Businesses warn New York needs more power plants
Date: 09-Aug-02
Country: USA
"New York State risks serious economic damage unless it moves urgently to add generating capacity," the Business Council of New York State Inc. warned.
The council, in a statement issued this week, pointed to July 30 when the New York power grid operator, fearing the system would be overwhelmed, resorted to public pleas for conservation and took emergency steps to cut demand to avoid blackouts.
Electricity demand typically peaks during the summer, when air conditioning accounts for about a third of all power used.
Power supplies in New York City and its suburbs are among the tightest in the nation because the construction of new plants and transmission lines has not kept pace with the region's strong economic and population growth.
This same type of shortfall was at the center of the energy crisis that hit California in 2000-2001, triggering rolling blackouts, soaring energy prices, and billions of dollars in emergency power purchases by the state.
To avoid a similar crisis, the Public Policy Institute in February issued a report in which it claims New York needs at least a dozen new power plants capable of generating at least 9,200 megawatts within the next five years.
One megawatt powers roughly 1,000 homes.
The Institute, the Business Council's research affiliate, said in its report the new capacity is needed to ensure reliability and to foster the robust competition in the energy market needed to drive prices down.
"Both factors - reliability and competition - are critical to the state's long-term economic health," the Business Council said.
Other organizations, including the New York Independent System Operator, the state Public Service Commission, the Independent Power Producers of New York State and the Energy Association of New York State, have also urged New York needs the approval and construction of new plants for continued economic growth.
"Conservation efforts cannot take the place of increased generating capacity," the Business Council noted, restating an argument made previously by the Energy Association and others.
