NYPA Strong Performance Continued In 2000
FOR IMMEDIATE RELEASE
WHITE PLAINS The New York Power Authority (NYPA) continued its pattern of strong
performance in 2000 as it surpassed goals for providing low-cost electricity to create and
protect jobs for New Yorkers; promoting energy efficiency and encouraging the use of
innovative clean energy technologies; maintaining workplace safety; successfully
integrating with the new Independent System Operator (ISO) environment; and achieving the
sale of its nuclear assets at a record price.
Under Governor George E. Patakis Power for
Jobs program and other job-promoting initiatives, the Power Authority achieved
its economic development goals with nearly 380,000 jobs created and protected since the
programs 1997 inception. Power for Jobs serves nearly 650 businesses and
not-for-profit organizations across the State. In 2000, new legislation was approved to
provide 300,000 kilowatts for current and new Power for Jobs recipients for three
more years. The original 450,000 kilowatts of Power for Jobs electricity were
allocated by the end of March 2000.
NYPA Energy Services programsincluding the
installation of energy efficient lighting, heating and air-conditioning systems and other
improvementsthat conserve energy and reduce pollution at public facilities, now save
taxpayers $68 million a year. The NYPA energy saving projects at public schools,
state university campuses, and governmental buildings conserve almost 160,000 kilowatts
each year and help avoid 446 thousand tons of greenhouse gas emissions annually.
The Power Authority continued to develop and utilize other clean-air technologies such
as electric vehicles and fuel cell power plants. In 2000, NYPA became the first electric
utility in the Northeast to achieve the million-mile mark for the electric vehicles it has
deployed. North Central Bronx Hospital became among the first medical facilities in the
nation to generate electricity from a non-polluting, fuel cell power plant, installed and
financed by the Power Authority.
The Power Authoritys commitment to safety was again realized in 2000, as it
posted its safest year on record. This 34 percent overall improvement in worker safety
exceeded NYPAs record year for safety in 1999. The Power Authority facility in
Marcy, the Frederick R. Clark Energy Center, achieved the milestone of being without a
recorded personal-injury accident for a period of two years for its workforce of nearly
100 people. These efforts, in addition to NYPA-wide safety accomplishments in 2000,
merited a First Place Award from the American Public Power Association (APPA). This is the
fifth consecutive year that NYPAs safety record has been recognized by APPA.
On March 28, 2000, the Power Authority Trustees authorized the sale of NYPAs nuclear facilities, Indian Point 3 in
Westchester County and James A. Fitzpatrick in Oswego County, to Entergy Nuclear
Northeast. The sale closed on November 21, 2000.
The $967 million purchase price represents one of the highest prices ever paid for
nuclear facilities in the nation and is the largest privatization of state-owned assets in
New York State history. The Power Authority has contracted with Entergy to purchase, for a
period of four years, output from those plants to guarantee its government and business
customers a reliable source of low-cost power during the transition to a competitive
marketplace for electricity.
During 2000, NYPA continued with the estimated $500 million, 15 year modernization of
its two major hydroelectric plantsthe Niagara Power Project in Lewiston and the St.
Lawrence-Franklin D. Roosevelt Power Project in Massenato assure their continued,
In November 2000, NYPA circulated, as part of the Cooperative Consultation Process, a
draft application for a 50-year license renewal for its operation of the St.
Lawrence-Franklin D. Roosevelt Power Plant. The Power Authority is continuing to work
closely with all affected parties in the relicensing process. The final application is
required to be filed by October 31, 2001.
Significant factors contributing to the Power Authority positive financial performance
in 2000 included reduced operating costs, positive plant performance and increased
investment earnings. In 2000, operations and maintenance expenditures were the lowest
since 1990. Higher plant availability enabled the Authority to sell electricity when it
was most needed. These positive results were partially offset by the impact of higher oil
and gas prices.
In August 2000, the Power Authority initiated the PowerNow! project, an estimated $500
million program to install 11 gas-powered turbines in New York City and Long Island. The
turbines are needed to meet the call by New York State Public Service Commission and the
New York Independent System Operator for additional electric generation by summer 2001 to
avoid blackouts and energy price spikes in southeastern New York.
Every business unit in the Power Authority contributed to its achievements in 2000. For
their efforts, resulting in the Power Authoritys successful year, eligible employees
received a performance-based variable payment (about 2.7%) based on the performance
results of each employee, each business unit and the entire Authority as measured against
benchmarks established each year.
In December 2000, C.D. "Rapp" Rappleyea announced he would leave his NYPA
post as Chairman and Chief Executive Officer on Jan. 31, 2001. Rappleyea was appointed a
NYPA Trustee in June 1995 by Governor Pataki and was elected chairman and chief executive
officer by the Trustees in July 1995. Former Office of General Services Commissioner
Joseph J. Seymour became Rappleyeas successor in the two posts on March 13, 2001.
NYPA is the nations largest state-owned public power enterprise. It provides a
quarter of New York States electricity by operating 10 generating facilities and
more than 1,400 circuit-miles of transmission lines. NYPA sells power to government
agencies; to community- owned electric systems and rural electric cooperatives; to
private- sector companies in return for job commitments; to private utilities for
resale-without profit-to their customers; and to neighboring states under federal