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More Funding on Energy Efficiency Projects Available to Customers of New York Power Authority

Connie Cullen

November 28, 2006


WHITE PLAINS—The New York Power Authority (NYPA) Trustees, at their meeting today, authorized an increase of $50 million to expand financing of energy efficiency and clean energy initiatives undertaken by its customers through NYPA’s Energy Services Program (ESP).  This brings the total amount of funds available to $400 million.  This expansion will be attained by issuing debt in the form of Series 1 Commercial Paper Notes (CP-1 Notes).  

“It is sometimes tough to find those initial funds to make your facility more energy efficient, while knowing the energy cost savings achieved make that investment worthwhile.  With this additional low-cost financing, the Power Authority will be able to help to make it easier for more of our customers to incorporate energy efficient goods and services in their operations,” said Frank S. McCullough Jr., chairman, NYPA. 

“In order to keep pace with the growing demand our customers see in the value of reducing their energy costs through energy conservation measures, NYPA recognized it must provide a larger pool of low-cost financing for these efforts,” said Timothy S. Carey, president and chief executive officer, NYPA.  “Since Governor Pataki took office, the Power Authority has financed hundreds of million of dollars for energy-saving projects for NYPA government customers and other public entities, and this new financing initiative will continue our strong support for such efforts.”

 This September, NYPA announced the ESP achieved the milestone of financing and administering $1 billion in energy efficiency and clean energy initiatives in nearly 20 years of the program’s existence.  This tremendously successful program has been financed substantially through the issuance of CP-1 Notes with the debt repaid through the energy cost savings achieved from projects performed under NYPA’s ESP.  NYPA’s dealers for the CP-1 notes are RBC Dain Rauscher Inc. and Lehman Brothers, Inc. 

ESP initiatives include nearly 1,500 wide-ranging, clean energy projects at 2,400 facilities including schools, police precincts, fire stations, hospitals, museums, libraries, and government buildings across New York State.   As a result, ESP is responsible for reducing oil use by 1.8 million barrels per year and avoiding annual greenhouse gas emissions by more than 750,000 tons annually.  NYPA customers have seen their energy bill costs reduced by savings of more than $95 million per year with peak loads reduced by more than 200 megawatts—enough electricity to power about 160,000 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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