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PRESS RELEASES

For Immediate Release
March 16, 2001

Contact:
Richard J. Bolbrock
(516) 719-9833

New York City Generation Supply Deficient for Summer 2001

"Unless currently planned generation is installed in New York City on schedule, and Load Serving Entities (LSE) in New York are able to purchase adequate capacity in the market, the electric supply for New York City will not be adequate to reliably meet projected electricity demands, including reserves, during the summer of 2001," said Richard J. Bolbrock, Chairman of the New York State Reliability Council (NYSRC). According to the New York Independent System Operator (NYISO), 80 percent of forecast load in New York City must be able to be produced within the City. Should this “in-City” requirement not be met, reliance on electricity from outside the City will increase. Such reliance will increase the likelihood of power interruptions under adverse operating conditions.

"Without adequate in-City generation supply, there will be increased possibility of public appeals for conservation, voltage reductions, rolling blackouts, and other forms of load curtailment similar to what has been happening in California," said Mr. Bolbrock. He made these comments after the NYSRC reviewed and concurred with the findings of the NYISO that New York City had been deficient in generating capacity during the summer of 2000, and that additional generation currently being constructed in New York City will be needed to provide adequate capacity for Summer 2001. Thanks only to relatively cool weather last summer, such load curtailment measures were not needed.

While the New York Power Authority has begun construction of generating resources in New York City needed to meet the summer of 2001 requirements, lawsuits could cause delays in the start-up of these generating resources. Unless these problems are resolved immediately, New York City could experience serious deficiencies during the upcoming summer.

The NYSRC encourages all parties to support the generation resources being developed by NYPA and others for operation by the summer of 2001. In addition, parties are encouraged to support efforts to streamline the siting process for new generation that will be needed beyond 2001. The NYSRC also supports programs to reduce peak electric demand. For example, the PSC's 2001 Demand Response Program is a high priority initiative to help ensure that adequate electric supplies are available, by implementing all feasible, cost-effective opportunities for obtaining additional generating capacity and reducing customer demand for the Summer of 2001. Finally, the NYSRC supports the NYISO's Emergency Demand Response Program, where participating customers can reduce their consumption by either curtailing load or switching to emergency standby generators, when requested by the NYISO. Mr. Bolbrock noted that all of these measures were supported by the "Report on the Reliability of New York's Electric Transmission and Distribution Systems" (November 2000) published by the seven state agencies which make up the New York State Energy Planning Board, including the New York State Energy Research and Development Authority (NYSERDA) and the PSC.

The purpose of the New York State Reliability Council is to promote and preserve the reliability of the New York State power system by developing, maintaining and, from time to time, updating the reliability rules which must be complied with by the New York Independent System Operator and all entities engaging in electric power transactions on the New York State power system. The New York State Reliability Council carries out its purpose to the benefit of the entire electric service industry, including consumers, with no intent to advantage or disadvantage any member or any market participant's commercial interest. The New York State Reliability Council is a not-for-profit entity.

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