N.Y. Power Authority Board Approves Selection of Electricity Suppliers For New York City Governmental Customers

Michael Saltzman

February 23, 2005


NEW YORK— The New York Power Authority (NYPA) Trustees Wednesday approved selection of electricity suppliers for serving the Authority’s governmental customers in New York City and the thousands of essential facilities they operate.

The action stems from an ongoing joint planning process for the future energy needs of the governmental customers, including the City of New York, the Metropolitan Transportation Authority, the Port Authority of New York and New Jersey, and the New York City Housing Authority.

The customers participated in the competitive review of more than 30 bids submitted in response to a Request for Proposals (RFP) issued by NYPA last June for energy supplies, beginning as early as February 1, 2008. That led to a “short list” of potential suppliers, followed by negotiations with those under final consideration.

The selected companies for meeting a portion of the RFP requirements are Entergy, Morgan Stanley Capital Group and Zilkha Renewable Energy. The agreements with the companies are being finalized, in consultation with the customers as part of the joint planning process with them.

The contract with Zilkha would provide energy from wind power. The company is proposing to build five new wind farms in Erie, Cattaraugus, and Wyoming Counties.

The Power Authority continues to work closely with the New York City governmental customers in reviewing alternatives for a requirement for in-city capacity, which can be met either by power generation within New York City or facilities connected through dedicated transmission lines from outside its borders.

NYPA is planning to issue an RFP in the next couple of weeks to explore the best options for the capacity requirement, which is intended to enhance reliability of electricity service in the city. The request will be for 500 megawatts of unforced capacity, or UCAP, to begin February 2008, for at least 10 years.