NYPA Energy Efficiency Funding Tops $1.3 Billion 

Connie M. Cullen

July 27, 2004


MASSENA—The Trustees of the New York Power Authority (NYPA) today Tuesday approved a funding increase of $230 million for energy efficiency projects for NYPA governmental customers in Southeastern New York (SENY).  SENY covers the City of New York and Westchester County.  This authorization brings total NYPA funding statewide to $1.33 billion for projects that conserve energy at municipal facilities and due to less energy use, save taxpayers money with lower energy costs and provide cleaner air.

 “Governor George E. Pataki set a high standard for energy efficiency at State agencies, with his Executive Order 111, which requires a 35% reduction in their energy use by 2010,” said Louis P. Ciminelli, NYPA’s chairman.  “In keeping with the spirit of the Governor’s Order, this funding helps State agencies and other levels of government in Southeastern New York work towards achieving significant energy savings.”  

Ciminelli added, “Since Governor Pataki took office, cumulative energy savings achieved through NYPA energy efficiency projects have grown from $29 million to $600 million with annual energy savings, for New York’s taxpayers, of $88 million and growing.”  

NYPA’s program for funding energy efficiency initiatives enables its participants to embark on energy-saving improvements, with no up-front capital expenditures.  The improvements reduce energy-related portions of the participants’ operating costs to generate the savings that pay for the projects.  For facilities where full program financing is provided by NYPA, participant repayment is usually achieved in 10 years or less from those energy cost savings and/or lump sum payments.

This funding provides goods and services such as feasibility studies; engineering design; cost analyses; equipment; labor; hazardous waste disposal; project/construction management and  financing.  Projects include building improvements such as energy-efficient lighting systems; occupancy sensors; HVAC modernization with energy-efficient chillers, boilers and controls; computerized energy management systems, and distributed generation.  

Of the $1.33 billion, over $700 million—including the $230 million authorized today—will be used on SENY projects identified by mid-2007.  NYPA’s SENY customers include the Metropolitan Transit Authority, the Port Authority of NY and NJ, the City of New York and Westchester County, among others. 

Power Authority staff serves as the general contractor for the SENY energy services projects and to complement staffs’ expertise, NYPA contracts for the installation of the projects with implementation contractors.  For projects to be undertaken with the $230 million, the Trustees also authorized that $150 million of those funds be used toward goods and services contracts provided by five implementation contractors. 

“Today’s funding energizes New York’s economic growth with more business opportunities for private sector companies providing the energy-saving technologies and services used by NYPA’s energy services programs,” Ciminelli said.

Firms bidding for implementation contracts were evaluated on cost and a number of technical criteria including experience in developing energy efficiency projects; design and construction experience in New York City, and qualifications of staff, among other credentials.

For large scale Energy Services Projects, DMJM+Harris, Inc. and Chu & Gassman Consulting Engineers, PC were selected as implementation contractors.  For Water Treatment jobs, DMJM+Harris and Camp, Dresser and McKee, Inc. were chosen.  For Energy Services-Small Projects, work will be performed by DMJM+Harris, PB Power, Inc. and Con Ed Solutions.  Contracts for each of the five firms will be for three years, with an option to extend the contracts for two years depending on the level of program activity.