, the wind industry installed more than US$14 billion worth of new generation and currently has nearly 60,000 MW of capacity. |
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| Energy Efficiency Tax Deductions for Commercial Properties
The IRS recently released guidelines detailing how commercial building owners (or leaseholders) could qualify for energy efficiency tax deductions. Pursuant to the Energy Policy Act of 2005, the IRS offers commercial property owners the opportunity to benefit from making energy efficiency improvements to their buildings. According to David W. Hewett, the International Chairman of Building Owners and Managers Association (BOMA), the release of the IRS guidelines represents an important move to push the incentives of the energy bill forward.
The benefits outlined in the Energy Policy Act, signed by President Bush in August 2005, apply to improvements implemented during the period of January 1, 2006 through December 31, 2007. The IRS allows deductions up to $1.80 per square foot of building floor area for buildings that achieve energy savings of 50% as compared to a base building defined by the 2001 model commercial code. If owners cannot reach a 50% reduction, they have the option of taking a $0.60 cent per square foot of building floor area deduction if they meet a target of approximately 17% energy savings.
The recently published IRS notice also establishes a required certification process for proposed energy savings. This process outlines steps for building owners to obtain certification in order to be approved for the deduction. For more information, visit www.irs.gov. |
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| TECHNOLOGY CORNER... |
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| Cold Cathode Fluorescent Lamp (CCFL)
While many fluorescent lights use relatively large cylindrical T8 and T12 bulbs, cold cathode fluorescent lamps (CCFLs) use T1 bulbs that are smaller, more efficient, and longer lasting. Currently, CCFLs are mainly used as back lighting in Liquid Crystal Display (LCD) projectors or for laptop computers; however they could also be used in exit signs, copy machines, and under-cabinet lighting.
T1 lights are approximately 3 mm in diameter, release minimal heat, and are highly energy efficient. While the average incandescent light uses approximately 24-40 Watts and lasts for two to eight months, CCFLs use approximately 5 Watts and can last for over 10 years or 100,000 hours. CCFLs also produce bright, color correct lighting, and come with a dimmer option. Since the T1 light is extremely fragile, new shock-absorbing techniques have been created to make T1 lighting applicable to more uses.
For example, HSBC is retrofitting all of the Company’s exit signs in its New York City banks with the T1 Lighting Company’s EnergyStar rated T1 lighting product. In addition to the environmental benefits associated with the use of this highly efficient application, the T1 lighting products offer cost savings as a result of fewer material replacements, low maintenance costs, and reduced energy consumption. These cost and energy benefits make the technology an attractive lighting alternative for energy conscious consumers.
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