NYISO reports continued risk of energy crisis if development lags

NEW YORK (PRNewswire) In an update of its Power Alert report issued a year ago on New York State’s electric capacity needs, the New York Independent System Operator (NYISO) today called for the immediate approval of 3,000 megawatts (MW) of new generating capacity to avoid serious electricity shortages, improve air quality, facilitate New York’s economic growth, and avert strong upward pressure on prices. The report says that Long Island alone needs between 750 and 1,000 MWs approved as soon as possible to reduce severe reliability risks and high prices.

The NYISO is a not-for-profit corporation established in 1999 to facilitate the restructuring of New York State’s electric industry. In addition to administering the state’s wholesale energy markets, the NYISO operates the state’s high-voltage electric transmission system.

The updated report, Power Alert II: New York’s Persisting Energy Crisis, calls for the addition of a total of 7,100 MW of capacity by 2005. The original version of the report, issued in March 2001, called for the addition of 8,600 MW by 2005. The 17 percent reduction in NYISO’s call for new capacity reflects the impact of reduced electricity usage due to slowed economic growth over the past year. The loss of the World Trade Center had a more marginal impact on reducing overall power demand than is widely perceived, causing an immediate gross reduction of only 140 MW and a total net reduction of 90 MW, one-fifth the amount estimated in some early published reports.

“The bottom line is that New York continues to need significant additions of new generating capacity despite the temporary dampening of demand growth caused by the terrorist attack and the recessionary conditions of last year,” said William J. Museler, President and CEO of the NYISO. “To ensure that New Yorkers have reliable, affordable, environmentally responsible sources of power to fuel the growth of the information age, we have to move fast in adding new capacity to the state’s power grid.”

Of the 7,100 MW of new capacity that New York State needs by 2005, the NYISO says that 2,000-3,000 MW must be located in New York City, which, like Long Island, is a “load pocket” — a region whose energy needs cannot be satisfied by imported electricity due to limited transmission capabilities.

“A year after our release of the original Power Alert report, New York remains headed toward a very serious power shortage unless it acts immediately to get new supply sited and actually built within its borders,” said Museler. “This updated report is a warning call that we are far from out of the woods with respect to our electric supply situation.”

In addition, the NYISO report also recommends the renewal of the State’s Article X electric power plant siting law that expires on December 31, 2002 in order to maintain the growing momentum in approving new power plants.


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The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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