Annual Report 2002
Page 6
Despite an economic downturn and the destruction of the World Trade Center complex, there remains an urgent need for 2,000-3,000 megawatts (MW) of new electric capacity in New York City over the next five years. This additional power is needed to meet projected growth in demand through 2006, to replace aging plants with cleaner, more efficient ones, and to provide a cushion of supply that will prevent dramatic increases in consumer costs for electricity. Furthermore, while the need before and after the tragic events of September 11 remains largely unchanged, conditions for the financing, construction and completion of new generating facilities have worsened due to the financial uncertainties created by the collapse of the Enron Corporation.
Electricity Outlook: A Call To Action follows the January 2001 edition of Electricity Outlook: A Matter of Urgency, and provides current evaluations of the City’s electricity demand forecasts and prospects for new sources of supply. This report also reviews additions to the City’s electric supply for the summer of 2001 and the subsequent surge in demand during the heat wave in August, which left the City with only a narrow margin of supply to prevent service disruptions. Even if peak load demand in 2002 just matches last year’s historic high levels, the summer of 2002 will require aggressive conservation measures to help reduce demand, especially during peak demand periods.
As New York City rebuilds, and recovers from a lingering recession, electricity demand will continue to grow. Additional energy efficiency and clean distributed technologies could yield 500 MW in the next five years, but will not supply enough reliable power to meet the City’s needs. New generating facilities must be proposed, constructed and built ‘in-city’ within the five boroughs.
This is especially challenging since some generating plant proposals are currently being reconsidered, postponed or withdrawn. The perception at present appears to be that both the California andYork City crises of 2001, over insufficient electric supply and rising prices, have
subsided. Yet, the situation facing New York City in early 2002 has not improved, and the urgent need for additional electric capacity still exists.
