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New York Power Authority Wind Power Agreements to Serve Government Customers in New York City

Michael Saltzman

December 8, 2006

WHITE PLAINS—Clean, renewable power is the underlying energy for contractual arrangements by the New York Power Authority (NYPA) with two wind power companies, on behalf of the Authority’s large governmental customers in New York City and the thousands of public facilities they operate. 

NYPA has completed agreements with Horizon Wind Energy and PPM Energy, for purchase of 72 megawatts (mw) of renewable energy attributes, or “green tags,” from two upstate wind farms, the Maple Ridge Wind Farm (60.5 mw) in Lewis County and Madison Wind Farm (11.55 mw) in Madison County. 

“These agreements are part of our continuing effort to encourage renewable power in New York State for improved air quality, reduced dependence on foreign oil and spurring the growth of clean energy technologies,” said Timothy S. Carey, NYPA president and chief executive officer. “Those goals have been a fundamental part of Governor Pataki’s energy policies, which aim to enhance the Empire State’s environment and economy.” 

Carey cited the Governor’s 2001 Executive Order requiring that renewables account for 20 percent of the electricity purchases of state facilities by the end of the decade, and a subsequent Renewable Portfolio Standard for at least 25 percent of the electricity purchases in the state to come from renewables by 2013. 

“The wind power contracts that we’ve completed with Horizon and PPM are a direct result of those mandates and the importance that our government customers in New York City have placed on environmentally benign energy purchases that reduce fossil-fuel emissions and contribute to energy security,” Carey said.  

NYPA’s governmental customers to be served by the wind power agreements are the Port Authority of New York and New Jersey, the City of New York, the Metropolitan Transportation Authority, the New York City Housing Authority and the City University of New York. Among the facilities to benefit from the wind power contracts will be the new Freedom Tower and other buildings at the World Trade Center site.  

In September, Governor Pataki announced plans for green, sustainable development for the World Trade Center that will involve renewable energy, both on- and off-site. In addition to the wind power green tags, the Freedom Tower and World Trade Center Office Towers 2, 3, and 4 will benefit from power supplied by four 1.2 megawatt fuel cell systems to be acquired by NYPA. 

Among its renewable power initiatives, NYPA has installed 14 fuel cells at various locations in New York City, Yonkers and Syracuse and 24 solar photovoltaic projects at various locations around the state, including schools and other public facilities.  

 NYPA meets the electricity requirements of government customers in New York City from its generating plants and power purchases. Recently executed long-term supplemental agreements with those customers anticipate annual savings of hundreds of millions of dollars a year on their utility bills.  

Additionally, NYPA works with the government customers to identify energy efficiency and clean energy projects to lower their electric bills, and improve air quality and energy security. To date, these energy-saving initiatives have resulted in an annual savings of approximately

$58 million for public facilities in the city. The reduced electricity use also displaces some 1.1 million barrels of oil a year and reduces annual greenhouse gas emissions by 477,000 tons.

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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