NYPA Strong Performance Continued In 2000
Contact Connie Cullen (914)390-8196 connie.cullen@nypa.gov
March 30, 2001
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. Pataki’s 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 program’s 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 programs—including the installation of energy efficient lighting, heating and air-conditioning systems and other improvements—that 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 Authority’s 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 NYPA’s 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 NYPA’s safety record has been recognized by APPA.
On March 28, 2000, the Power Authority Trustees authorized the sale of NYPA’s 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 plants—the Niagara Power Project in Lewiston and the St. Lawrence-Franklin D. Roosevelt Power Project in Massena—to assure their continued, efficient operation.
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 Authority’s 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 Rappleyea’s successor in the two posts on March 13, 2001.
NYPA is the nation’s largest state-owned public power enterprise. It provides a quarter of New York State’s 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 requirements.
