N.Y. Power Authority Awards Contract To Queens Firm To Install Backup Generators At Grand Central Terminal
State-Certified Minority-Owned Business Awarded $9.35 Million Contract

Connie M. Cullen
914-390-8196, connie.cullen@nypa.gov
Michael Saltzman
914-390-8181, michael.saltzman@nypa.gov

February 28, 2011


WHITE PLAINS—New York Power Authority (NYPA) President and Chief Executive Officer Richard M. Kessel announced today the award of a $9.35 million contract that heralds a partnership by NYPA and MTA Metro-North Railroad for the installation at Grand Central Terminal of advanced emergency power generators for enhancing electricity service reliability at the transportation hub and landmark building.

The NYPA Board of Trustees recently approved the contract award to Danco Electrical Contractor, a Long Island City firm and New York State-certified minority-owned business, to install two 2-megawatt (MW) diesel generators and associated equipment at Grand Central.

“The on-site backup generators that the Power Authority and Metro-North are arranging for should be a source of comfort for the hundreds of thousands of people that pass through the Main Concourse of Grand Central every day,” Kessel said. “This initiative also is characteristic of the partnerships that we rely upon with the private sector in our undertaking of energy services, including those with minority-owned business enterprises such as Danco Electrical, which was the low bidder on the Grand Central generator installation work.”

NYPA does millions of dollars of new business each year with minority- and women-owned firms under contracts for commodities, services and construction.  “These firms have been integral to our energy services and we’re looking forward to expanded business opportunities with them,” Kessel added. “Governor Cuomo has set an ambitious goal for minority- and women-owned firms to account for 20 percent of the state’s business.  Besides providing these businesses with their fair share of state government transactions, this will help to spur job growth and accelerate the state’s economic recovery. ”

“The new generators, which will more than double the existing backup generation at the terminal, will help to ensure that the lights will stay on if anything were to happen to the electric power grid, providing a measure of safety to commuters in what might otherwise be a difficult situation. MTA is pleased to be teaming with NYPA and Danco on this project,” said MTA Chairman and CEO Jay Walder. “This project builds on the successful partnership of the MTA and the Power Authority in spearheading a wide variety of building energy retrofits at hundreds of facilities, including rail and subway stations, maintenance shops, office buildings and such landmark properties as Grand Central Terminal.  The improvements that we’ve undertaken in investing in the latest technologies, from new lighting to solar power and fuel cell installations, are making a real difference for enhancing energy efficiency and electricity service reliability, lowering utility bills and improving air quality.”  

To date, NYPA and MTA have together completed or have in various stages of development energy efficiency projects at 212 transportation facilities for an installed cost of more than $198 million. Collectively, the projects will lower peak electricity demand by nearly 29 megawatts (MW), reducing the MTA’s annual utility bills by approximately $19.6 million and the emissions of greenhouse gases by more than 82,800 tons a year.      

The completed projects, at 153 MTA facilities, have a proven record of significant and compound year-round energy savings, while supporting ambitious goals of New York State and New York City to enhance energy efficiency and fuel diversity.

Danco Electrical was one of seven firms responding to a NYPA Request for Proposals issued last June for the installation of the backup generators at Grand Central. The engines were manufactured in the United States by Caterpillar and purchased by NYPA from H.O. Penn Machinery Co. of Poughkeepsie.

The cost of the initiative is $16 million, including the purchase of two generators and ancillary equipment and for the installation, which is expected to get underway this month  and be completed by the end of the year.

MTA is receiving a federal grant through the New York State Office of Homeland Security under which approximately 75 percent of the overall cost of the project will be covered.  Metro-North will fully reimburse NYPA for the up-front costs of the project upon the completion of the work. 

In addition to being available for backup power, the two generators could contribute to the MTA’s already significant participation in a NYPA power demand response program for managing the electricity demand of major government and business customers in New York City during the hottest days of summer when the reliability of the electric power system is most challenged.  Under the program, the customers cut back on their electricity use at NYPA’s request either by turning off equipment such as lights, elevator banks or outdoor fountains or by operating small, properly permitted, on-site generators.

The customers receive incentive payments from the Power Authority in return for their energy-saving measures at approximately 100 locations in the city.  Last summer, the MTA reduced electricity use by more than 50 megawatts from its participation in the NYPA peak reduction program and two other demand response programs that it is enrolled in through NYPA.  (One megawatt is enough electricity to serve 800 to 1,000 homes at any given time.)  

NYPA generating facilities and power purchases meet the electricity requirements of tens of thousands of public facilities in New York City and Westchester County, including schools, hospitals, municipal buildings, and the subways and commuter trains.  The economical power has resulted in cost savings to those facilities of hundreds of millions of dollars a year.  


About NYPA:

■ The New York Power Authority 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 public power organization, with 17 generating facilities in various parts of New York State and more than 1,400 circuit-miles of transmission lines. ■ Approximately 80 percent of the electricity it produces is clean renewable hydropower.  Its lower-cost power production and electricity purchases support hundreds of thousands of jobs throughout the state. ■For more information, www.nypa.gov.


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