New Yorkers face rising energy costs and carbon emissions by xfo14057

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									  New Yorkers face rising energy costs and carbon
  emissions from an ineffective market, aging
  infrastructure, inefficient buildings, and growing needs.
  That’s why we must make smart investments in
  clean power and energy-saving technologies to reduce
  our electricity and heating bills by billions of dollars,
  while slashing our greenhouse gas emissions by nearly
  27 million metric tons every year.




 Energy
IEnergy
Energy
Provide cleaner, more reliable power
for every New Yorker by upgrading
our energy infrastructure
IEnergy
 Credit: NYC Economic Development Corporation
Provide cleaner, more reliable power
for every New Yorker by upgrading
our energy infrastructure




                        On July 17, 2006, the electric cables began to fail.   Every year, New Yorkers collectively spend
                        As the lights started flickering off, the residents    approximately $13.4 billion on the energy
                        of western Queens began alerting Con Edison that       that lights our buildings and powers our
                        a blackout had begun.                                  electronic devices, on our electrical delivery
                        Over the next nine days, Con Edison recorded           system, and on the fuel used for heating and
                        these calls to assess the scope of the outages—        hot water; the average residential energy bill
                        because there was no automated way to find
                                                                               is $145. But this consumption has additional
                        out. Finally, their employees drove through the
                        streets of western Queens and counted the              costs. It is responsible for roughly 80% of our
                        number of buildings without lights to estimate         global-warming emissions and more than
                        how many customers had been affected.                  40% of all locally generated air pollution.
                        Although we have the most reliable energy                 Even on regular days, our supply is nei-
                                                                                                                                         101
                        network in the United States, the recent Queens        ther as clean nor as affordable as it should
                        power outages betrayed the weaknesses in our           be. Our existing fleet of power plants aver-
                        aging grid. Less familiar, though, are the risks       ages around 30 years old, and uses mostly
                        revealed over the rest of the summer.                  out-of-date technologies. These older plants
                        Ten days after the blackout, a third multi-day heat    use 30% to 60% more fuel and produce sev-
                        wave gripped the city, with temperatures reaching      eral times the air pollution of newer plants to
                        as high as 102º. Although institutions and large       generate the same amount of electricity.
                        companies began extinguishing lights, raising air
                                                                                  But by 2012, even this supply will not be
                        conditioning temperatures, and shutting down
                        elevators, there was no systematic way to slow         enough. We are continually setting new
                        the skyrocketing demand. Con Edison customer           records for energy usage. As the summer of
                        representatives, police officers and members of        2006 showed, our ability to reduce demand
                        the City’s Office of Emergency Management began        in a coordinated, efficient way is limited. And
                        knocking on doors across the city. The Real Estate     our delivery infrastructure is under increas-
                        Board of New York began emailing many of its           ing pressure.
                        12,000 members. Newspapers, radio stations, and           By 2030, population and economic growth
                        local news networks carried announcements. All
                                                                               will strain the city’s energy network further.
                        urged New Yorkers to slow down their energy use.
                        It wasn’t enough.                                      If current trends continue, energy demand
                                                                               could grow substantially. By 2015 alone,
                        On August 1-2, the city set two consecutive
                        records for electricity demand, topping the            the city’s annual electricity and heating bill,
                        previous record set a year earlier. To prevent a       excluding delivery costs, will increase by
                        blackout, businesses began switching to backup         $3 billion, translating into energy bills
                        diesel generators that spewed pollutants into the      that are annually $300 to $400 higher for
                        air. Our dirtiest and least efficient power plants     the average New York household. As we
                        were turned on, making our air quality unhealthy       consume more energy, our environmen-
                        for people with heart or lung disease, the elderly,    tal impact will increase accordingly. By
                        and children. And since these aging plants are
                                                                               2015, we will be pumping an additional 4.6
                        more expensive to run, the city’s electricity
                        prices—already among the highest in the nation—        million metric tons of CO 2 into the atmo-
                        soared by 500% that day.                               sphere. (See chart on page 103: New York City
                                                                               Price of Electricity)


New York City skyline


                                                                                                    A GREENER, GREATER NEW YORK PLANYC
                                                                                                                                                                                                  2005                 2030

                       Projected New York City Energy Increase                                                  2005                   2030

                       Summer peak demand                                                                 Electricity consumption                                                           Heating fuel consumption
                                               14,700                                                                                                                                                             480,000,000
                                                                                                                                    72,000,000
                                                                                                                                                                                               422,000,000                              +14%
                                                            +29%
                            11,400
                                                                                                                                                  +44%
                                                                                                             50,000,000




                                                                           ME gawatt hou r s PE r YE ar




                                                                                                                                                                        MMb tu PE r YE ar
          ME gawatts




                             2005               2030                                                            2005                   2030                                                       2005                 2030



                                                                                                                                                     Source: KeySpan; Con Edison; NYC Mayor’s Office of Long-Term Planning and Sustainability


                                              72,000,000
                                                                                                                                    480,000,000

                                                                                                             422,000,000                          +14%
                                                            +44%
                          Reducing prices and CO2 emissions will
                            50,000,000                                        We can do better. Smarter choices and                                            York State. Since deregulation, power plant
                       require displacing high-cost, inefficient plants   targeted investments can yield substantial                                           construction and operation is now the role of
                       through an unprecedented demand reduction          savings. Our density is an advantage; less                                           private developers and owners. But without
                       strategy and new, clean sources of supply.         than 4% of our buildings contain roughly 50%                                         long-term contracts, there is no guarantee
                                                                          of the city’s built area. By focusing on these                                       that power prices will provide a sufficient
                       Energy planning
                                                                          sites—and our other largest energy con-                                              return—and land constraints, construction
                       Today, there is no entity capable of address-
                                                                          sumers—for upgrades, the impact could                                                costs, and higher financing requirements
                       ing these challenges. There are eight organi-
                               2005              2030                     be enormous.                                                                         have made the price of building power
                       zations responsible for some dimension of
                                                                              Unchecked, our city’s2030
                                                                                    2005                peak electricity                                       plants in New York almost three times the
                       energy planning in New York City, but not one
102                    of them is designed to take the city’s unique
                                                                          demand—the highest amount of electricity                                             national average.
                                                                          we will need over the course of a year—is pro-                                          Virtually every existing power plant in the
                       needs into account. None are empowered to
                                                                          jected to grow by 29% by 2030. Total electric-                                       city has the capacity to expand or improve its
                       bargain on behalf of 480,000,000
                                                New Yorkers, while pri-
                                                                          ity consumption could rise by 44% or more and                                        efficiency and environmental performance—
                       oritizing air quality, lowering global-warming
                            422,000,000                      +14%
                                                                          our consumption of heating fuels by 14%. But                                         but owners currently have no incentive to do
                       emissions, and ensuring affordable prices.
                                                                          it does not have to grow. We will seek to meet                                       so. Adding more supply would risk lowering
                       And there is no existing planning body that
                                                                          the entirety of this need by increasing our                                          prices across the market. While the health
                       analyzes how supply and demand-side strat-
                                                                          energy efficiency and expanding programs to                                          benefits are clear, there is no guarantee that
                       egies can work together to achieve reliable
                                                                          manage demand on our “peak” days—while                                               owners will make back their investment.
                       power for the city.
                                                                          actually reducing our consumption of heat-                                              As a result, only one repowering has
                       Demand reduction                                   ing fuels by 17%. (See charts above: Projected                                       ever taken place in the city. Since deregula-
                       Reducing our demand while absorbing growth         New York City Energy Increase)                                                       tion with the exception of investments by
                       will not only be difficult—it has never been                                                                                            NYPA—a public authority—only two private
                                                                          New, clean supply
                       done before. Energy efficiency programs in
                              2005              2030                                                                                                           powerplants have been built.
                                                                          It will take several years to benefit from this
                       the United States began during the 1970s,                                                                                                  Our heating and electricity will increasingly
                                                                          ambitious efficiency effort. In the meantime,
                       but consumption has still steadily risen along                                                                                          rely on natural gas, which is the cleanest-
                                                                          we must prepare for a short-term rise in
                       with the proliferation of air conditioners, cell                                                                                        burning fossil fuel. But our delivery capacity is
                                                                          our power consumption. We must also add
                       phones, laptops and other electronic devices.                                                                                           limited, creating some of the highest natural
                                                                          enough clean supply to retire our dirtiest
                       Even the most successful programs in the                                                                                                gas prices in the nation.
                                                                          plants, which are frequently located in some
                       country have failed to flatten demand; while                                                                                               The cleanest energy sources—such as
                                                                          of the city’s most underserved communities,
                       California has held its per capita energy use                                                                                           wind and solar power—are promising, but
                                                                          and make our prices more competitive with
                       constant, the state’s overall energy needs                                                                                              they are not yet financially feasible to play a
                                                                          the rest of the region. As a result, securing
                       have continued to grow (See chart on facing                                                                                             large role. Without significant support, they
                                                                          a clean, reliable, affordable energy supply
                       page: Electricity Consumption Per Capita)                                                                                               will not be able to assume a greater role in our
                                                                          will require generating an additional 2,000 to
                          In New York, under-investment, a series                                                                                              energy generation.
                                                                          3,000 MW of capacity by 2015.
                       of fragmented programs, and the absence
                                                                             In our current market, that won’t be easy.
                       of city-specific programs or planning have
                                                                          Before the mid-1990s, Con Edison was a
                       prevented us from achieving our efficiency
                                                                          regulated monopoly that built, owned, and
                       potential. Participation in programs has also
                                                                          operated the city’s power plants and deliv-
                       been hampered by the city’s high installation
                                                                          ered the electricity they supplied. They were
                       costs and greater proportion of renters; build-
                                                                          guaranteed a return on their investment,
                       ing owners are reluctant to invest in upgrades
                                                                          because they could raise ratepayer costs to
                       that will only benefit their tenants through
                                                                          cover new construction. But in 1998, the com-
                       lower energy bills.
                                                                          pany was directed to sell its power plants to
                                                                          foster a competitive electricity market in New



      ENERGY PROvIDE CLEANER, MORE RELIABLE POWER BY UPGRADING OUR ENERGY INFRASTRUCTURE
                         Cost of Electricity*
    New York City Price of Electricity* gas price after 2009 Electricity Consumption Per Capita
      $/MWh (nominal) – assuming constant real                                                                                                                                                                                       Compound Annual Growth Rate
    *Assumes constant real gas price after 2007. Price is wholesale:                                                                                                                                                                 Percentage of Increase
    does not include delivery, surcharges or taxes.                                                                        U.S. AvERAGE         CALIFORNIA                 NEW YORK CITY                                             1970–2006

                   $170                                                                                          100

                                                                                                              90                                                                                                                     +1.7%   US AvERAGE
                         150                                                                               ~60% growth
                                                                                                              80
                                                                                                             (2005-30)
COST PER MEGAWATT HOUR




                         130                      ~ 60% GROWTH
                                                  (2005–30)
                                                                                                              70




                                                                                                     MEGAWATT HOURS
                                                                                                                Extrapolated projection
                                                                                                                  60
                         110                                                                                    based on historical growth                                                                                           +1.4%   NEW YORK CITY
                                                                                                                  50                                                                                                                 +0.5%   CALIFORNIA
                                                                                                                 *Cost does not include
                          90                                                                                     delivery surcharges or taxes.
                                                                                                                  40

                          70                                                                                          30

                                                                                                             20
                                                                                                           +36%
                          50
                                                                                                                      10

                          30                                                                                           0
                               2000   2005      2010    2015       2020      2025      2030                             1970        1975        1980         1985          1990            1995            2000            2005
                                                       Source: ICF Consulting and NYC Economic                                                           Source: U.S. Department of Energy; U.S. Census Bureau; and Global Insight
                                                             Development Corporation Analysis
                           Source: Source: NYC City Hall – Population Planning department;
                           ICF; KeySpan; ConEd; team analysis



    Delivery infrastructure                                                                      Our Plan                                                                          This plan will require significant effort,
    We also must make sure that the supply we                                                                                                                                  capital, and political will. The City will pro-
    have can reach its recipients.                                                               We know the solution: greater investment in                                   pose an amendment to the City Charter that
        The world’s first electric power delivery                                                a comprehensive energy efficiency plan, cou-                                  will require it to invest 10% of its energy bill
    system was developed in New York City in                                                     pled with an increase in clean supply.                                        in reducing the energy consumed by City
    1882. When Thomas Edison switched on the                                                        We must target our largest energy con-                                     operations. Citywide initiatives will be funded
    first electric station in Lower Manhattan, it lit                                            sumers—institutional buildings, commercial                                    through an increase in the energy bill sur-
    up a total of four hundred bulbs. A year later,                                              and industrial buildings, and multi-family resi-                              charge that customers already pay.
    there were over 10,000 electric lights in Man-                                               dential buildings—and accelerate energy effi-                                      By spreading the charges of these initia-
                                                                                                 ciency upgrades through a system of incen-
    hattan fed by a web of overhead wires, which                                                                                                                               tives among all energy users, the costs will be                                     103
    were moved underground after the blizzard of                                                 tives, mandates, and challenges.                                              reasonable—approximately $2.50 per month
    1888 to improve public safety.                                                                  To retire our oldest, most polluting plants,                               for the average household. But they will reap
        The design of this underground grid                                                      we must encourage the addition of new, clean                                  enormous benefits for the entire city.
    has remained essentially unchanged in the                                                    power plants through guaranteed contracts,                                        By implementing an unprecedented energy
    decades since. As a result, although we have                                                 and expand the market for renewable ener-                                     efficiency strategy, while increasing supply,
    the most reliable network in the United States,                                              gies in the future.                                                           New York City’s overall power and heating
    the grid’s current technology and complexity                                                    Together, the strategies just outlined                                     bill will plunge by $2 billion to $3 billion annu-
    make it difficult to repair. This can be espe-                                               can produce a reliable, affordable, and envi-                                 ally—saving the average household $230
    cially damaging during events like the 2006                                                  ronmentally sustainable energy network for                                    a year on its energy bill by 2015.
    power outages in western Queens, when the                                                    New York City.                                                                    The environmental impacts will be equally
    lack of “smart” technologies meant that we                                                      But today there is no entity capable of                                    impressive. By 2015, our carbon emissions
    were unable to assess the extent or location                                                 implementing these projects and realizing                                     will have been slashed by seven million tons,
    of outages in a timely fashion.                                                              their goals.                                                                  bringing us closer to our goal of reducing the
        To overcome these challenges, we have                                                       That’s why we will work with the State to                                  city’s greenhouse gases by 30% by 2030 and
    developed an aggressive, integrated plan that                                                create a New York City Energy Planning Board                                  providing a healthier environment for all New
    puts the city’s energy, air quality, and green-                                              that will help us shape our energy future. The                                Yorkers. (See table on following page: Our
    house gas targets within reach.                                                              Board will oversee a new entity that will coordi-                             Plan for Electricity)
                                                                                                 nate all energy efficiency efforts within the city.


                          Our plan for energy:
                          Improve energy planning                                                                                          Expand the city’s clean power supply
                           1 Establish a New York City Energy Planning Board                                                                8 Facilitate repowering and construct power plants and
                                                                                                                                              dedicated transmission lines
                          Reduce New York City’s energy consumption                                                                         9 Expand Clean Distributed Generation (“Clean DG”)
                           2 Reduce energy consumption by City government                                                                  10 Support expansion of natural gas infrastructure
                           3 Strengthen energy and building codes for New York City                                                        11 Foster the market for renewable energy
                           4 Create an energy efficiency authority for New York City
                           5 Prioritize five key areas for targeted incentives
                                                                                                                                            Modernize electricity delivery infrastructure
                           6 Expand peak load management
                                                                                                                                           12 Accelerate reliability improvements to the city’s grid
                                                                                                                                           13 Facilitate grid repairs through improved coordination
                           7 Launch an energy awareness and training campaign
                                                                                                                                              and joint bidding
                                                                                                                                           14 Support Con Edison’s efforts to modernize the grid



                                                                                                                                                                                                                  A GREENER, GREATER NEW YORK PLANYC
      Current Energy Planning                                                     New York Governor
      structure In New York City                                                  • Nominates PSC Commissioners
             STATE                                                                • Nominates NYPA and NYSERDA                                          Federal Energy Regulatory Commission (FERC)
             FEDERAL                                                                Board Members                                                       • Approves licensure of hydroelectric power plants
             LOCAL                                                                                                                                        and regulates interstate gas pipelines and electric
                                                                                                                                                          transmission
             AUThORITY
             INFLUENCE                                                                                                                                  • Overseas NYISO
                                                                   Public Service Commission (PSC)
                                                                   • Broad oversight over utilities
                                                                   • Authorizes increases in energy charges through                                     New York Independent Systems Operator (NYISO)
                                                                     “rate cases” brought by utilities                                                  • Assesses supply needs on a 10-year horizon
                                                                   • Based on NYISO assessment, directs Con Edison to                                   • Administers wholesale electricity market
                                                                     secure supply when market fails to meet demand                                     • Manages New York State grid system




             New York City Government                          New York Power Authority                   New York State Energy Research                Con Edison
             • Works with NYPA to                              (NYPA)                                     and Development Authority                     • Delivers electricity and maintains grid
               incorporate city priorities                     • Secures energy supply for                (NYSERDA)
                                                                                                                                                        • Collects electricity payments
               into energy supply contracts                      government facilities                    • Creates and implements
                                                                 through own assets or                      energy efficiency programs,                 • Secures new supply when market fails to meet
             • Advocates for the interests                                                                                                                demand as directed by the PSC
               of city businesses, residents,                    contracts with outside                     funded through the Systems
               and government through PSC                        suppliers                                  Benefit Charge (SBC)                        • Collects SBC from customers on behalf of NYSERDA
               rate cases                                      • With City, co-administers
             • With NYPA, co-administers                         program to improve energy
               program to improve                                efficiency of City government
               energy efficiency of City                         buildings                                                     New York City Customers                                   Power Plant Owners and Operators
               government buildings                                                                                            • Consumes electricity                                    • Develops, owns, and operates
                                                                                                                               • Pays electricity bill, including the                      power plants
                                                                                                                                 Systems Benefit Charge (SBC)                            • Sells power to NYISO or directly to utility
                                                                                                                                                                                           (Con Edison or NYPA) or customer



104                                                                                                                                                                           Source: NYC Mayor’s Office of Long-Term Planning and Sustainability




            our Plan for Electricity                                                                                                                                    Improve energy planning
             NEw ElECtrICItY NEEds                                          MEgawatts         NEw sourCEs of ElECtrICItY                             MEgawatts          To stem global warming, improve the health
                                                                                              Reduce New York City’s energy consumption                                 of New Yorkers, and reduce the city’s energy
             Gap between existing in-city capacity1                                              • Energy efficiency                                                    bill by billions of dollars, we must take several
             and projected peak demand2
                                                                                    2,300        • Peak load management or demand response
                                                                                                                                                             2,500
                                                                                                                                                                        big steps: implementing aggressive energy
             Additional in-city resources required                                  5,000                                                                               efficiency and peak load management mea-
             (to meet PLANYC goals, including retirement
             of inefficient plants)                                                                                                                                     sures, upgrading our aging fleet of polluting
                                                                                              Facilitate repowering and construction of new clean            3,400
                 • Reduce greenhouse gas emissions
                                                                                              power plants and dedicated transmission lines                             power plants, building more Clean Distrib-
                 • Reduce pollution
                 • Reduce citywide electricity prices                                                                                                                   uted Generation, and developing renewable
                                                                                                                                                                        energy sources.
                                                                                                                                                                           But the existing organizations, programs,
                                                                                              Expand Clean Distributed Generation                             800
                                                                                                                                                                        and processes are inadequate to implement
                                                                                                                                                                        these policies. They are not charged with
                                                                                              Foster the market for renewable energy
                                                                                                  • Build the market for solar energy                                   considering goals for cleaning up the envi-
                                                                                                  • Expand energy production from sustainable
                                                                                                    biogas and biomass                                        600       ronment, moderating prices to consumers,
                                                                                                  • Support future opportunities: large-scale far                       and minimizing land use impacts—and they
                                                                                                    off-shore wind, on-site wind, and tidal energy
                                                                                                                                                                        are not designed to overcome the city’s
             total NEw ElECtrICItY NEEds                                            7,300     total NEw sourCEs of ElECtrICItY                              7,300       unique challenges.
                                                                                                                                                                           Finally, no organization is currently
            Source: NYC Mayor’s Office of Long-Term Planning and Sustainability                                                                                         empowered to develop a broad vision for
            1. Includes existing and committed in-city capacity resources (i.e., in-city generation, dedicated generation connected to the New York City                energy planning in the city that considers
               grid but located outside the 5 boroughs, and participation in certain New York Independent System Operator demand response programs).                    supply and demand together as part of an
               It also assumes the retirement of NYPA’s 875-megawatt old Poletti power plant in 2010.
            2. The New York State Reliability Council and the New York Independent System Operator require that 80% of New York City’s projected
                                                                                                                                                                        integrated strategy. (See chart above: Current
               summer peak demand be met through in-city resources due to limited transmission infrastructure. The projected peak demand for                            Energy Planning Structure in New York City)
               2030 reflects this 80% rule.




      ENERGY PROvIDE CLEANER, MORE RELIABLE POWER BY UPGRADING OUR ENERGY INFRASTRUCTURE
                                                                         Public Service Commission
Proposed New York City Energy                                                  Approves plans,
Planning board                                                               RFPs, and funding
                                                                                                                       Planning
                                                                          NYC Energy Planning Board
                                                                 Creates city-specific supply and demand plans
                                                              New York City New York State Con Edison/KeySpan                      CASE STUDY
                                                                                                                                   Long Island Power Authority
                                                                                                                                   The Long Island Power Authority (LIPA)
                                                 NYC Energy Efficiency Authority                     New York                      doesn’t just focus on providing electricity
                                                  Coordinates and implements                      Power Authority                  to Long Island consumers.
                                                       demand initiatives                     Issues and awards RFPs
                                                                                                                                   It does that, too. But as the entity empow-
                            Demand                                                                                     Supply      ered by State legislation to generate a
                                                                                                                                   power strategy for all of Long Island, LIPA
                                                             Customers                               Merchant
                                                                                                    Developers                     considers how reducing demand and adding
                                                  Funds and implements demand
                                                   initiatives; receives benefits                Builds new supply                 supply can work together to meet the area’s
                                                                                                                                   reliability needs.
 Source: NYC Mayor’s Office of Long-Term Planning and Sustainability
                                                                                                                                   When it does procure more power, it
                                                                                                                                   offers investors the security of long-term
                                                                                                                                   contracts in exchange for supply that
                                                                              Reducing demand: The Board would set                 is clean, affordable, and efficient.
                                                                              demand reduction targets as part of the              As a result, while developers are hesitant
                                                                              city’s overall energy plan, recommend fund-          to enter New York City’s volatile energy
INI tIAtIvE 1                                                                 ing levels and approve strategies for reach-         market, LIPA’s willingness to enter into
Establish a New York City                                                     ing those goals. A new authority will also be        long-term contracts spurred new power
                                                                              created dedicated to the coordination and            plants and transmission lines to serve
Energy Planning Board                                                         implementation of energy efficiency initiatives      Long Island.
We will work with the State and                                               in New York City.                                    “We realize how urgent it is to keep our
utilities to centralize planning for the                                         This authority, a partnership among the           rates and charges as low as possible,” said
city’s supply and demand initiatives                                          organizations involved with energy efficiency        Richard M. Kessel, LIPA’s CEO and President.         105
                                                                              programs in New York, would be responsible           “Since we make no profit on the sale of
There is a clear need for a more compre-                                      for developing plans to meet the Board’s targets.    electricity, we make every effort to do so.”
hensive, coordinated, and aggressive
planning effort, focused on the specific needs                                Expanding supply: The Board would also               Until 1998, Long Island residents got
of New York City. That is why we are pursuing                                 set supply targets and recommend a budget            their power from LILCO, a privately-owned
State legislation and regulation to establish a                               for spending on supply initiatives. The Board        corporation. After a financially-strapped
New York City Energy Planning Board. (See                                     would facilitate the supply of new clean power       LILCO saw its cost of debt skyrocket,
chart above: Proposed New York City Energy                                    to the city by enabling a process to issue long-     New York State’s Legislature stepped in,
Planning Board; see case study: Long Island                                   term contracts to energy supply developers.          creating LIPA to act as a single, coordinated
Power Authority)                                                              These contracts would provide a constant rev-        buyer. Over time, LIPA has lowered rates
                                                                              enue stream to pay off investment costs. As          by an average of 20%—the largest single
Functions                                                                     a result of this security, power plant owners        electric rate reduction in U.S. history.
Comprehensive planning: This entity’s                                         would be able to attract investors at better         LIPA also aims at balancing supply and
primary function would be to review and                                       financing rates.                                     demand side programs—further keeping
approve energy plans that include supply and                                     One way long-term contracts could be              prices down.
demand strategies to meet the city’s needs.                                   issued is for the State to empower the New
This plan would be submitted to the Public                                    York Power Authority (NYPA) or another exist-        LIPA’s Clean Energy Initiative (CEI) is
Service Commission (PSC) for regulatory and                                   ing entity to issue and award a power supply         one of the most ambitious programs of
funding approval.                                                             request-for-proposals (RFP) that reflects the        its kind in the nation. The CEI is a 10-year,
   To ensure that these plans are revised                                     city’s priorities and needs. NYPA already per-       $355 million commitment to promote energy
regularly, we will urge the State to pass a new                               forms this service for government institutions       efficiency and clean generation technolo-
energy planning law similar to Article VI, which                              located in the city, including our municipal         gies including the largest commercial solar
lapsed four years ago. Article VI required the                                government, the Metropolitian Transportation         project in the country.
periodic issuance of a State Energy Plan that                                 Authority (MTA), and the New York City Hous-         LIPA also rewards green energy choices,
assessed capacity needs and identified strate-                                ing Authority (NYCHA).                               encouraging customers to purchase
gies to meet or manage demand. We believe                                                                                          wind-generated power and soliciting
the law should additionally require the devel-                                Board structure: To ensure a range of                proposals from developers for renewable
opment of localized plans across the state,                                   perspectives and technical experience, the           resource projects.
and should take into account not only peak                                    proposed Board would include representa-
                                                                              tives from the City, the State, and the utilities.   “With each alternative or renewable energy
demand capacity, but also energy consump-                                                                                          project we advance,” Kessel said, “we take
tion, costs to rate payers, environmental                                        The City and State representatives would
                                                                              ensure that their respective public policy pri-      another step away from our over-dependence
impact, and greenhouse gas emissions.                                                                                              on fossil fuel burning technologies. Future
   In addition to overseeing the creation of                                  orities are reflected in the planning process.
                                                                              The City’s representative would also articulate      generations as well as our environment will
New York City’s energy plan, the Board would                                                                                       be the beneficiaries.”
recommend any necessary ratepayer charges                                     local community perspectives, including envi-
for the fulfillment of its plan to the PSC.                                   ronmental justice concerns.


                                                                                                                                                   A GREENER, GREATER NEW YORK PLANYC
               The representative from Con Edison would            lower Hudson Valley and Long Island, can
            leverage the company’s technical capa-                 affect the city. Reducing transmission conges-
            bilities, understanding of grid and reliability        tion could reduce prices in the city as well as
            issues, and familiarity with energy efficiency         regional CO2 and other emissions. Therefore,       INItIAtIvE 2
            programs to shape the city’s electricity and           the City will urge passage of a new State plan-    Reduce energy consumption
            steam plans. Both Con Edison and KeySpan               ning statute to accomplish these aims.
            would create their own plans for gas demand
                                                                                                                      by City government
            and supply.                                                                                               We will commit 10% of the City’s annual
            Additional regulatory changes to
                                                                                                                      energy bill to fund energy-saving
            promote coordination and to increase                                                                      investments in City operations
            investment                                             Reduce New York City’s                             New York City’s government spends nearly
            There are four additional regulatory changes
            that will help maximize the coordination
                                                                   energy consumption                                 $800 million a year on electricity, natural
                                                                                                                      gas, and heating oil—and consumes roughly
            between energy efficiency and supply efforts           The answer to meeting our city’s energy            6.5% of the city’s energy. Investments in LED
            and generate new funding sources.                      needs cannot simply be to add more supply.         stoplights and retrofits to City-owned build-
               Today, utilities like Con Edison profit from        For both environmental and economic rea-           ings have already saved the City money and
            the volume of energy consumed. In order                sons, our first step toward a comprehensive        reduced the City’s energy consumption. The
            to encourage greater participation with our            energy policy must be evaluating how to            opportunity exists to go much further—but
            energy efficiency efforts, we must sepa-               maximize our energy efficiency.                    the hurdle has always been the competing
            rate Con Edison’s profits from the amount of              Nationwide, energy efficiency efforts are       priorities that pit energy-saving investments
            energy used in the city and replace it with            focused on industry and automobiles, but in        against other uses of City funds.
            incentives for reducing demand.                        New York, our challenge is different—it is            That is why we will propose an amendment
               We will also advocate for the creation of a         primarily the buildings. Over two thirds of        to the City Charter requiring that New York
            forward capacity market, which pays upfront            our energy is used in buildings, compared to       City invest, each year, an amount equal to 10%
106         for future capacity. Under this system, devel-         a national average of less than one third.         of its energy expenses in energy-saving mea-
            opers can secure prices years in advance, cre-            And when buildings are mentioned, the           sures. These measures will include creating
            ating a level of financial assurance for backers       context is usually new construction. New           systems and tools to manage the energy use
            since they know their initial rates of return.         York City has emerged as a leader in green         of City buildings centrally; conducting routine
            This guarantee can also be applied to energy           buildings, with some of the world’s most           energy audits and tune-ups of City buildings;
            efficiency strategies; programs that pledge a          sustainable skyscrapers and affordable             retrofitting City buildings and improving main-
            peak reduction can secure payment as if they           housing developments. We have also estab-          tenance to save electricity and heating bills;
            were selling additional supply. The money can          lished new standards for new municipal             and converting streetlights to LEDs when the
            be invested into further efficiency efforts, pro-      buildings.                                         technology becomes available.
            viding a new revenue stream for reductions                But by 2030, at least 85% of our energy            With aggressive management and the
            into the future.                                       usage and carbon emissions will come from          funding that this amendment would provide,
               The Regional Greenhouse Gas Initiative, a           buildings that already exist today. Therefore,     we are committed to reducing the City gov-
            multi-state cap and trade program to reduce            we must focus our efforts on improving the         ernment’s energy consumption and CO2 emis-
            greenhouse gas emissions from power plants,            city’s large existing building stock.              sions by 30% within 10 years.
            could potentially bring millions of additional            If we ensure that energy-saving measures
            dollars to energy efficiency initiatives in New        in our existing buildings are incentivized—
            York. Starting in 2009, greenhouse gas cred-           and, later on, mandated—we can absorb
            its will either be given, sold or auctioned to         growth while keeping our power consump-
            generators. Generators that use less than              tion constant and reducing our heating fuels
            their allotted amount will be able to cash in          by 14%. This will result in seven million fewer
            the excess credits; those who need more will           tons of global warming emissions, and help         INItIAtIvE 3
            be able to buy them from the market. The               lower the city’s overall energy bill by $2 bil-    Strengthen energy and building
            City will continue to advocate that all of these       lion to $3 billion by 2015. (See table on facing
            credits are auctioned to power generators,             page: Energy Usage by Building Type in New
                                                                                                                      codes for New York City
            forcing power plants to purchase credits for           York City)                                         We will strengthen energy and
            each ton of carbon dioxide they produce. This             In addition to lowering energy usage on a       building codes to support our energy
            money could then be used to finance more               daily basis across the city, we must also find     efficiency strategies and other
            energy efficiency efforts.                             more effective ways to manage demand
               Finally, we will advocate for an energy plan-       during the periods of greatest need. Our
                                                                                                                      environmental goals
            ning law similar to Article VI, which lapsed four      power needs are assessed based on these            New York City is completing its first major revi-
            years ago, to be implemented on a statewide            “peak” moments; by keeping our peak                sion to the building code in nearly 40 years,
            level. This law would serve as a complement            demand constant, we can reduce the need            with adoption expected in summer 2007.
            to the New York City Energy Planning Board             to rely on the most polluting plants during        This will be followed by regular reviews and
            since energy planning for areas adjacent to            our hottest summer days and relieve the            updates of the code, to be conducted on a
            the New York metropolitan area, such as the            burden on our delivery grid.                       three-year cycle.


      ENERGY PROvIDE CLEANER, MORE RELIABLE POWER BY UPGRADING OUR ENERGY INFRASTRUCTURE
 Energy usage by building type in New York City                                                                                                                                    Electricity savings from
 Percent of total energy in British Thermal Units (BTU)                                                                                                                            Compact fluorescent light bulbs

  whAt wE uSE FOR ENERGY FOR
                                                                                                                                                            If you replace one standard light bulb with a CFL, you will save
                                                                                                                                                            $107 and 12 light bulb changes over the 9-year lifetime of the CFL
  buIldINg tYPE                        hEat      hot watEr         lIghtINg      aPPlIaNCEs*        CoolINg**               othEr              total

  1–4 family residential               7.6%            2.6%            1.7%            2.2%               0.6%               0.0%             14.7%         If all 3 million New York City households replace one standard light bulb
                                                                                                                                                            with a CFL, the energy savings would be enough to power three Empire
  Multi-family residential             7.4%            7.4%            3.0%            3.9%               1.2%               0.0%             22.0%         State Buildings

  Commercial                           8.5%            2.8%           10.2%            4.5%               4.5%               0.9%             31.4%         If all New York City households replace 75% of their standard light
                                                                                                                                                            bulbs with CFL bulbs, the energy savings would be enough to run all the
  Industrial                           2.6%            2.1%            4.0%            3.3%               1.1%               0.2%             13.0%         subways and light all the stations

  Institutional/government             6.3%            4.0%            3.6%            1.7%               1.4%               0.9%             17.9%        Assumptions
                                                                                                                                                           • Average standard (incandescent) light bulb uses 75 Watts and lasts for
  all tYPEs                          32.4%           18.9%            22.5%           15.6%               8.8%               2.0%              100%
                                                                                                                                                             750 hrs; equivalent CFL bulb uses 20 Watts and lasts for 10,000 hrs.
                                                                                                                                                           • Average of 15 incandescent light bulbs per household, each used 3
                                                                                                 Source: Con Edison; KeySpan; U.S. Department of Energy;
                                                                                               New York State Energy Research and Development Authority      hours per day
 *Appliances include electronics and refrigerators as well as other appliances
                                                                                                                                                           • Annual electrical consumption in NYC: 52,280 GWh
**Cooling includes ventilation as well as air conditioning




    While the new code will include a number                                                                                                               expanding peak load management programs;
 of green elements—including rebates for                                                                                                                   and undertaking an energy awareness and
 some green building features, requirements                                                                                                                training campaign. In all three of these, the
 for cool (white) roofs and energy code certi-                            INI tIAtIvE 4                                                                    City will begin working immediately through
 fication, and more stringent ventilation stan-                           Create an energy efficiency                                                      its existing institutions, but full implementa-
 dards—more can be done.                                                                                                                                   tion will require the coordination and funding
    We will make “greening the code” a cen-
                                                                          authority for New York City                                                      the Authority would provide.
 tral focus of the next revision cycle, with an                           We will create the New York City
 emphasis on implementing the city’s energy                               Energy Efficiency Authority responsible
 efficiency strategies, streamlining the process                          for reaching the city’s demand                                                                                                                                107
 for incorporating new, sustainable technolo-
 gies into construction, and adaptation to cli-
                                                                          reduction targets.
 mate change.                                                             There are currently a number of programs                                         INItIAtIvE 5
    Another area of focus will be reducing the                            that target demand reduction and energy effi-                                    Prioritize five key areas
 amount of cement used in concrete. Creating                              ciency in New York City, including NYPA and
 cement is an energy-intensive process that                               NYSERDA at the State level and Con Edison
                                                                                                                                                           for targeted incentives
 releases a ton of C02 for every ton of cement                            at the local level. But these efforts have not                                   We will use a series of mandates,
 produced. We will advocate for a different                               always been coordinated, and the City has not                                    challenges, and incentives to reduce
 form of concrete production that uses 30% to                             had the opportunity to play a more active role                                   demand among the city’s largest
 40% less cement while retaining strength.                                in either coordination or in shaping programs
    The next three years are also an opportu-                             of its own, beyond participating in Public
                                                                                                                                                           energy consumers
 nity to amend other codes influencing the                                Service Commission proceedings. This will                                        With 5.2 billion square feet of space parceled
 city’s energy efficiency, such as the State                              have to change if the city is going to achieve                                   into almost a million buildings, reining in the
 Energy Conservation Construction Code and                                unprecedented reductions in energy con-                                          energy consumption of New York’s building
 New York City’s Fire Code. While the State                               sumption.                                                                        sector presents a challenge of remarkable
 code is required to be amended every three                                  To that end, we propose to create the New                                     complexity and scale. (See table on following
 years, the process is often delayed and its                              York City Energy Efficiency Authority which                                      page: Key Areas for Targeted Energy Efficiency
 provisions are not adequately enforced. We                               will direct all of New York City’s efficiency                                    Initiatives; see case study on following page:
 will strengthen enforcement of these codes                               and demand reduction efforts. These efforts                                      Energy Efficiency Tools)
 and push for higher standards, particularly                              would be funded through rate-payer based                                            As described in the following table, our
 regarding lighting requirements. We will also                            surcharges. This would enable the City to                                        efforts will be focused around five key areas:
 seek to integrate sustainability considerations                          develop a unified effort that is well-tailored                                   institutional and governmental buildings, com-
 more fully into the City’s other codes, strik-                           to our unique circumstances. The Authority                                       mercial and industrial buildings, residential
 ing an appropriate balance between reduc-                                would be charged with developing and man-                                        buildings, new construction, and appliances
 ing implementation barriers while preserving                             aging programs and establishing the incentive                                    and electronics. We have focused primarily on
 safety standards.                                                        structures required to reach the city’s demand                                   upgrades to existing buildings, since they will
                                                                          reduction targets as set by the New York City                                    still form the overwhelming majority of our
                                                                          Energy Planning Board. The City, NYSERDA,                                        building stock by 2030.
                                                                          Con Edison, and Keyspan would serve on the                                          We have also singled out the largest
                                                                          Authority’s board—allowing the Authority to                                      sources of consumption for reforms, such as
                                                                          marshal coordinated action among these enti-                                     lighting and inefficient appliances. By replac-
                                                                          ties and utilize their resources.                                                ing outdated lighting systems with more
                                                                             The Authority’s first task would be to under-                                 energy-efficient models, working at the State
                                                                          take the three city-wide initiatives that follow:                                and Federal level to steadily improve stan-
                                                                          targeting five key areas for energy efficiency;                                  dards for appliances and electronics, and


                                                                                                                                                                                           A GREENER, GREATER NEW YORK PLANYC
             key areas for targeted Energy Efficiency Initiatives
                                                                                                                                   AvERAGE INvEStMENt                                   IMPACt
                                                                                                                                                                PaYbaCk to CoNsuMEr       % CItYwIdE ENErgY rEduCtIoN
                   kEY arEa           INItIatIvE wIth IllustratIvE ExaMPlEs                                                         bY owNEr* INCENtIvE**            aftEr INCENtIvE             bY 2015 (froM trENd)
                                      City Government to “Lead by example”:                                                            $400,000
                                      • 30% reduction in buildings and operations by 2017                                                                n.a.               7–8 yrs.                            1.5%
                                                                                                                                  (public school)
                                      • Achieved through audits/retrofits, lighting upgrades, and improved maintenance
                  govErNMENt &
             1    INstItutIoNal
                  30% by 2017         Mayoral Challenge to institutions, Federal & State Government                                    $880,000
                                      • Pledge to match the City government target by 2017                                           (300,000 sf     $470,000               5–6 yrs.                       1.3%–2.0%
                                      • Benchmarking & retro-commissioning or audit/retrofit (< 5-yr payback measures)                 hospital.)
                                      • Financial incentives from NYCEEA

                                      Efficiency Upgrades for large commercial & industrial buildings (>100,000 sq. ft.)               $220,000
                                      • Benchmarking & retro-commissioning or audit/retrofit (< 5-yr payback measures)               (300,000 sf     $120,000               2–3 yrs.                            1.8%
                  CoMMErCIal &        • Mandated by 2015; efficient buildings exempt                                                   building.)
             2    INdustrIal          • Financial incentives from NYCEEA
                  Upgrades & Lights
                                      Lighting Systems brought up to energy code                                                          $4,500       $2,500              1.5–2 yrs.                           2.1%
                                      • Required for all spaces at time of renovation or change of tenancy                           (10,000 sf.)

                                      Efficiency Upgrades for large residential buildings (> 50 units)                                  $39,000
                                      • Retro-commissioning or audit/retrofit (< 5-yr payback measures required)                     (100,000 sf      $21,000               2–3 yrs.                            1.1%
                                      • Mandated by 2015; efficient buildings exempt
                  rEsIdENtIal                                                                                                          building.)
             3                        • Financial incentives from NYCEEA




                                                                                                                                                                                                                        Source: NYC Mayor’s Office of Long-Term Planning and Sustainability
                  Upgrades & CFLs
                                      Large-Scale Direct Install Program for CFLs for all residential properties                 29,400–42,000          $150              Immediate                             1.5%
                                      • Free replacement of incandescent bulbs for 180,000 units per year (voluntary)

                                      New construction to Exceed Energy Code by 20%; major renovation by 15%                           $500,000
                                      • Commissioning for new construction or major renovation > 100,000 sq. ft.                     (200,000 sf          $0                3–4 yrs.                            0.8%
                  NEw                 • Aggressive upgrades and enforcement of State energy code                                       building.)
             4    CoNstruCtIoN
                  15-20% Better
                  than Code           Graduated Incentives for higher energy savings & environmental performance                       $625,000      $125,000               3–4 yrs.                            0.3%
                                      • For gold or platinum LEED equivalent with superior energy and water savings

                                      Incentivize high Efficiencies for appliances, electronics, and air conditioners
                                      • Sales and stocking incentives to retailers and distributors                                         $0***       $110              Immediate                             1.0%
                  aPPlIaNCEs &        • Incentivize efficient washer/dryers in apartment buildings
             5    ElECtroNICs
                  Incentives &        Work at State & Federal level for improved standards for appliance and electronics
                  Standards           • Monitor and comment on Federal rule-making on EPCA settlement                                         n.a.       n.a.                                                   0.3%
                                      • Propose streamlining the State process for setting appliance standards

            *After incentive **Incentive by the proposed New York City Energy Efficiency Authority *** No additional cost after incentive                                               total           12.7%–13.4%
108

            CASE STUDY
            Energy Efficiency Tools                                                    leveraging renovations to enforce our energy
                                                                                       code more vigorously, we can achieve enor-
            There are three key tools to comprehen-                                    mous savings—in our usage and energy bills.
            sively reduce energy consumption in                                        (See table on previous page: Electricity Sav-                       INItIAtIvE 6
            buildings: audits, retrofits and commis-                                   ings from Compact Florescent Light Bulbs)                           Expand peak load management
            sioning. An energy audit analyzes how                                         For private sector change, government has
                                                                                       three basic tools in its arsenal: challenges,
                                                                                                                                                           We will seek to cut peak load by 25%
            changes in equipment, fixtures and
            design can reduce energy use. The                                          requirements, and incentives. We will be able                       through increased enrollment in peak
            implementation of those changes is
                                                                                       to use all three, sometimes within the same                         load management programs and real
                                                                                       targeted area. In many cases, such as the                           time pricing
            called a retrofit and often involves the                                   energy upgrades for large commercial and
            physical upgrade of building energy                                        industrial buildings, we will incent behavior to                    Reducing our daily energy usage is critical to
            systems and components. Retrofits,                                         encourage early adoption and then mandate                           achieving our 30% carbon reduction goal and
            depending on the scope of work, can                                        compliance by 2015. We will also challenge                          saving money on energy across the city.
            be designed to pay for themselves                                          the city’s leading non-profit and commercial                           But special measures must be taken to
            through the resulting energy savings,                                      building owners to match the City’s commit-                         manage electrical power usage during the
                                                                                       ment to cut its own energy use by 30% in 10                         hottest days of the year, when air condition-
            with a three to seven year typical
                                                                                       years. The City’s commitment will not only set                      ers are running on high and our power usage
            payback. Retrofits can involve any                                                                                                             is at its peak. At these times, our electric grid
                                                                                       an example, but also help incubate the exper-
            component of the building, but usually                                     tise required for the larger citywide transfor-                     is strained and our oldest and least efficient
            focus on lighting and heating and                                          mation. This, in turn, will reduce the costs of                     plants must run to meet the city’s demand.
            cooling systems.                                                           these measures for all.                                             These power plants guzzle 62% more fuel and
            Commissioning for new buildings,                                              Every energy-saving measure included                             release 140% more CO2 than newer plants.
                                                                                       is cost-effective, with paybacks within five                        They are also more expensive to run. Our new,
            and retro-commissioning for existing
                                                                                       years or less. And by prioritizing the largest                      natural gas power plants cost $74 to produce
            buildings, refer to a process of insuring                                                                                                      one MWh, while our oldest plants, which were
                                                                                       buildings first, the maximum impact will be
            that a building’s equipment is installed                                   achieved with minimal complexity.                                   designed in the 1960s and 1970s and run
            correctly and operating at maximum                                                                                                             on oil, cost over $250 to produce the same
            efficiency. These strategies are most                                                                                                          amount of electricity.
            effective when combined with improved                                                                                                             Peak load management programs are
            maintenance. Commissioning typically                                                                                                           one way to balance electricity supply with
            pays for itself within a year; retro-                                                                                                          demand, reduce the strain on the grid and
            commissioning within two to three years.

      ENERGY PROvIDE CLEANER, MORE RELIABLE POWER BY UPGRADING OUR ENERGY INFRASTRUCTURE
      real-time Pricing Impact on Electricity Consumption*                                                                                                                                                                                                                       CASE STUDY
              REAL TIME PRICING PILOT
    Electricity Consumption in Real Time Pricing NEW YORK CITY TOTAL
                                                 Pilot vs.                                                                                 $              DAY AhEAD MARKET PRICE OF ENERGY                                                                                       Real-Time Pricing in New York
              IN KILOWATTS                       IN MEGAWATTS
          Total NYC Consumption on August 1, 2006                                                                                                                                                                                                                                Ellen Funk loads the dishwasher after dinner,
                800
                                                                                                                                                                                                                                                                                 and then she waits until 7 am the next day to
                                                                                                                                                                                                                    12000
                                                                                                                                                                                                                                                                                 turn it on.
                700
                                                                                                                                                                                                                    10000                                                        “Running the dishwasher after dinner costs
                600                                                                                                                                                                                                                                                              five times as much as turning it on in the
                                                                                                                                                                                                                    8000                                                         morning,” Funk said. “Why wouldn’t I wait?”




                                                                                                                                                                                                                                       Source: Energy Investment Systems, Inc.
                500




                                                                                                                                                                                                                           MEGAWATTS
    KILOWATTS




                                                                                                                                            $480 peak                                                                                                                            Funk is a resident of 322 Central Park West,
                400                                                                                                                     $471                                                                        6000
                                                                                                                                                                                                                                                                                 the first of four buildings across New York
                                                                                                                                                   $437
                300                                                                                            $200                                                                       $172
                                                                                                                                                                                                                                                                                 City to volunteer for a real time pricing
                                                                                                                                                                                                                    4000
                200                                                                 $116                                                                                                                                                                                         program. Real-time pricing uses sophisti-
                                    $104                     $99                                                                                                                                                    2000
                                                                                                                                                                                                                                                                                 cated metering—which 322 CPW installed
                100                                                                                                                                                                                                                                                              in 2002—to track the energy usage of
                  0                                                                                                                                                                                                 0                                                            building residents. Most homes have meters
                                                                                                                                                                                                                                                                                 that are read monthly, but Funk knows how


                                                                                                                                 2 pm




                                                                                                                                                                                   8 pm
                                                                                                                                                           5 pm




                                                                                                                                                                                                    10 pm
                                                                                                                                                   4 pm
                                               4 am




                                                                                                                                                                                          9 pm
                                                             6 am




                                                                                                       11 am
                                                      5 am




                                                                                                                                                                            7 pm
                      1 am


                                    3 am




                                                                             8 am
                             2 am




                                                                                               10 am
                                                                      7 am




                                                                                                                                                                  6 pm
                                                                                                                                        3 pm
                                                                                                               12 pm
                                                                                    9 am




                                                                                                                                                                                                            11 pm
                                                                                                                          1 pm
                                                                                                                                                                                                                                                                                 much her electricity costs her every hour.
                      *on August 1, 2006
                                                                                                                                                                                                                                                                                 “I think everyone will buy power this way
Source: Not given in data sheet
                                                                                                                                                                                                                                                                                 in the next ten years,” said Lewis Kwit,
                                                                                                                                                                                                                                                                                 President of Energy Investment Systems
      limit the use of the more expensive and often                                                                         overall energy consumption by 5%. We will also                                                                                                       (EIS), who manages the building’s energy-
                                                                                                                                         $470.70
                                     $103.84




                                                                                     $116.19




                                                                                                                $200.54




                                                                                                                                                                  $436.99




                                                                                                                                                                                          $171.77
                                                             $99.27




      least efficient plants. The following initiatives                                                                     challenge all other institutional, State, and                                                                                                        conserving initiative.
      could enable 25% of our peak demand to be                                                                             Federal agencies located in the city to partici-                                                                                                     Monthly bills inform 322 CPW residents of
      shaved from the electric load.                                                                                        pate in peak load programs and increase their                                                                                                        their daily usage trends, and color-coated
                                                                                                                            overall impact.                                                                                                                                      seasonal bulletins tell them what to expect
      We will seek to expand participation                                                                                                                                                                                                                                       at various hours in the coming months.
      in peak load management programs                                                                                      We will support expansion of real-time                                                                                                               Peak rates—often found in the hours when
                                                                                                                            pricing across the city                                                                                                                              everyone gets home from work—represent
      through smart meters                                                                                                                                                                                                                                                       about 25% of a building’s total bill. The more
      In peak load management programs, custom-                                                                             Currently, consumers are able to make                                                                                                                residents conserve energy use during peak            109
      ers agree to reduce their electricity load on                                                                         informed choices about when to use their cell                                                                                                        hours, the more money they save.
      the hottest days—either by using less elec-                                                                           phones; in peak times, they know that minutes
                                                                                                                                                                                                                                                                                 According to research done at Carnegie
      tricity or by using alternative sources of gen-                                                                       will cost more than off-peak hours and can
                                                                                                                                                                                                                                                                                 Mellon University and reported by The New
      eration. Participants are paid for enrollment                                                                         adjust their behavior accordingly. Although
                                                                                                                                                                                                                                                                                 York Times, American consumers would save
      and/or for responding during a peak event.                                                                            energy prices fluctuate just as much over the
                                                                                                                                                                                                                                                                                 nearly $23 billion a year if they shifted just
      Already, the customers enrolled can collec-                                                                           course of a day, this information is almost
                                                                                                                                                                                                                                                                                 7% of their usage during peak hours to less
      tively reduce the city’s peak load by appoxi-                                                                         entirely unavailable to the vast majority of
                                                                                                                                                                                                                                                                                 expensive times—the equivalent of the whole
      mately 500 MW—or 4% of the peak electric                                                                              New Yorkers. (See chart above: Real-Time
                                                                                                                                                                                                                                                                                 nation getting a free month of power every
      demand in the city.                                                                                                   Pricing Impact on Electricity Consumption; see
                                                                                                                                                                                                                                                                                 year. Several real time pricing pilots are
         We can measure their impact because par-                                                                           case study: Real-Time Pricing in New York)
                                                                                                                                                                                                                                                                                 happening throughout the country, including
      ticipants have installed a more sophisticated                                                                            If customers were able to see the costs of
                                                                                                                                                                                                                                                                                 projects in Illinois, Florida, and California.
      metering system that allows buildings to track                                                                        electricity at different times, they could make
                                                                                                                            more educated decisions about when and                                                                                                               The program at 322 CPW not only helps
      their own energy use—and sometimes the
                                                                                                                            how they use electricity throughout the day.                                                                                                         residents save money, it also allows them
      energy consumption of individual tenants—in
                                                                                                                            This is known as Real-Time Pricing (RTP).                                                                                                            to conserve energy when utility companies
      real-time. But these meters can be costly: a
                                                                                                                               Although the State initiated a residential                                                                                                        need it most. This could mean the difference
      standard meter costs around $30, while smart
                                                                                                                            RTP pilot program between 2004 and early                                                                                                             between a brownout and a sufficient
      meters range from $100 to $600.
                                                                                                                            2006, it has not provided incentives for any                                                                                                         energy supply.
         Although enrollment has increased by 7%
      over each of the past three years, full partici-                                                                      additional pilots since 2005.                                                                                                                         “When New York expects a power emergency,
      pation is not realized due to the high cost of                                                                           The City will advocate for new incentives                                                                                                         our buildings are notified,” said Kwit. “And
      smart meters and the fact that entrance is                                                                            to expand RTP pilots in the city and encour-                                                                                                         they respond.”
      mostly limited to the largest electricity con-                                                                        age residential participation, with the goal                                                                                                         Last summer, there were five blackout
      sumers, such as large commercial and indus-                                                                           of enrolling 50% of small businesses and resi-                                                                                                       alerts in New York. During the heat-wave in
      trial buildings.                                                                                                      dents by 2015. In addition, the City will push                                                                                                       July 2006, when parts of Queens went dark
         To overcome these challenges and allow                                                                             the PSC to mandate that 100% of medium and                                                                                                           for days, 322 Central Park West cut their
      for wider enrollment in the peak load man-                                                                            large non-residential customers enter RTP                                                                                                            energy use by 42% and sold the unused
      agement programs, the City will urge the PSC                                                                          programs over the same time frame.                                                                                                                   capacity for $3,000.
      to approve Con Edison’s plan to install smart                                                                                                                                                                                                                              “The people in our building feel really good
      meters in every building by 2014.                                                                                                                                                                                                                                          about the program,” said Funk. “It’s been a
         The City will work with NYPA and Con                                                                                                                                                                                                                                    big success.”
      Edison on installing smart meters in all
      City-owned buildings before 2014. This
      could result in a 4% decrease in City govern-
      ment’s peak energy usage, while reducing



                                                                                                                                                                                                                                                                                                 A GREENER, GREATER NEW YORK PLANYC
                                                                                                                                                                                         CO2 INTENSITY OF NYC GENERATING FLEET


                                                                                                                                                                                                                                                                                Energy Prices Compared by Region
          average Energy Consumed to                                                                                         average greenhouse gas Emissions of City Power Plants                                                                                                                                                                         Electricity Prices across the region
          Produce 1kwh of Electricity*                                                                                                                            2500                                                                                                                                                                                                                 NEW YORK                hUDSON                  NEW




                                                                                                                     POUNDS OF CARBON DIOXIDE PER MEGAWATT HOUR
                                                                                                                                                                                                                                                             2,250                                                                                                                     CITY                    vALLEY                  JERSEY




                                                                                                                                                                                                                                                                                     Source: Con Edison, KeySpan, New York State Energy Research
                              14000                                                                                                                                                                                               2,150




                                                                                                                                                                                                                                                                                     and Development Authority and U.S. Department of Energy
                                                       12,000                                                                                                                                                                                                                                                                                                               100
                                                                                                                                                                  2000
                              12000
                                                                                                                                                                                                                  1,700                                                                                                                                                          90
                                                                                                                                                                                                                                                                    NYC




                                                                      Source: NYC Economic Development Corporation
                              10000                                                                                                                                                                                                                                                                                                                                              80




                                                                                                                                                                                                                                                                                                                                                       PRICE PER MEGAWATT HOUR
                                                                                                                                                                  1500
      BRITISH THERMAL UNITS




                                                                                                                                                                                          1,350
                                         8,100                                                                                                                                                                                                                                                                                                                                   70
                               8000
                                                                                                                                                                            950                                                                                                                                                                                                  60




                                                                                                                                                                                            GAS STEAM TURBINE
                                                                                                                                                                  1000                                                                                     Hudson




                                                                                                                                                                                                                                   OIL STEAM TURBINE
                               6000                                                                                                                                                                                                                         Valley




                                                                                                                                                                                                                                                              OIL GAS TURBINE
                                                                                                                                                                                                                                                                                                                                                                                 50




                                                                                                                                                                                                                   GAS TURBINE
                                       LESS THAN      MORE THAN                                                                                                                                                                                                                                                                                                                  40




                                                                                                                                                                          CYCLE GAS
                                        30 YEARS      30 YEARS




                                                                                                                                                                          COMBINED
                               4000                                                                                                                               500




                                                                                                                                                                                                                                                                                                                                                                                                                                              Source: Energy velocity
                                                                      and ICF Consulting




                                                                                                                                                                          TURBINE
                                          OLD            OLD
                                                                                                                                                                                                                                                                                                                                                                                 30
                               2000                                                                                                                                                                                                                                                                                                                                              20
                                                                                                                                                                    0                                                                                                NJ*

                                  0                                                                                                                                                                                                                                                                                                                                              10
                                                                                                                                                                                                                                                       *footnote TK
                                                                                                                                                                         PERCENtAGE OF IN-CItY POwER SuPPLY                                                                                                                                                                       0
          *Based on 2006 capacity factors
                                                                                                                                                                                        Gas Steam                                Oil Steam                  Oil Gas                                                                                                                   2000   2001   2002     2003    2004     2005    2006
           and reported heat rates for all                                                                                                                                  CCGT                                Gas Turbine
                                                                                                                                                                                         Turbine                                  Turbine                   Turbine
           in-city plants                                                                                                                                                                                                                                                                                                                                                        Price is wholesale, does not include delivery, surcharges,
                               Note: Based on 2006 capacity factors and reported heat rates for all in-city24%
                                                                                                            plants                                                                          27%                    20%             20%                        10%
                               Source: NYCEDC power plant database; ICF Consulting;                                                                                                                                                                                                                                                                                              or taxes. Energy Velocity
                                                                                                                                                                                                                                                                                                                                                                                     Source:
                               Extrapolation based on NYISO Reliability Needs Asessement, October 2005                                                                                Source:ConEd, Keyspan, NYSERDA, EIA (DOE) website, team analysis




                                                                                                                                                                                      We will make energy usage in buildings                                                                                                                       and enable us to retire 1,000 to 2,100 MW of
                                                                                                                                                                                   more transparent by encouraging building                                                                                                                        capacity. Between now and 2015, the City
                                                                                                                                                                                   owners to file an Environmental Protection                                                                                                                      will mostly rely on conventional, clean
                                  INI tIAtIvE 7                                                                                                                                    Agency Portfolio Manager survey, a web-                                                                                                                         energy sources to increase supply, but we
                                  Launch an energy awareness                                                                                                                       based energy usage breakdown for buildings.                                                                                                                     will work to set the stage for renewable
                                                                                                                                                                                   This will enable us to analyze consumption                                                                                                                      energies such as solar, wind, and tidal power
                                  and training campaign                                                                                                                            patterns, and adapt our efficiency strategies                                                                                                                   to play a larger role in the future. (See charts
                                  We will increase the impact of our                                                                                                               to have the maximum impact.                                                                                                                                     above: Average Energy Consumed to Produce
                                  energy efficiency efforts through                                                                                                                   Finally, we will establish a process to mea-                                                                                                                 1kWh of Electricity and Average Greenhouse
110                               a coordinated energy education,                                                                                                                  sure and verify the progress of each demand                                                                                                                     Gas Emissions of City Power Plants)
                                                                                                                                                                                   reduction initiative to establish credibility,
                                  awareness, and training campaign                                                                                                                 facilitate consensus about the most cost-effec-
                                  The cost savings of efficiency strategies                                                                                                        tive procedures, and fine-tune our policies to
                                  are clear. In many cases, the programs and                                                                                                       achieve greater effectiveness over time.
                                  opportunities already exist. But unless the
                                  public and building professionals appreciate                                                                                                                                                                                                                                                                     INItIAtIvE 8
                                  the urgency, are informed about the choices
                                                                                                                                                                                                                                                                                                                                                   Facilitate repowering and
                                  ahead, and understand the savings they can
                                                                                                                                                                                                                                                                                                                                                   construct power plants and
                                                                                                                                                                                   Expand the city’s
                                  achieve, we will not meet our goal.
                                     As a result, the New York City Energy                                                                                                                                                                                                                                                                         dedicated transmission lines
                                  Efficiency Authority will undertake exten-                                                                                                       clean power supply                                                                                                                                              We will facilitate the construction
                                  sive education, training, and quality control
                                                                                                                                                                                   Flattening consumption will not happen                                                                                                                          of 2,000 to 3,000 MW of supply
                                  programs to promote energy efficiency. The
                                  City will begin to undertake these efforts                                                                                                       overnight. Despite our efficiency efforts,                                                                                                                      capacity by repowering old plants,
                                  through a series of partnerships until the                                                                                                       by 2015 we will need at least 900 MW of                                                                                                                         constructing new ones, and building
                                                                                                                                                                                   new generating capacity just to keep up
                                  Authority is established.
                                                                                                                                                                                   with rising demand and expected power
                                                                                                                                                                                                                                                                                                                                                   dedicated transmission lines
                                  Education: In partnership with schools, mar-                                                                                                     plant retirements.                                                                                                                                              Achieving clean and reliable energy will
                                  keting professionals, and non-profit organiza-                                                                                                      But to achieve New York’s environmental                                                                                                                      require upgrading, expanding, and replacing
                                  tions, we will develop customized awareness                                                                                                      goals and lower our energy bills, we must                                                                                                                       much of our current energy supply. Between
                                  campaigns tailored to specific sectors of the                                                                                                    go beyond merely closing the gap between                                                                                                                        now and 2015, the City will pursue three strat-
                                  public, including the press, schoolchildren,                                                                                                     supply and demand. To accelerate the retire-                                                                                                                    egies to increase supply from cleaner power
                                  and those in the building trades.                                                                                                                ment of the city’s oldest, most polluting                                                                                                                       plants. (See chart above: Electricity Prices
                                  Training: The effectiveness of each strategy                                                                                                     power plants and address environmental                                                                                                                          Across the Region; see case study on facing
                                  will depend on its proper implementation.                                                                                                        justice issues, we must generate enough                                                                                                                         page: East River Repowering)
                                  That’s why we will also create training pro-                                                                                                     supply to compensate for that loss of power.                                                                                                                       First, we can maximize existing power
                                  grams for building operators, builders, design-                                                                                                  In addition, we must also increase supply                                                                                                                       plant sites, either by building additional gen-
                                  ers, retailers, and energy service providers to                                                                                                  to make our prices more competitive with                                                                                                                        eration facilities within the existing site or
                                  ensure that building practices reflect the most                                                                                                  the region.                                                                                                                                                     modernizing the plant’s technology. This pro-
                                  energy-efficient strategies.                                                                                                                        To accelerate the retirement of the older,                                                                                                                   cess, known as “repowering” can increase
                                                                                                                                                                                   less efficient plants we will build 2,000 to                                                                                                                    efficiency up to 40% and significantly reduce
                                  Quality Control: Building owners must be con-                                                                                                    3,000 MW of new electric capacity by as                                                                                                                         greenhouse gas emissions. Replacing old tur-
                                  fident that they will receive the expected energy                                                                                                early as 2015. The new, efficient plants will                                                                                                                   bines will also improve local air quality. The
                                  savings. That’s why we will establish a certification                                                                                            displace generation from older plants, help                                                                                                                     City will explore opportunities to facilitate
                                  process for energy auditors, commissioning                                                                                                       drive down prices in the wholesale market,                                                                                                                      in-city repowering that offers significant addi-
                                  agents, and contractors performing retrofits.

          ENERGY PROvIDE CLEANER, MORE RELIABLE POWER BY UPGRADING OUR ENERGY INFRASTRUCTURE
                                                                                                                                                                 Source: Con Edison
tional capacity and achieves immediate local         can result in substantial cost savings; new
air quality improvements.                            projects that integrate Clean DG can earn back
    Our second option is to build new plants         their investment in three to five years, while
on new sites. New construction costs about           existing buildings can cover costs in approxi-
the same or less than repowering, but land           mately five to eight years.
is limited and construction costs in New York           But this technology is not always com-
City remain high compared to the surrounding         patible with our existing grid. As a result,
region.                                              Con Edison sometimes limits the amount
    Our final option is to build power plants out-   of DG that can be connected. Applications
                                                                                                          CASE STUDY
side city limits that are completely dedicated       that meet the reliability requirements estab-
                                                                                                          East River Repowering
to providing electricity to the New York City        lished by the PSC must still undergo a lengthy
grid. By controlling the types of plants con-        11-step connection process that can take             In April 2005, Con Edison completed
structed and connecting those plants directly        months to complete. Lastly, permit applica-          a massive repowering project involving
to the city grid, we can ensure that we do not       tions to the City have also caused delays for        a complex choreography of equipment,
import energy from dirtier sources such as           Clean DG projects.                                   experts and energy—steam, to be exact.
conventional coal plants.                               The City will work with Con Edison and rel-       The company’s East River steam generating
    All three of these options will provide          evant agencies to reduce the financial, techni-      facility, for years the target of community
a cleaner energy supply that is also cheaper         cal, and procedural barriers related to inter-       criticism about the high level of emissions,
to run. Through the New York City Energy             connection in order to achieve, at minimum,          underwent an extensive program of
Planning Board described above, we will help         800 MW of Clean DG by 2030.                          operational enhancements, equipment
facilitate the issuance of long-term contracts          We will work with Con Edison to expand the        upgrades, and reduced oil burning in favor
to encourage new plants that are sensitive           amount of Clean DG that can be safely con-           of clean natural gas.
to communities.                                      nected to the grid.                                  As a result, the facility now is one of the
    We will also work actively with a broad             This spring, Con Edison will be filing with the   cleanest power generating facilities in
range of community stakeholders to advo-             PSC for a change in the rates that they charge       New York State.                                       111
cate for the re-enactment of Article X, which        customers. The City will use this opportunity
                                                                                                          Steam—which can be used in some cases
established a single streamlined process for         to advocate that Con Edison study the capac-
                                                                                                          instead of electricity—is an efficient way to
reviewing all permitting and siting issues for       ity of individual networks to handle more DG
                                                                                                          cool a building. Steam cooling in New York
power plants.                                        without impacting network reliability and
                                                                                                          is especially valuable because Con Edison’s
                                                     power quality. During the same rate case,
                                                                                                          nine central steam plants currently replace
                                                     the City will also ask Con Edison to study new
                                                                                                          the need for 375 MW of electricity, which
                                                     technologies that would increase the amount
                                                                                                          helps to reduce the city’s peak demand on
                                                     of Clean DG that can be safely connected to
                                                                                                          the hottest summer days.
                                                     the grid.
INI tIAtIvE 9                                           In addition, to improve communications            The East River repowering helped expand
                                                                                                          the city’s steam supply, enabling the plant
Expand Clean Distributed                             between Con Edison and prospective devel-
                                                                                                          to produce 25% more steam per hour.
                                                     opers of Clean DG, the City will push for Con
Generation (“Clean DG”)                              Edison to develop an on-line interconnection         But while repowerings lower emissions
We will increase the amount of                       application tracker that clearly shows what          and increase efficiency, they come at a high
Clean DG by 800 MW                                   stage interconnection applications are in and        cost. All of the new equipment must be
                                                     sends automatic alerts when delays occur.            installed within the existing parameters
Not all power generation has to occur at cen-
                                                                                                          of the building, while the old equipment
tral power plants. Mini-power plants located
                                                                                                          continues operating.
close to or at the site of use, referred to as       We will promote opportunities to
                                                                                                          To solve these challenges, most of the
distributed generation (DG), currently con-          develop district energy at appropriate               large machinery—including two dual-fuel
tribute 180 MW to our supply. Clean DG uses
clean fuels, such as natural gas, and is a more
                                                     sites in New York City                               combustion turbines and two heat-recovery
efficient form of energy production because          In 2005, Con Edison analyzed the projected           steam generators—had to be constructed
the energy travels a shorter distance to its         energy needs of the Hudson Yards Redevel-            off-site, shipped to the plant on a barge,
destination, retaining up to 8% more energy.         opment Area. It found that extending the             and then lifted over the FDR Drive and
Clean DG can be even more efficient when it          existing steam infrastructure used for heat-         lowered into the building through openings
utilizes the waste heat from electrical genera-      ing in Manhattan below 96th Street to reach          in the roof and walls.
tion to create hot water, heating, and cooling       the Hudson Yards area would be prohibitively         We will encourage additional repowerings,
for buildings, so it is often called Combined        expensive—but district energy may be a               especially at Con Edison’s steam plant
Heat and Power (CHP). CHP can be done on a           viable alternative.                                  on hudson Avenue in Brooklyn. We will
building level or developed as a “mini-grid” for         At the City’s urging, Con Edison is currently    also support the expansion of steam as
multiple buildings within a small area, known        overseeing a more extensive analysis of the          a power source for the city by expanding
as “district energy.”                                economic and technical feasibility for a dis-        the existing discount program to steam.
   As a result, Clean DG can produce twice           trict energy project in the Hudson Yards area.
as much energy for the same amount of fuel           If the study finds that district energy is feasi-
used by older conventional power plants. This        ble, the City will seek to implement a district

                                                                                                                           A GREENER, GREATER NEW YORK PLANYC
            energy plan through Con Edison or indepen-             regulatory authorities for additions to our        solar energy is most available when the city
            dent developers.                                       natural gas infrastructure. Currently, there are   needs it most—during hot, sunny days.
               In addition, we will require through the            several active proposals for pipeline projects         Estimates of solar potential by Columbia
            building code that new developments larger             and liquefied natural gas (“LNG”) terminals        University, the City University of New York,
            than 350,000 square feet across the city com-          that would expand our access to gas.               and NYSERDA range from 6,000 MW to over
            plete an analysis on the technical and eco-                Given how critical new natural gas infra-      15,000 MW, with one study claiming solar can
            nomic feasibility of installing CHP. This analy-       structure is to our long-term energy secu-         contribute 18% of peak load by 2022. But solar
            sis will help building owners understand the           rity, the City will support the development of     energy is still not as cost-effective as gas-
            benefits of CHP and help accelerate transfor-          new infrastructure projects that are designed      fired electricity. And New York City is uniquely
            mation of the CHP market.                              to be sensitive to environmental and commu-        expensive: our taller buildings require more
                                                                   nity needs.                                        wires and cranes to carry equipment to roof-
                                                                                                                      tops, while extensive interconnection require-
                                                                                                                      ments and inspections delay implementation.
                                                                                                                      For these reasons, installed costs for solar are
                                                                                                                      approximately 30% higher than in New Jersey
            INI tIAtIvE 10                                                                                            and 50% higher than in Long Island.
                                                                                                                          As a result, even with incentives from the
            Support expansion of                                   INI tIAtIvE 11
                                                                                                                      Federal government and the State, the City
            natural gas infrastructure                             Foster the market                                  has only been able to achieve 1.1 MW of solar
            We will support critical expansions                    for renewable energy                               capacity. To ensure solar meets its long-term
            to the city’s natural gas infrastructure               We will provide incentives and reduce              potential to contribute more significantly to

            New power plants and expanded Clean DG
                                                                   barriers to renewable energy and                   our supply, we must employ a range of strate-
                                                                                                                      gies to develop a more competitive market.
            will both require the use of natural gas, the          pilot emerging technologies
            cleanest-burning fossil fuel. Already, natural
112         gas fuels 80% of our power plants and more
                                                                   Renewable energy is derived from emission-         We will create a property tax abatement
                                                                   free and seemingly unlimited sources such as
            than a quarter of all energy used in build-            solar, wind, and hydroelectric power. Over the
                                                                                                                      for solar panel installations
            ings—and in the coming decade its use will             long-term, renewable energy has the potential      In order to spur the market in the private
            continue to rise.                                      to play a significant role in our energy supply.   sector and help achieve needed economies of
               But there are two challenges to reliable,           (See case study on facing page: Tidal Power in     scale to bring down prices, New York City will
            affordable supply of natural gas in New York.          New York City)                                     offer a property tax abatement for solar instal-
               Four long pipelines carry natural gas into             New York State is a leader in renewable         lations. The incentive will cover 35% of instal-
            the city, extending from the Gulf of Mexico            power, with extensive hydroelectric and wind       lation costs for the first three years of the pro-
            and the Canadian border. On the hottest and            resources already located upstate, and several     gram, with the incentive scaling back to 20% in
            coldest days of the year, our demand already           major wind farms currently under develop-          years four and five. The graduated structure of
            exceeds the capacity of these pipelines by up          ment. The State has also committed to ensure       this incentive will grant early adopters greater
            to 1.2 billion cubic feet. We have been able to        that 25% of its energy comes from renewable        benefits, ensuring that a market is established.
            ensure reliable heating and power by keep-             sources by 2013.                                      In addition, the City will study the cost-
            ing enough gas in storage to cover this gap,              Today, New York City receives over 6% of its    effectiveness of solar electricity when evalu-
            but as demand continues to increase it will            electricity from the State’s renewable energy      ated under a Real Time Pricing scenario. The
            become more difficult to meet the need.                resources. In addition, the City recently com-     City will also support the construction of the
               This delivery constraint leaves us vulnerable       mitted to purchase 20 MW of wind for City          city’s first carbon neutral building. This build-
            to any disruptions along the pipelines or unex-        government operations starting in 2008. This       ing, located along the East River, will be pow-
            pected temperature swings. New York already            agreement helped support the development           ered primarily by solar energy.
            has some of the highest natural gas prices in          of a second phase of a 107 MW wind farm
            the nation. But when cold weather strikes, the
            spike in demand propels prices even higher.
                                                                   upstate. New York City consumers also have         We will increase use of solar
                                                                   the opportunity to further support the market
            For example, during a cold snap in Febru-              for upstate wind and other renewables by
                                                                                                                      energy in City buildings through
            ary 2003, natural gas prices went from $7.50           selecting green power as their energy source.      creative financing
            to $28/MMBtu in one day and momentarily                   If we expand our reliance on renewable          Since City facilities are not eligible for
            reached $40/MMbtu. While other regions in              energy, we could help secure our energy            NYSERDA incentives or tax credits, the eco-
            the Northeast and Midwest were experienc-              supply, reduce our greenhouse gas emissions        nomics for public solar projects are even more
            ing a similar cold front, the price impact was         and improve air quality.                           difficult than in the private sector. In order
            not nearly as dramatic.
                                                                   Solar energy                                       to facilitate solar projects on City buildings,
               As the demand for heat and power grows,
                                                                                                                      we will release an RFP to attract private solar
            these problems will only get worse—unless              Of all the renewable energy sources, solar cur-
                                                                                                                      developers to build, own, operate, and main-
            we take action to expand our natural gas               rently has the greatest potential to generate
                                                                                                                      tain the panels on City buildings. The City will
            supply. That’s why we will support siting and          electricity within the five boroughs. The tech-
                                                                                                                      enter into a long-term contract with the devel-
            permitting applications to the Federal Energy          nology is commercially available, our abun-
                                                                                                                      oper to purchase the solar energy generated
            Regulatory Commission and other relevant               dant roofs offer ample space for panels, and
                                                                                                                      by these panels.


      ENERGY PROvIDE CLEANER, MORE RELIABLE POWER BY UPGRADING OUR ENERGY INFRASTRUCTURE
CASE STUDY
Tidal Power in New York City
A thin sliver of the East River between Queens     “It’s the depth and strength of the current         If the project is successful, the East River
and Roosevelt Island looks just as it did a year   in New York’s waterways that makes them             could become home to 300 turbines, providing
ago. But there’s an important difference under     turbine-friendly,” said Mollie Gardner, a           10 MW of renewable energy for New York City,
the river’s surface. Today, turbines in the        geologist who works with verdant Power.             enough to power up to 8,000 homes. That
water’s depths are testing the river’s ability     “The water is perfect.”                             power could displace the equivalent of 68,000
to harness the tide, creating a powerful kind      Not only is the water itself perfect—it’s           barrels of oil, or 430 million cubic feet of
of energy.                                         perfectly situated. Because our rivers are near     natural gas per year.
Last December, verdant Power built and             underground transmission lines, the turbine-        “We’re making such wonderful breakthroughs
installed two of six planned underwater            generated power could easily be plugged into        in harnessing water for energy with the least
turbines eight feet below the surface of the       the existing power grid, allowing for the tidal     amount of environmental impact,” said Trey
East River as part of the Roosevelt Island Tidal   energy to be sent swiftly to waiting customers.     Taylor, Co-Founder and President of verdant
Energy project (RITE). The turbines look like      RITE turbines in the East River have already        Power. “And what excites me is that it’s all
windmills, and as the tide goes in and out,        generated more than 10,000 kilowatt hours           taking place here in New York City.”
they capture some of its energy, converting        of tidal power for a supermarket and parking
it directly into electricity.                      garage just yards away from the pilot site
Tidal power is predictable and reliable,           off the Roosevelt Island waterfront.
flowing with the everyday force of the moon         A third of the $6 million budget went to
on New York City’s rivers. The density of the      sonar radar equipment to study the project’s
water means that fewer turbines are necessary      effect on its surrounding environment and
to produce the same amount of electricity          ensure nearby fish and swooping birds won’t
as wind turbines.                                  be harmed.
                                                                                                                                                                   113


We will work with the State to eliminate           useful energy from its organic waste streams        facility in Hunts Point, including more exact
                                                   and minimize the methane and CO2 emissions          costs of a potential organics recovery facility.
barriers to increasing the use of solar            associated with waste.                              To do so, the City will issue an RFP to target
energy in the city                                                                                     the short list of firms identified in the feasibil-
To further promote solar energy, the City          We will pilot one or more technologies              ity analysis, and set specific operational and
                                                                                                       economic parameters for a facility.
will work with the State Legislature and the       for producing energy from solid waste
PSC to reduce two existing barriers: the
amount of solar that can be connected to           The City’s recently approved Solid Waste Man-       We will end methane emissions from
                                                   agement Plan (SWMP) called for the evalu-
the grid, currently capped at 8.1 MW, and the
                                                   ation of alternative waste technologies for
                                                                                                       sewage treatment plants and expand
amount of excess power that can be sold back
to the grid, currently limited to 10 KW of resi-   converting organic waste into usable energy.        the use of digester gas
dential power.                                     Out of 43 technologies studied, two offered         When wastewater is processed in a sewage
                                                   superior environmental performance and              treatment plant, it produces digester gas,
Methane and organic waste                          cost-effectiveness—anaerobic digestion and          which contains methane and CO2. Currently,
Our garbage and sewage offer both potential        thermal processing. We will launch pilot proj-      roughly 60% of New York City’s digester gas
and perils. If used productively, organic waste    ects to test both of these technologies for         is collected and used to create energy via
or biomass can provide a plentiful source of       broader application.                                fuel cells, most of which is used to power the
energy, producing as much as 450 MW—or                The City is also pursuing a pilot in the Hunts   sewage treatment plant itself, another 25% is
the equivalent of a medium-sized power plant.      Point Food Distribution Center. In 2004, the        flared, and the remaining 15%—the equivalent
Handled improperly, it can add significantly to    City commissioned a study to investigate the        of 165,000 tons of CO2—escapes. Over the
our greenhouse gas emissions through the           feasibility of on-site organic waste recovery       next three years, the City will end all methane
production of methane—which is 21 times as         at the Food Distribution Center in the Hunts        emissions from sewage processing, and will
potent a greenhouse gas as CO2.                    Point neighborhood of the Bronx. The study          work to expand the use of digester gas for
    New York City’s three main sources of          concluded that it is feasible to site an anaero-    energy production.
methane include its current solid waste, its       bic digestion facility that would provide a rea-
former landfills, located within the city, and     sonably priced organics recovery option. The
its sewage treatment plants. Currently, some       facility would create jobs for the Hunts Point
of this methane is captured and either             community, generate a renewable energy
flared—burned and converted into less potent       source and a marketable compost product,
CO2 —or used to create energy. But much of it      and reduce exports of waste to out-of-state
still escapes into the atmosphere.                 disposal facilities with associated truck emis-
    That’s why New York City will work to maxi-    sions. The City will work with stakeholders
mize the safe, cost-effective extraction of        to learn more about the potential for such a


                                                                                                                              A GREENER, GREATER NEW YORK PLANYC
      Energy delivery system


                                                                              TRANSMISSION
                                                                              SUBSTATION
                                                                                                                                                      CUSTOMERS


                                                                                                       AREA
      POWER PLANT                  TRANSFORMERS                                                        SUBSTATION




                                                                                                                                                      CUSTOMERS
                                                                 CONNECTION TO
                                                                 ENERGY SOURCES
                                                                 OUTSIDE ThE CITY                      AREA




                                                                                                                                                                      Source: Con Edison
                                                                                                       SUBSTATION


            GENERATION                                                TRANSMISSION                                                   DISTRIBUTION




            We will study the expansion of gas                     cult to identify the problem and restore             We will advocate before the PSC and
            capture and energy production from                     power. These problems were illustrated            through the upcoming Con Edison electric
                                                                   most clearly during the 2006 power outages        rate case for the implementation of the 53 rec-
            existing landfills                                     in western Queens when Con Edison could           ommendations contained in the City’s report.
            Beginning in the 1970s, some of the meth-              not easily assess the scope of the outages.       These recommendations include:
            ane from Fresh Kills has been processed and            Calls from customers became the primary            • Expanding the installation of advanced
            marketed as natural gas, generating revenue            way to assess the extent of the damage.              meters, which will improve Con Edison’s
            for the City. Since the original gas collec-              In addition, upgrading our infrastructure         ability to instantly identify the number of
            tion system was installed, new technologies            —especially the underground cables—can               customers affected by a power outage
114         have emerged, the cost of natural gas has              be time consuming, costly, and difficult.          • Accelerating repairs to failure-prone com-
            skyrocketed, and the City has committed to             Finding locations to site substations in grow-       ponents of the grid and strengthening
            a greenhouse gas reduction target of 30%.              ing neighborhoods is a difficult challenge. In       oversight of contractors
            Given these changes, the City will initiate a          order to improve reliability, we must adapt
                                                                                                                      • Completing the implementation of all
            study to explore the feasibility of generating         our grid to the demands of the 21st century,
                                                                                                                        recommendations from the 1999 black-
            more energy from its landfill gas, and it will         improving communications between cus-
                                                                                                                        out, while evaluating similarities with the
            review the standards regarding methane cap-            tomers and the utility, making our grid more
                                                                                                                        Queens blackout for additional lessons
            ture and flaring at the city’s existing landfills      transparent so that problems can be identi-
                                                                                                                        on how to improve grid reliability
            every five years to see whether they should            fied more easily, and improving its ability to
            be amended to support the City’s greenhouse            respond to new pressures and incorporate
            gas reduction goal.                                    new technologies.



                                                                                                                     INItIAtIvE 13

            Modernize electricity                                                                                    Facilitate grid repairs
                                                                   INI tIAtIvE 12                                    through improved coordination
            delivery infrastructure                                                                                  and joint bidding
                                                                   Accelerate reliability
            The final important component of clean, reli-
                                                                   improvements to the city’s grid                   We will pursue the passage of joint
            able power is the delivery of that energy to
            New York City customers. (See graphic above:           We will advocate for Con Edison to                bidding legislation
            Energy Delivery System)                                implement recommendations from                    When the City undertakes a construction
               Today, New York City’s power grid is the            the City’s report on the western Queens           project that involves tearing up the street,
            largest underground electric cable system                                                                each affected utility is responsible for protect-
            in the world. Operated by Con Edison, there
                                                                   power outages                                     ing its own cables and other infrastructure.
            are almost 90,000 miles of underground                 The damage caused by the 2006 power               Improved coordination between City contrac-
            cable and almost 20,000 miles of overhead              outages demonstrated the need for exten-          tors and the utilities will result in fewer delays
            cables in the city.                                    sive upgrades to the city’s electric delivery     and lower costs.
               This system is subdivided into mini-grids           system. A City evaluation found that some            Joint bidding enables a single contract to
            or network neighborhoods that deliver                  of the failures in western Queens could have      cover all the work associated with a project.
            power directly to each building. The inter-            been avoided if equipment had been updated        The City will support joint bidding legislation
            connections within our grid provide essen-             in a timelier manner, if upgrades to the system   citywide to allow for fair competitive bidding
            tial redundancy, making it the most reliable           had been monitored more closely or if Con         and more seamless project planning, result-
            network in the United States. But when                 Edison had fully implemented recommenda-          ing in fewer street openings and lower costs
            power failures do occur, the network’s age             tions made after the Washington Heights           to the public.
            and complexity can often make it more diffi-           blackout in 1999.


      ENERGY PROvIDE CLEANER, MORE RELIABLE POWER BY UPGRADING OUR ENERGY INFRASTRUCTURE
                                                                                               Multi-utility tunnel
                                                                                                                                                             Telephone

                                                                                                                                                                 Electric


                                                                                                                                                                   Water


                                                                                                                                                                   Sewer

                                                                                                                                                        Transportation




                                                                       Credit: James Estrin/
                                                                       The New York TImes
Con Edison worker
preparing underground                                                                                                                                   Source: TEPCO, Tokyo
delivery system



   In addition, the City will review its policies                                                            Conclusion
governing the utilities’ ability to open up the
street for regular maintenance and repairs.                                                                  Last summer, we saw the strains on our
This analysis will identify any unnecessary           INI tIAtIvE 14                                         energy infrastructure and the impact it had on
                                                                                                             our air quality, energy bills, and overall quality
delays that prevent utilities from undertak-          Support Con Edison’s efforts                           of life. And these stresses—growing demand,
ing essential improvements such as install-
ing new cables and transformers in a timely
                                                      to modernize the grid                                  inefficient supply, and aging delivery net-
manner. We will also look to pilot new models         We will support Con Edison’s                           work—continue to test our system.
to improve coordination among developers              3G System of the Future initiative                        That’s why we will launch the most ambi-
                                                                                                             tious energy efficiency program in the United
of underground infrastructure, such as the
                                                      Our current grid was designed during                                                                                     115
use of a multi-utility tunnel which allocates                                                                States, while easing the financial risks asso-
                                                      the 1920s. Today, parts of that original system        ciated with expansion and construction of
space for each utility with designated access
                                                      are still in use—and the way it functions              power plants and dedicated transmission
points. (See graphic on facing page: Multi-
                                                      remains fundamentally unchanged. But grid              lines. The combination will enable us to retire
Utility Tunnel)
                                                      technologies are evolving around the world             our city’s most polluting plants.
                                                      and new models have emerged in Tokyo,                     At the same time, we will reduce barriers to
We will ensure adequate pier facilities               Paris, and London.                                     Clean Distributed Generation or “mini” power
are available to Con Edison to offload                   Con Edison initiated a state-of-the-art             plants that are more efficient and cleaner than
transformers and other equipment                      research and development project called                centralized power plants.
                                                      the 3G System of the Future to study how                  Lastly, we will continue to purchase wind
Transformers and other heavy equipment                to transform our network into a 21st cen-
needed to maintain New York’s energy infra-                                                                  energy, support the market for solar energy,
                                                      tury grid. This will include how to integrate          and pilot new and emerging technologies that
structure are often delivered via the water-          advances in communications, computing
ways. This equipment is then offloaded at pier                                                               use wind, tides, hydrogen, and biogas to gen-
                                                      and electronics to respond faster and more             erate electricity. By encouraging these emerg-
facilities throughout the city. Sites must be         effectively to localized network problems and
capable of handling heavy loads and provide                                                                  ing, clean technologies, we will begin building
                                                      demand fluctuations.                                   a market to establish the cleanest possible
access to acceptable transportation routes to            This research and development will require
assure prompt and safe delivery of the equip-                                                                energy supply for New York City’s future.
                                                      a significant investment. The City will support           Implementing all of these policies will
ment. In order to maintain and upgrade the            funding requests by Con Edison to advance
reliability of the electric system, it is essential                                                          reduce the city’s global warming emissions
                                                      this research and improve reliability and ser-         and cut the average New Yorker’s energy bill
that Con Edison have access to specific dock          vice for New Yorkers.
facilities to offload this equipment during both                                                             by $230 annually from projected costs in 2015.
emergencies and during the regular course                                                                    The new strategies will also result in new eco-
of business. This is particularly critical in                                                                nomic opportunities as new industries swell
areas where there is a regular need to install,                                                              around installation, renovations, and produc-
replace or remove equipment and Con Edison                                                                   tion; the retro-fit and retro-commissioning
does not own its own waterfront property.                                                                    program alone could result in 5,000 new jobs.
   For this reason, the City will work with Con                                                                 By investing in these efforts now, the city of
Edison to identify specific critical sites and                                                               endless energy can stay that way.
maintain open access for delivery of equip-
ment along the waterfront.




                                                                                                                                   A GREENER, GREATER NEW YORK PLANYC

								
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