Executive Speeches

Excerpts from remarks of Timothy S. Carey, president and chief executive officer of the New York Power Authority, at the Adirondack Research Consortium’s 14^th Annual Conference, Tupper Lake, New York.

May 23, 2007

Thank you and good morning.

I want to commend the Adirondack Research Consortium and the conference organizers for their great sense of timing in choosing sustainability and climate change as the theme for this conference.

Leading scientists are sounding the alarm about the impacts of global warming.

There is growing recognition—in Washington, by state and local governments, among businesses—that climate change and its potentially devastating effects are real and that a bold response is required now.

Polls show increasing public awareness of the problem and support for actions to confront it. 

In my business, electric utilities are being called on as never before to balance pressing environmental priorities with demands for the reliable, affordable energy that’s needed to fuel economic growth and enhance the standard of living for people throughout the world. 

At the New York Power Authority, in an effort to meet these priorities, we adopted a “triple bottom line”:

• Economy;

• Environment;

• Public benefit.

As a statewide utility, the Power Authority is moving ahead with a $21 million program to use hydropower from our Niagara project to produce hydrogen through the  electrolysis of water—without releasing CO2 or other emissions.  The hydrogen, in turn, will power clean vehicles running on fuel cells or modified internal combustion engines.

We’ve thus far completed energy efficiency and clean energy projects at some 2,500 schools and other public facilities throughout the state—cutting annual greenhouse gas emissions by more than 810,000 tons.  That’s equivalent to taking nearly 20,000 cars off the road.

I’m particularly pleased that the energy efficiency measures and other sustainable practices we’ve put in place at our own administrative office building in White Plains have made it the first existing building in New York State to earn Gold-EB recognition under the U.S. Green Building Council’s Leadership in Energy and Environmental Design—or LEED—rating system.

This is just a glimpse of some of what the Power Authority is doing to create a cleaner, healthier environment and—for that matter—cut dependence on foreign oil.

Here in the heart of the Adirondacks, the Power Authority is acting on a number of fronts to address environmental concerns. More broadly, NYPA wants to demonstrate that energy and environmental and societal needs can be met in concert:

• We are working with others to resolve long-standing reliability issues in Tupper Lake and the surrounding areas. This involves building a new power line and implementing new efficiency measures and providing clean on-site power sources.

• We’re installing energy efficient refrigerators in public housing units.

• We’ve supplied major energy efficient equipment at the Olympic Regional Development Authority facilities in Lake Placid and on Whiteface Mountain.

• We’re involved in energy efficiency improvement projects in the Adirondack Park Agency headquarters building in Ray Brook; the town hall and garage in Harrietstown; the Essex County BOCES; all county buildings in Franklin County; and the Saranac Lake train station, among others.

One of our current initiatives in the Adirondack Park is the Tri-Lakes Reliability Project, which we’re carrying out with National Grid and the municipal electric systems in Tupper Lake and Lake Placid—both of which have received our low-cost hydroelectric power for the past 40 years.  A notable feature of the Tri-Lakes project is that it’s a partnership between the public, private and non-profit sectors.

The project stems from a 2004 agreement among the participants and will help resolve the longstanding reliability problems that have plagued the Tri-Lakes region in the winter months of greatest demand for electricity.  I believe it provides a case study in how to meet the energy needs of modern society while accounting for the special environmental requirements of a uniquely beautiful and sensitive area.

Part of the project involves construction of a new 46-kilovolt power line, scheduled for completion by the 2008-09 winter season.  This line will be built in a way that ties in with our environmental and social conscience.

There were two potential routes for the new line.  One began near Stark Reservoir in the Town of Parishville; the other at Newton Falls in the Town of Clifton.  Environmental concerns were paramount as we assessed the two routes.

We examined a host of factors—ranging from wetlands, rivers and streams to wildlife habitats, fisheries and soils. We considered comments from local officials and residents.

As a result of this extensive process, we designated Stark Reservoir as the preferred option. This included a six-mile bypass of the State Forest Preserve.

The APA approved this route in 2006.  Shortly thereafter, working with local officials and environmental groups, we found there was renewed interest in the Forest Preserve route. As a result, a Constitutional amendment is now being pursued.

Meanwhile, the Power Authority and National Grid remain committed to completing the line on time—and on budget.  We’re therefore moving ahead with design and engineering on both the bypass and Forest Preserve options so that we’ll be ready to go with the bypass in case the amendment process isn’t successful.

The energy efficiency initiatives we’re carrying out as part of the project are a logical extension of previous efforts by Lake Placid and Tupper Lake—dating to their participation in the Power Authority’s Watt Buster program in the 1980s and 1990s.

In line with the 2004 Tri-Lakes agreement, the Authority has conducted nearly 70 free energy audits for municipal facilities, residences and businesses in the two villages.  As a major outgrowth of this process, we’ll install a total of approximately 215 energy efficient refrigerators in the villages’ public housing apartments as well as some 400 more in Plattsburgh, another municipal system customer.

As part of the Tri-Lakes agreement, we’ve funded a study for Tupper Lake on potential installation of a biomass generator in the village.  We’re still looking at the technology—which is rapidly advancing—and at the economics of this project, which would use appropriate wood from North Country forests as a renewable power source.  This would bring the twin benefits of renewable energy production and economic development opportunities in the area lumber industry.

In Lake Placid, we intend to contribute $2 million for green building components in the proposed conference center.  And, independent of the agreement, we’re in the midst of a $5.7 million energy efficiency project at Whiteface and Gore mountains and we’ve helped coordinate the recent installation of a solar energy unit at Lake Placid High School.

The Power Authority is also benefiting the North Country environment through several major programs in the area of our St. Lawrence-Franklin D. Roosevelt Power Project.

A series of agreements we reached in connection with a new 50-year operating license for the project in 2003 called—among other things—for us to invest about $66 million in habitat improvements for birds, fish and wildlife; research projects; shoreline erosion control; and related activities.

A unique aspect of our aquatic improvements at St. Lawrence-FDR is a new eel ladder.  This $2 million passage facility will help juvenile American eels move safely over the St. Lawrence-FDR project’s power dam on their 2,500-mile migration from the Atlantic Ocean to Lake Ontario.

Thanks to the new facility’s success in its first season, the Power Authority was one of four recipients of an Outstanding Stewardship of America’s Waters award for 2007 from the National Hydropower Association.

The Power Authority activities I’ve discussed this morning—diverse as they are—share a common purpose and a common theme.

The purpose is to protect and improve the environment and—in doing so—to set an example for others in our industry.  The theme is that of sustainability—of preserving our priceless natural resources and the Earth itself—for future generations even as we find innovative and responsible ways to meet our present energy needs.

These goals are vital everywhere.  But they take on still greater meaning in areas such as the magnificent Adirondack Park—where we can see with piercing clarity just how much is at stake.

We now have a singular opportunity here in the Park to help show the way to a sustainable future worthy of the respect and concern for the environment that is embedded in our history and in our heritage.  The Power Authority is committed to continuing a partnership with you in this worthy and essential endeavor.