Electricity Outlook 2002: A Call To Action

The Terrorist Attack on New York City

The Terrorist Attack on New York City

The attack of September 11, 2001 destroyed the World Trade Center complex of 13.4 million square feet, 4 percent of Manhattan’s total office space, and severely damaged another 15 million square feet of office space in the buildings immediately adjacent to the WTC complex. The peak electricity usage of all of these buildings totaled approximately 140 MW, or about 1.3 percent of the City’s peak load in the summer of 2001.

Temporary Impact on Projected Electricity Demand
While the aftermath of the attack of September 11 sent shock waves throughout the City’s economy, about 75 percent of businesses that were in the World Trade Center and adjacent area have subsequently relocated within the City, thus shifting, but not significantly lowering, overall electricity demand. The net loss of the demand load at this time is approximately 20 MW.

The reduced demands for electricity from the direct and indirect effects of the terrorist attack and recession will be temporary. Peak load demand in 2002 is expected to be 10,665 MW, similar to the level reached during the summer heat wave of 2001. Preliminary indications from January and February 2002 show that, for similar weather, demand has been in line with that of the early months of 2001. The 2002 forecast is based upon normal weather conditions, and another record heat wave could drive 2002 peak load higher than now expected.

Con Edison did a superb job in restoring electricity supply to the downtownarea following the September 11 attack, and still faces considerable challenges in restoring electric cables and rebuilding the downtown sub-stations. As the permanent restoration work proceeds, Con Edison needs to closely co-ordinate their ongoing work projects with the business community, as well as with the City and other infrastructure providers, to ease the burdens on businesses and residents.

Over the next five to ten years, construction of previously planned buildings, now being expedited throughout the City, and the restoration and rebuilding of Downtown Manhattan, now in the planning process, will help to assure the City’s economic recovery and to increase demand for electricity by both businesses and consumers.

Projected Electricity Needs for the Next Five Years
New York City still faces a critical need for 2,000-3,000 MW of new electric capacity by 2006 in order to meet demand, to replace aging power plants and improve the environment, and to maintain market stability. Continued conservation efforts and customer demand reduction programs will help ease peak load demand, but construction of new facilities is still necessary to provide sufficient reliable power.