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N.Y. Power Authority Wednesday Activates Peak Load Reduction Program

Michael Saltzman

August 2, 2006


NEW YORK—The New York Power Authority (NYPA) Wednesday activated its Peak Load Management (PLM) program for the second consecutive day to reduce the higher power demand in New York City from the continuing heat wave.

“The New York Power Authority’s Peak Load Management program for New York City is part of the coordinated statewide efforts under Governor Pataki to reduce power demand on the hottest days of the year when the electric power system faces its most difficult challenges,” said Timothy S. Carey, NYPA president and chief executive officer. “The PLM program can make a crucial difference for the broader efforts for managing available generating capacity and the power grid to avoid equipment overload from the heat and higher consumption.”

Power Authority customers participate in the PLM program at more than 90 locations in New York City, for a peak load reduction of 45,000 kilowatts (kw). (That equals the electricity used by 36,000 homes.) Among the participating customers are the City of New York and the Metropolitan Transportation Authority.

This is the eighth year that NYPA has sponsored the PLM program, under which participants are paid $40 for each kilowatt they reduce. Under the program, the Power Authority may call for load reductions for up to 15 weekdays, from June 1 through September 30, anywhere between 11 a.m. and 7 p.m. Participants are given a day-ahead weekday notice of the possible activation of the program, based on weather forecasts, with the event confirmed on the morning it is scheduled for.

NYPA has advised participants that it may implement the PLM program tomorrow (Thursday), which would be the third day this week that customers would be asked to reduce power usage and the fifth day this summer.

Various NYPA customers also participate, through the Power Authority, in two power curtailment programs administered by the New York Independent System Operator (NYISO), which oversees the state’s electric power grid. Together with the PLM program, the NYPA customers’ participation in the NYISO programs accounts for a load reduction within New York City of 132,000 kw, or enough power for 105,600 homes.


About NYPA:

■    NYPA uses no tax money or state credit.  It finances its operations through the sale of bonds and revenues earned in large part through sales of electricity.  ■    NYPA is a leader in promoting energy-efficiency, new energy technologies and electric transportation initiatives.  ■    It is the nation’s largest state-owned electric utility, with 18 generating facilities in various parts of the state and more than 1,400 circuit-miles of transmission lines.

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