Executive Speeches

Remarks of Louis P. Ciminelli, chairman of the New York Power Authority, at the dedication of the convertible static compensator (CSC) Phase II, Clark Energy Center, Marcy, New York.

June 29, 2004

Thank you. I’m happy you could be with us today for this very significant event.

I’m especially excited that Lieutenant Governor  Donohue is helping us mark the milestone on behalf of Governor Pataki, whose leadership has inspired  innovative energy technologies like the CSC.

We’re also fortunate to have former NYPA Chairman “Rapp” Rappleyea here. Over the years, “Rapp” has been a mentor to a new generation of New York leaders. I am pleased and privileged to have had the opportunity to serve with him…and learn a great deal from him. I am glad we chose this occasion to note his contributions to NYPA and the State of New York.

This pioneering project—the convertible static compensator—has been providing benefit to New York State over the last three years, following the Power Authority’s completion of its first phase. That work increased power flow on the heavily utilized transmission corridor between Utica and Albany and elsewhere on the power grid by 114 megawatts.

CSC Phase 2 increased the power flow capability on the statewide transmission system to nearly 200 megawatts, or enough to meet the electricity needs of about 200 thousand homes.

But the CSC is especially striking for its R&D quality. It marks the first time, anywhere in the world, where there is capability of instantaneously shifting power in the same substation from a heavily loaded transmission line to one with spare capacity.

Why is this important? Because it strengthens service reliability for electricity consumers by bringing about better utilization of the transmission system. And it provides additional options for delivering economical power to locations where it’s most needed.

The CSC is an example of the niche the Power Authority fills in doing things others aren’t willing or able to undertake.

The same is true for the seven small, clean generating plants we installed before the summer of 2001 in New York City and on Long Island to bridge a perilous gap between projected demand for power and existing capacity in downstate New York. And it’s true of NYPA’s statewide energy-efficiency programs for thousands of tax-supported public facilities, as well as investment in new, clean technologies such as fuel cells, solar power and electric vehicles. All are examples of NYPA serving to meet the unique energy challenges of the Empire State.

But it’s the convertible static compensator—the advanced transmission-control device at this site—that’s our focus today.

We’ve invested more than $41 million in the project. For many power companies, that level of investment—which accounts for about 75 percent of the project’s $54 million cost—might never have happened. But a public-benefit corporation like ours—one created to serve the best interests of the people of the State of New York—is obliged to look beyond the costs to consider all the benefits that may be achieved by innovation.

The CSC not only provides tangible benefits for New York’s electric system, it also demonstrates the value of a device whose widespread adoption would have the potential  to revolutionize the way electricity is delivered from power plants to consumers. It’s the culmination of so-called FACTS technology, an acronym for Flexible Alternating Current Transmission Systems, in which high-speed solid state electronics are used, rather than conventional electromechanical devices, to greatly enhance power grid control.

Indeed, the considerable promise of the CSC, as a solution to transmission problems, is the reason numerous energy industry organizations also invested $13 million to support the application of the technology at this substation. They included EPRI; Siemens Power Transmission and Distribution, the CSC manufacturer; and more than 30 other utilities and independent system operators in the U.S., Canada and New Zealand.

I want to thank Ric Rudman of EPRI and  Al Woelfle of Siemens —two of today’s program participants— for the support their organizations have given us. It speaks volumes of the importance this project holds for our industry.

EPRI has had a major role in helping to advance the FACTS technology.

In early March, it named the Power Authority overall Product Champion for 2003 for the development, building and testing of the CSC, singling out three of our employees who played key roles. The award recognizes major contributions to technology transfer and commercialization of EPRI products for end users.

Without doubt, the CSC adds to the importance of the Frederick R. Clark Energy Center, which serves as the hub of our transmission facilities and employs about 170 people.

We’ve been part of this community for more than 23 years, and given our all to being a good neighbor, as we do at all of our facilities.

This includes allocating lower-cost electricity to businesses and industries in Oneida and Herkimer counties that are linked to about 12,800 jobs. Most of them stem from Governor Pataki’s Power for Jobs program, which we’ve administered.

We’ve also had an impact on lowering the energy bills of tax-supported public facilities in the area through a wide array of energy-efficiency measures, from lighting upgrades to electrical motor replacements. Among the beneficiaries: the Oneida County Office Building, Court House and Sheriff’s Department, and Mohawk Valley Community College.

In short, NYPA is heavily involved with various beneficial efforts in this area. The completion of the CSC is the latest example. Thank you for helping us to mark this milestone.