sep-annual-report

MEMORANDUM
March 2006
TO: Peter R. Smith, William M. Flynn, Denise M. Sheehan, Thomas J. Madison, Jr.,
Charles A. Gargano
FROM: Energy Coordinating Working Group1
SUBJECT: State Energy Plan - 2005 Annual Report and Activities Update
INTRODUCTION
The 2002 State Energy Plan and Final Environmental Impact Statement (State Energy Plan) was
released by the State Energy Planning Board (Energy Planning Board) in June 2002. In December 2002,
February 2004, and February 2005, the staffs of the Energy Planning Board agencies issued memoranda
documenting progress in implementing recommendations contained in the State Energy Plan. This report
updates the State’s activities and progress through December 2005. This memorandum also summarizes
the results of NYSERDA’s request for the voluntary filing of information by major energy suppliers who
were previously required to report information pursuant to the former Article 6 of State Energy Law and
Energy Planning Board regulations (Title 9 NYCRR Parts 7840-7863)2.
STATE ENERGY PLAN IMPLEMENTATION EFFORTS
The State Energy Plan’s energy policy objectives listed in Table 1 remain as relevant and timely
today as they were in 2002, especially in light of energy market developments since adoption of the State
Energy Plan, recent volatility in energy supplies and prices, and the damage to the U.S. natural gas and
1
Staffs of the Energy Planning Board agencies comprise the Energy Coordinating W orking Group, which
was responsible for conducting the 2002 planning proceeding, preparing the State Energy Plan, and receiving
information filings from major energy suppliers pursuant to Article 6 of State Energy Law and Board regulations.
The Energy Planning Board agencies were the New York State Energy Research and Development Authority, New
York State Department of Transportation, New York State Public Service Commission, New York State Department
of Economic Development, and New York State Department of Environmental Conservation.
2
Although Article 6 expired on January 1, 2003, NYSERDA, acting on behalf of the former Energy
Planning Board, requested this information on a voluntary basis in an attempt to maintain an accurate and complete
record of information and data in anticipation of the future re-authorization of the planning process. As compliance
of major energy suppliers with this voluntary request has waned considerably, NYSERDA will cease to request
voluntary compliance.
State Energy Planning Board - 2005 Annual Report and Activities Update
State Energy Plan and Final Environmental Im pact Statement
petroleum infrastructures caused by Table 1: Energy Policy Objectives

the hurricanes of 2005.
The five broad public policy objectives contained in the State
Since release of the State Energy Plan are:
Energy Plan, the State has made
1. Supporting the continued safe, secure, and reliable operation of
notable progress implementing its the State’s energy and transportation system infrastructures;
recommendations and supporting its
2. Stimulating sustainable economic growth, technological
policies. The following summarizes innovation, and job growth in the State’s energy and
progress achieved during the past transportation sectors through competitive market development
year. A more complete accounting and government support;
of the progress made implementing 3. Increasing energy diversity in all sectors of the State’s economy
recommendations is provided in the through greater use of energy efficiency technologies and
Appendix to this memorandum. alternative energy resources, including renewable-based energy;
4. Promoting and achieving a cleaner and healthier environment;
Energy and Infrastructure and
Security
5. Ensuring fairness, equity, and consumer protections in an
The State’s critical energy increasingly competitive market economy.
infrastructures have undergone Source: 2002 New York State Energy Plan and Final Environmental
continuing review since the Impact Statement.
September 11, 2001 terrorist attacks
in New York City. The New York
State Office of Homeland Security (OHS) and U.S. Department of Energy (U.S. DOE) Office of Energy
Assurance have surveyed security threats to the State’s electric power grid, local electricity distribution
systems, natural gas pipelines, and natural gas distribution companies. OHS continues to actively
monitor potential threats to the State’s critical infrastructures.
Over this same period, the New York State Department of Public Service (DPS) has been
reviewing, evaluating, and inspecting utility security programs. The Office of Utility Security (OUS) at
DPS established in 2003, leads this effort. In addition to providing regulatory oversight, OUS works with
both regulated utilities and the “lightly regulated” electricity generation facilities to ensure that current
threat information is shared as appropriate and security capabilities are kept up to date with technology
advances. OUS performs frequent site visits to critical utility facilities to verify security readiness and
confirm the continued deployment of enhanced security equipment and measures.
Energy Diversity
Since release of the State Energy Plan, the State has initiated numerous actions to improve energy
diversity throughout the State including:
• Investing in energy efficiency through a statewide public benefits program and the energy
efficiency programs of the New York Power Authority (NYPA) and Long Island Power Authority
(LIPA);
• Implementing a Renewable Portfolio Standard (RPS) program for electricity use;
• Initiating a natural gas efficiency pilot program in Con Edison’s service territory; and
• Evaluating the potential gas savings opportunities available statewide from investment in improved
energy efficiency.
Page 2 of 12
Highlights of these efforts are

summarized below. Figure 1 illustrates Figure 1: New York Energy Fuel Mix 2004
the current diversity in New York’s
primary energy and electricity generation3
in 2004, the latest year for which data are
available.
Energy Efficiency and Demand
Management. The New York Energy
SmartK public benefits program
established by the PSC and administered
by NYSERDA, is reducing electricity use
and peak demand by about 1,700 gigawatt
hours per year and 1,000 megawatts,
respectively, from measures installed
through September 2005, the latest
quarter for which data are available. Of
the 1,000 megawatts of demand reduction,
more than 377 megawatts represent firm
reductions from permanently installed energy efficiency measures, and the remaining 623 megawatts
represent callable reductions available on short notice from customers participating in day-ahead
programs offered by the New York Independent System Operator (NYISO). In addition, more than 400
megawatts of reduction potential will benefit the New York City area. These programs result in annual
bill reductions of more than $230 million annually for New Yorkers, and they continue to provide
promising opportunities for energy efficiency and load management resources to participate equally with
electricity generation in meeting electricity demand.
Through year-end 2005, the New York Energy SmartK Program has invested over $800 million
in energy efficiency and demand reduction and generated close to $2.0 billion in present value benefits.
The Program has created over 4,400 jobs and reduced environmental emissions by over 1,500 tons of
nitrogen oxide (NOx), 2,700 tons of sulfur dioxide (SO2 ) and 1.2 million tons of carbon dioxide (CO2 ).
In December 2005, the PSC extended this program for another five-year period to run through June 30,
2011 at a funding level of $175 million annually.
As of September 2005, through numerous programs offered by NYSERDA, NYPA, and LIPA, the
State is saving over 2,900 gigawatt-hours of electricity annually and has reduced peak electricity demand
by nearly 1,500 megawatts. Energy efficiency helps meet an increasingly larger share of the State’s
energy needs and results in substantial reductions in air and water emissions from power plants and
reductions in oil and natural gas used in households, businesses, and industry. The creation of NOX and
SO2 credits from these reductions help support continuing economic growth in New York, where offsets
are required for new source permitting.
In March 2005, the PSC approved a new, three-year electric rate plan for Con Edison Company
of New York, Inc. To help offset electric load growth expected over the next few years, thus reducing
the need for additional central generation and distribution and transmission facilities, the rate plan
3
Although not shown in Figure 2, petroleum products account for more than 98 percent of the energy used
in the transportation sector.
Page 3 of 12
establishes mechanisms to promote energy efficiency, distributed generation and peak load management
initiatives where it is cost-effective to do so. The program is designed to have two components: a Con
Edison administered program targeting selected energy efficiency and distributed generation initiatives,
and a "system-wide" program to be administered by NYSERDA, consisting of broad energy efficiency,
distributed generation, and load management initiatives. The goal of each component is to reduce
demand by 150 MW.
Renewable Energy. Early in 2003, the PSC instituted an RPS for electricity retailed in the State
to be administered by NYSERDA4 . In support of this effort, NYSERDA and the NYISO jointly
evaluated the impact of adding large amounts of wind-generated electricity into the New York power
grid. The study was released on March 4, 2005 and concluded that the New York State bulk power
system can accommodate up to 3,300 MW of wind capacity with only minimal adjustments to existing
operational practices. The PSC established the RPS target of providing 25 percent of the electricity
retailed in New York from renewable resources within ten years. Currently, approximately 17 percent of
the State’s electricity is generated from renewable resources.
NYSERDA’s first solicitation for renewable power under the RPS was issued in December 2004.
This resulted in the acquisition of over 821,000 megawatt-hours of renewable electricity production at
seven facilities, starting in 2006. Four of these electricity generating facilities, representing 98 percent of
the total, are wind-powered and the remaining three are re-powered hydro facilities. It is expected that a
second solicitation for renewable electricity will be issued in the first half of 2006.
The State Energy Plan has a goal of increasing renewable energy use as a share of statewide
primary energy use by 50 percent; up from 10 percent in 2000 to 15% in 2020. Through year-end 2005,
renewable energy as a share of primary energy use has remained steady at about 10 percent, in spite of
increases in energy use.
Distributed Generation (DG) Technology. The State’s New York Energy SmartK Program
continues to support research, development, and demonstration of distributed generation technology
applications in New York, including combined heat and power (CHP) systems. As of October 2005, the
Program was supporting 99 CHP demonstration projects with a potential peak capacity of 102
megawatts. Approximately one-half of this anticipated capacity will be located downstate. To date, the
Program has invested over $50 million in these projects and leveraged another $220 million in co-funder
investment. In addition, the Program is supporting another 50 DG/CHP product development projects.
The New York State Department of Environmental Conservation (DEC) continues to work on
the development of regulations governing emissions from distributed generation sources with adoption
expected in early 2006.
Bio-fuels. The State has made a concerted effort to introduce bio-fuels through mandated use of
bio-diesel fuel in the State vehicle fleet and piloting the use of bio-diesel fuel in transit and school buses
and in heavy-duty vehicles. A full complement of research and development is under way to support bio
fuels in the State’s transportation, buildings, and electricity generation sectors.
On November 20, 2005, Governor Pataki announced a major initiative to increase the production
of bio-fuels in New York State. By Executive Order, all State agencies and public authorities will be
required to purchase and use bio-fuels for heating State buildings (at least 5% by 2012) and fueling the
4
New York State Public Service Commission, Case No. 03-E-0188, Order Regarding Retail Renewable
Portfolio Standard, issued and effective September 24, 2004.
Page 4 of 12
State motor vehicle fleet (at least 2% by 2007, increasing to 10% by 2012). NYSERDA will also offer a
$500,000 incentive program for the planning, design, construction, and operation of bio-diesel refining
facilities. This initiative is part of a comprehensive plan to develop and expand markets for ethanol and
other bio-fuels, and to help reduce our dependence on foreign energy sources. The proposal is also
expected to provide a boost to farmers in New York who will see an increased market for feedstocks used
in bio-fuel production.
Energy Use Efficiency in New York versus the U.S.
The following graphs compare primary energy consumption for New York State and the United
States on per capita and economic output bases. Some notable trends include:
• On average, from 1990 to 2004, New York State's primary energy use per unit of
economic output was 47 percent lower than the national figure.
• From 1990 to 1995, New York State primary energy use per GSP was essentially
unchanged. However, from 1995 to 2004, New York State decreased its primary energy
use per GSP by 21 percent, while U.S. use decreased by 18 percent.
• From 1990 to 2004, New York State's average primary energy use per capita was 38
percent less than the national average.
• From 1995 to 2004, New York State decreased its primary energy use per capita by 2.1
percent, while U.S. use declined by 1.9 percent.
Overall, New York remains significantly more energy efficient than the nation as a whole. New York’s
Figure 2: Primary Consumption per Dollar of Gross State Product/Gross Domestic

Product
Page 5 of 12
Figure 3: Primary Consumption per Capita
residential sector energy efficiency is improving at a faster rate than the nation as a whole, industrial
energy efficiency in the State is slowing relative to the nation.
Transportation
Energy resource diversity in the transportation sector continues to be a major focus of State
activities as a means of reducing dependence on imported petroleum, improving environmental quality
and promoting economic development. For example, NYSERDA has invested over $25 million in
transportation R&D including $16 million for compressed natural gas projects, $6.8 million for hybrid
electric vehicle projects and $3.6 million for fuel cell development. In addition, through its deployment
programs, NYSERDA has invested $27 M in 66 AFV projects, representing over 800 CNG vehicles and
16 CNG refueling stations.
Other New York agencies are also aggressively pursuing AFV options. For example, the NYS
Department of Transportation has acquired over 800 CNG vehicles. The Metropolitan Transportation
Authority has acquired over 53 CNG vehicles and 325 diesel-hybrid electric vehicles, and has another
500 hybrid-electric vehicles on order. The Office of General Services now offers almost 30 different
models of AFVs for purchase under State contract and expects to add 16 more. NYPA supports a
variety of clean-fuel vehicle initiatives, including retrofitting up 2000 New York City school buses with
improved emission control devices. DEC has established biodiesel fueling capability at its Chenango,
Cortland and Broome County facilities. The Thruway Authority fleet includes both CNG and ethanol
(E85) vehicles and the Thruway has opened an ethanol fueling facility in Cheektowaga which is available
to serve other New York State fleet vehicles. The Governor’s Office reports that State vehicle fleet now
includes more than 4,600 AFVs.
Page 6 of 12
In 2005 New York became the first State to lease Honda’s new hydrogen powered fuel cell
vehicle. The State leased two vehicles for two years as part of a project cosponsored by NYSERDA,
Honda, Plug Power and Air Products designed to demonstrate cold-weather performance of this
technology and to help develop a hydrogen refueling infrastructure.
In November 2005, the Governor issued an Executive Order which calls for biodiesel to meet
10% of the fuel needs of the State vehicle fleet by 2012. This is in addition to the goal established in
Executive Order 111 that 100% of all new State light duty non-emergency vehicle purchases be
alternative fuel vehicles by 2010.
On December 30, 2005, the Department of Transportation released for public review and
comment the draft statewide master Transportation Plan. It can be accessed at
http://www.dot.state.ny.us/tranplan/mp-intro.html. This new transportation Master Plan presents a
comprehensive, 25-year outlook for transportation in New York State and includes new ideas for
managing and operating the State’s multi-modal transportation network, encompassing highway, rail, air,
water, and pedestrian infrastructures. The Plan is designed to foster the creation of a seamless, customer-
friendly transportation network that is predictable, convenient, and accountable to the public. The draft
Plan focuses on strategies and policies needed to achieve results in the five priority areas of Mobility and
Reliability, Improving Environmental Conditions, Safety, Security, and Economic Competitiveness. The
draft Plan identifies major initiatives designed to increase energy efficiency in the transportation sector
while reducing emissions of criteria pollutants and greenhouse gases.
Environmental Initiatives
The State Energy Plan has a goal of reducing greenhouse gas (GHG) emissions five percent
below 1990 levels by 2010 and 10 percent below 1990 levels by 2020. While the State has undertaken
several initiatives to improve energy efficiency, increase the share of renewable energy in the State’s fuel
mix, and reduce vehicle emissions, the State’s GHG emissions have increased seven percent above 1990
levels through year-end 2005. However, because of the States efforts, GHG emissions in 2005 were one-
half of one percent lower than they would have been absent the State’s initiatives. Other activities being
implemented promise further reductions.
In July 2003, nine northeastern and mid-Atlantic states initiated a collaborative effort to develop
a program to reduce carbon dioxide emissions from electricity generating facilities known as the
Regional Greenhouse Gas Initiative (RGGI). Connecticut, Delaware, Maine, Massachusetts, New
Hampshire, New Jersey, New York, Rhode Island, and Vermont fully participate in the RGGI effort and
Maryland, the District of Columbia, Pennsylvania, the Eastern Canadian Provinces, and New Brunswick
are observers in the process. DEC, DPS, NYSERDA, and representatives of the other participating states
created a Staff Working Group (SWG) to analyze the possible impacts of a various program features.
The SWG developed a proposal which includes the implementation of a multi-state cap-and-trade
program with a market-based emissions trading system. The proposal would stabilize electricity sector
emissions from 2009 to 2015, followed by a 10% reduction between 2015 and 2019. The relevant
agency leaders from all of the participating states reviewed and discussed this proposal.
On December 20, seven of the nine states that participated in the initiative signed a supporting
Memorandum of Understanding. Only Massachusetts and Rhode Island declined to sign the MOU. The
MOU is an agreement among seven Northeast states to implement a cap-and-trade program to lower
carbon dioxide (CO2) emissions from power plants. This is the first mandatory cap-and-trade program
for CO2 emissions in U.S. history. Under RGGI, emissions of CO2 from power plants in the region
would be capped at current levels, beginning in 2009 - approximately 121 million tons annually - with
this cap remaining in place until 2015. The states would then begin reducing emissions incrementally
Page 7 of 12
over a four-year period to achieve a 10 percent reduction by 2019. RGGI calls for at least 25 percent of a
state's CO2 allowances to be auctioned to power plants. The funds generated from these sales must be
used for beneficial energy programs dedicated to strategic energy or consumer benefit purposes, which
might include greater energy efficiency, support for new clean energy technologies, or funds returned to
ratepayers to lower the price effects of RGGI. The agreement allows power plants to use "offsets"
greenhouse gas emission reduction projects from outside the electricity sector - to account for up to 3.3
percent of their overall emissions. Examples of offset projects include: natural gas end-use efficiency,
landfill gas recovery, reforestation, and methane capture from farming or natural gas transmission
facilities.
Electricity System Reliability and Electricity Prices
Studies conducted by the NYISO, PSC, Federal Energy Regulatory Commission (FERC) and
others following the electricity system blackout of August 2003 have assessed the reliability of New
York’s transmission system and concluded that it remains one of the most reliable, if not the most
reliable, system in the world. Nonetheless, the NYISO, PSC and the New York State Reliability Council
continue to look at policies, including possible incentives and regulations, to maintain and further
improve the reliability of New York’s electric system, consistent with the State’s energy policy goals.
The Electric System Planning Working Group (ESPWG) was created by the NYISO in response
to a FERC request for a regional transmission organization to administer a comprehensive planning
process within the region. The ESPWG is composed of market participants from all sectors who work to
identify electric system needs in New York. Both NYSERDA and DPS participate in the Working
Group. In 2004, the ESPWG developed a reliability planning process which was submitted to and
approved by FERC. In 2005, the ESPWG completed is first Reliability Needs Assessment (RNA) under
the new process and the RNA was approved by the NYISO Board on December 19, 2005. The RNA
identified the need for reliability enhancements in New York State as early as 2008. Work will now
begin on soliciting market based responses to the needs while the affected regulated transmission owners
analyze possible back up regulated solutions.
New York State’s Article X power plant siting law expired on December 31, 2002. The State
Energy Plan recommended renewal of the law and the Governor has offered legislation for that purpose.
Prior to its expiration, a total of 24 projects representing about 14,900 MW of net electricity generating
capacity had applied for Article X Certificates. As of January 1, 2006, 13 projects, totaling about 7,300
MW of net capacity, had obtained such Certificates. Five of those projects, about 2,380 MW of net
capacity, are now in commercial operation and one additional 500 MW project is under construction.
Two of the projects awarded Certificates, about 1,240 MW of capacity, were subsequently cancelled.
Six projects, about 4,000 MW, were cancelled before receiving Certificates and five projects, about
3,600 MW, are still in the application review phase.
New York uses more natural gas and petroleum as a relative percentage of fuels used in
electricity generation, at 17 percent and 13 percent, respectively, compared with 13 percent and 3 percent
respectively for the U.S. Natural gas and petroleum prices are primarily established in world and
national markets and reflect rapidly changing demand and supply conditions. The effect of these rapid
changes in market conditions is high volatility in natural gas and petroleum product prices, which in turn
creates greater price volatility in New York relative to national average prices. The recent petroleum and
natural gas price increases, resulting in part from rising world demand, particularly in China and India,
and damage to the U.S. domestic supply chain caused by severe hurricanes, have served to slow New
York’s progress in closing the gap between New York and U.S. electricity prices. For each natural gas
Page 8 of 12
and petroleum product price increase, the State’s price differential increases, as New York is more reliant
on these fuels than the U.S.
NYSERDA, on behalf of the PSC, is conducting a study of the State’s petroleum infrastructure
on Long Island, in the New York City area, and in the Hudson Valley up to Albany. The study, which is
nearly complete, will characterize the petroleum infrastructure serving the study area, assess its adequacy
and resiliency, and identify needed improvements if the system is to continue operating safely and
reliably and continue meeting the needs of both electricity generation and residential heating customers
in the future. The study is scheduled to be completed in January 2006.
Governor’s Nine Point Energy Action Plan
To help combat the recent significant increases in energy prices brought on by growing world
demand and hurricane damage to domestic natural gas and petroleum supplies, and to increase energy
efficiency, diversity and security, in September 2005, Governor Pataki issued a 9-point Strategic Energy
Action Plan. The 9-point plan includes: (1) home heating tax credits for the elderly; (2) home energy
assistance for elderly and low-income households; (3) energy assistance for small businesses and
farmers; (4) tax credits for home heating systems upgrades; (5) a sales-tax-free week for Energy Star
appliances; (6) tax credits for alternative fuel vehicles; (7) incentives for alternative fuel production; (8)
bulk purchasing of electricity by the State; and (9) access to HOV lanes lanes for clean and energy
efficient vehicles. These initiatives, and others, are currently being discussed with the Legislature, with
the goal of providing short-term price relief and long-term energy independence.
STATE ENERGY PLAN FORECASTS AND CURRENT OUTLOOK
New York’s electricity load in gigawatt hours (GWh) in the years beginning with the release of
the State Energy Plan and ending in 2005, the latest year for which actual data are available was within
1.6% of the 2002 SEP electricity load forecast. The difference between actual load and the SEP forecast
ranged from 1.6% less than the forecast in 2004 to 1.12% greater than the forecast in 2005. Similarly,
New York’s peak in megawatt (MW) demand over the same period was within 1.8% of the SEP forecast
in three of the four years from 2002 through 2005. In 2004, the actual peak was 9.28% below the SEP
forecast peak. This difference resulted from an unusually cool summer, which had 9% fewer cooling
degree days than a “normal” summer. Tables 2 and 3 respectively present the actual and forecast energy
and peak demand for the 2002 to 2005 period.
Table 2: SEP Electricity Load Forecast (gWh) vs. Actual Load
Percent Difference:
GWh
2002 SEP Forecast Actual Actual from SEP
2002 158,019 158,752 +0.47%
2003 160,480 158,013 -1.54%
2004 162,844 160,211 -1.62%
2005 165,280 167,225 +1.12%
Page 9 of 12
Table 3: SEP Peak Forecast vs. Actual Peak
Percent Difference:
MW
2002 SEP Forecast Actual Actual from SEP
2002 30,500 30,664 +0.54%
2003 30,984 30,333 -1.82%
2004 31,340 28,433 -9.28%
2005 31,907 32,027 +0.53%
Table 4 compares the most recent NYISO forecast for electrical energy use and peak power
demand to the comparable forecasts contained in the four-year-old State Energy Plan forecasts. The table
demonstrates that:
• The State Energy Plan’s forecast, both in absolute terms and in relative annual growth
rates, remains a reasonable estimate of energy use and peak electricity demand over the
next ten years when compared to the much more recent NYISO forecast;
• Electricity use in New York State is expected to grow by just over one percent per year,
on average, over the next ten years; and
• Peak electricity demand is likewise expected to grow by just over one percent per year,
on average, over the next ten years.
Page 10 of 12
Table 4: Forecast Comparison of New York’s Annual Electricity and Peak

Demand with the NYISO’s 2005 “Load and Capacity Data” report forecast.
Energy (GW h) Peak (M W )
NYISO 2005 2002 State NYISO 2005 2002 State

Year Forecast Energy Plan Forecast Energy Plan
2006 166,790 165,280 32,120 32,319
2007 169,400 167,490 32,560 32,786
2008 172,100 169,977 33,050 33,185
2009 174,290 172,404 33,480 33,633
2010 176,340 174,658 33,910 34,031
2011 178,060 176,910 34,280 34,415
2012 179,520 179,031 34,600 34,711
2013 180,710 180,907 34,880 35,147
2014 181,740 182,867 35,120 35,472
2015 182,880 184,677 35,370 35,670
Annual
Average 1.1% 1.2% 1.1% 1.1%
Growth Rate
MAJOR ENERGY SUPPLIER FILINGS

Prior to the expiration of Article 6 of the Energy Law on January 1, 2003, major energy suppliers
in New York were required to file information and data with the Energy Planning Board. Regulations
promulgated by the Energy Planning Board identified the specific types of information that major energy
suppliers in various categories were required to file.
With the expiration of Article 6, several proposals to continue this effort have been introduced in
the State Legislature. In lieu of a legislative mandate, NYSERDA, which had served as the records
access and secretariat organization to the Energy Planning Board, has sought voluntary compliance with
Energy Planning Board regulations until such time as new energy planning legislation is adopted. It was
hoped that such voluntary filings would help maintain a consistent data set for planning and policy
purposes.
2005 Response to Requests for Voluntary Filing. In 2003, the call for voluntary filings met with
an extremely positive response. In 2004, the response was less enthusiastic than in 2003. In 2005, the
response to the request for voluntary filling was minimal and the responses received did not provide
adequate information from which to draw meaningful findings. As a result, voluntary compliance with
the former filing requirements will no longer be sought. It seems clear to staff that, absent a renewed
statutory requirement, collecting useful information from major energy suppliers is a difficult and
generally fruitless activity. One notable exception is the NYISO’s annual Load and Capacity Data
which provides substantial information on the status of New York’s integrated electricity system. The
following is a brief discussion of the level of voluntary responses received.
Electricity. As of November 30, 2005, a total of 41 reports were received from alternative power
producers, transmission owners, and municipal electric utilities with information regarding more than
Page 11 of 12
230 generation units they owned or operated during 2004. Some parties submitted a single filing
providing data for all their generation facilities, while others provided separate filings for individual
generation stations. The filings represent approximately 47 percent of New York’s summer 2004
electricity generation capacity.
In addition, as mentioned above, the NYISO submitted its 2005 Load and Capacity Data report,
which included extensive information on historical and projected peak load and energy requirements,
existing and expected generation capacity, and existing and expected transmission facilities.
Petroleum Products. Under the former Energy Planning Board regulations, major petroleum
suppliers and transporters were only required to file reports in even-numbered years. Consequently, such
parties were not asked to file voluntary reports in 2005.
Natural Gas. Voluntary reports were received from six of the nine natural gas pipeline operators
serving New York State.
Coal. Pursuant to the former Energy Planning Board’s regulations, coal suppliers were required
to file information only at the specific request of the Chair of the Energy Planning Board. No
information was requested of coal suppliers in 2005.
COMPREHENSIVE TRACKING OF STATE ENERGY PLAN IMPLEMENTATION
The attached tracking matrix (Appendix A) provides a comprehensive overview through
December 2005 of the implementation of State Energy Plan recommendations. The activities identified
represent a significant commitment of resources by State government to consumers, security of energy
supplies and infrastructures, improved environmental quality, and the fair delivery of services to all New
Yorkers.
Page 12 of 12
APPENDIX: NEW YORK ENERGY PLAN TRACKING MATRIX PAGE 1 OF 40
No. State Energy Plan Recommendation
Progress to Date
Policy Objective 1. Supporting the continued safe, secure, reliable operation of the State=s energy and transportation
systems infrastructures.
1.A. The State will continue its study of the security of New York=s energy infrastructure used for
production, storage, and delivery. The study will include a risk and vulnerabilities assessment and
recommendations for appropriate actions and will be conducted cooperatively by the Office of Public
Security, appropriate Energy Planning Board agencies, and major energy market participants, in
cooperation with appropriate federal agencies.
Following the terrorist attacks of September 11, 2001, the New York State Department of Public
Service (DPS) staff consulted with officials from New York=s telephone and energy utilities
regarding their security preparedness. In 2002, DPS staff recommended that the utilities retain
third-party consultants and experts to evaluate the adequacy of their physical and cyber security
arrangements. The evaluations were completed in 2003.
During 2002 and 2003, the United States Department of Energy (U.S. DOE), Office of Energy
Assurance, in conjunction with the New York State Office of Public Security (later renamed the
New York State Office of Homeland Security), completed a critical infrastructure security
assessment for the State. U.S. DOE surveyed the security of the New York power grid, the New
York electricity utilities, natural gas pipelines, and natural gas distribution companies, as far as
terrorism threats are concerned. The U.S. DOE study team included input from the Energy
Planning Board agencies, staff of the national laboratories and other experts, and staff from DPS
and the New York State Office of Public Security. The work product has been incorporated into the
U.S. Department of Homeland Security=s national infrastructure protection program.
In 2002 the Public Service Commission (PSC) ordered the 12 largest energy and
telecommunications utilities in New York to undergo comprehensive security audits. In mid-2003,
to better address the requirements of security oversight on a continual and permanent basis, the
DPS, Office of Utility Security, was established by the PSC. The DPS Office of Utility Security
has completed a review of the PSC-ordered utility security audits and follow-up action plans and
verified that each utility is following the recommendations made for improvement in physical and
cyber aspects of readiness and that each utility is adhering to industry best practices for security or
is formulating definitive plans to do so. Although it has been verified that each utility has met or
exceeded a prudent level of security preparedness, DPS Office of Utility Security continues to
maintain frequent contact with utility security staffs to share current threat information and share
information about security technology developments. The DPS Office of Utility Security staff
carries out frequent site visits to confirm the continued deployment of enhanced security equipment
and the implementation of improved security measures.
In 2006, the DPS Office of Utility Security will increase its level of security oversight of merchant
electric generation companies in New York under the "safety and reliability" authority the
Commission exercises over those companies.
The DPS Office of Utility Security is acting as liaison with energy and telecommunications
providers and maintaining continual outreach to assist in addressing ever-increasing demands for
security readiness. Beyond its responsibility for enhancing security through its regulatory oversight
responsibility, the Office of Utility Security is undertaking a broadly proactive role in strengthening
security.
F:\USERS\ENERANLS\GROUP\02 - State Energy Plan - Energy Planning Board\7. 2005 Update\Matrix Final 3-21-06.doc
3/22/2006
Progress to Date
Through close coordination and partnership with federal and state security and public safety
agencies, the DPS Office of Utility Security is sharing information with affected entities called for
by current threat situations. This task includes education, threat awareness briefings, advocacy,
technical guidance, and traditional monitoring and inspections with private sector owners of energy
and telecommunications assets.
In 2003, the New York State Legislature enacted Chapter 403 of the Laws of 2003 requiring that the
NYS Office of Homeland Security initiate a review of security measures currently in place to
protect the State=s critical energy generation and transmission infrastructure. The review has been
completed, and findings are being evaluated by executive policy makers and the legislature.
In addition to regulated electric utilities in New York, the DPS Office of Utility Security is working
with over 50 companies that operate more than 200 electric power generating plants in New York.
These generating companies supply 98 percent of all non-nuclear power in the State and provide 84
percent of the state's electric power requirements. These electric generation providers are in
discussions with the DPS on ways to make their systems more secure.
During 2005, the emphasis of the DPS Office of Utility Security continued to be on achieving
progress in eight priority areas:
1. Continuing site inspections of 288 critical utility facilities to verify the implementation of
physical security management action plans by the 12 largest regulated utilities.
2. Continuing site visits to regulated utility facilities to verify implementation of cyber security
action plan items.
3. Extending site security reviews to regulated utility facilities not covered in the audits.
Developing and recommending security enhancements at these facilities.
4. Conducting site security reviews of approximately 200 fossil fuel burning power plants
operated by independent merchant power generation companies in the State.
5. Continuing work with utility security directors to monitor their responses as utility security
incidents arise.
6. Conducting cross training and providing briefings to security counterparts at nuclear power
facilities in New York.
7. Conducting cross training and providing briefings to counterparts at New York State agencies
responsible for homeland security, specifically OHS and the State Office of Emergency
Management (SEMO).
8. Expanding staff participation in the development of security preparedness practices and policies
with national industry associations and regulatory bodies.
1.B. The State supports investments in natural gas and electricity transmission and distribution system
infrastructures, including consideration of multiple redundancies, shared design practices, shared
inventories, and flexibility necessary to ensure continued safe and reliable system operation.
3/22/2006
Progress to Date
The safe, reliable operation of electric utilities is enhanced by information sharing among utilities.
The mergers of New York State Electric and Gas (NYSEG) with Rochester Gas and Electric
(RG&E) and Niagara Mohawk Power Authority (Niagara Mohawk) with National Grid New
England (National Grid) in 2002, as well as the previous merger of Consolidated Edison of New
York (Con Edison) with Orange and Rockland (O&R) have resulted in sharing of inventories, work
forces, and best practices for safety and reliability. Electric utilities are developing reliability
centered maintenance programs through the use of new metering, testing, and software
technologies.
In 2002, the combined construction budgets of the major local natural gas distribution companies
(LDCs) totaled approximately $490 million. Of this amount, approximately 96 percent was spent
on distribution system improvements. In 2003, the total rose to more than $600 million, of which
approximately 90 percent was spent on distribution system improvements.
In 2004, the combined construction budgets of the major LDCs totaled approximately $600 million.
Of this amount, approximately 90 percent was spent on distribution system improvements.
In 2005, total gas construction budgets were as follows:

Major Gas LDC Budget Percent For
Central Hudson $ 12.9 96%
National Fuel Gas 38 85%
Con Edison 145 87%
Orange & 23 87%
NYSEG 42 38%
RG&E 25 89%
National Grid 45.6 95%
KeySpan East 123 79%
KeySpan West 165 69%
Total $ 619.5
The PSC intervened with the Federal Energy Regulatory Commission (FERC) in support of
pipeline projects to increase natural gas pipeline delivery capacity to New York State. These
interventions included support for the Millennium, Iroquois Eastchester, and Islander East projects.
The Iroquois Eastchester project was completed and placed in service in February 2004. On
August 1, 2005, Millennium filed an application with FERC for permission to build Phase 1 of the
Millennium Pipeline from Corning to Ramapo, NY. Also, Empire Pipeline filed an application with
FERC on October 10, 2005 for the construction of the Empire Connector pipeline. In addition, the
PSC is participating in the pre-application process for the Empire Extension, which is planned to
link Phase I of Millennium to Canadian supplies. Algonquin and Iroquois are expected to be filing
applications soon for permission to construct the necessary downstream pipeline facilities to move
the natural gas delivered by Millennium to the downstate New York market. When all the related
applications are filed regarding Millennium’s capacity, FERC will consider the filings in a
combined proceeding. The PSC anticipates filing an intervention in support of the related projects
at that time. The Islander East project is awaiting a Federal Court decision with respect to its water
quality permit before it can commence construction. The Iroquois Eastchester project was
completed and placed in service in February 2004.
3/22/2006
Progress to Date
The Electric System Planning Working Group (ESPWG) was created by the New York Independent
System Operator (NYISO) in response to a FERC request for a regional transmission organization
to administer a comprehensive planning process within the region. The ESPWG is composed of
market participants from all sectors who work to identify electric system needs in New York. Phase
I, the reliability planning phase of the process, was completed by the working group during the
summer of 2004 and subsequently approved by FERC. In the fall of 2005, the ESPWG advanced
its first Reliability Needs Assessment (RNA), which passed the NYISO Management Committee on
November 9, 2005 and was approved by the NYISO Board on December 19, 2005. The RNA
showed system needs in New York State as early as 2008. The NYISO filed the proposal on
August 20, 2004 and subsequently received FERC approval. The ESPWG has decided to pursue an
“informational” approach to economic planning and will continue to work on economic planning
issues in Phase II of the process.
The New York Power Authority (NYPA) completed final commissioning tests for the Convertible
Static Compensator (CSC) at its Marcy substation and placed the equipment into commercial
operation in 2004. This advanced transmission enhancement technology has helped to increase the
power flow on the statewide power grid by nearly 200,000 kilowatts, including more than 100,000
kilowatts on the heavily used transmission corridor between Utica and Albany. The CSC employs
Flexible Alternating Current Transmission Systems (FACTS) which use high-speed, solid-state
electronics rather than conventional electromechanical devices to control transmission voltage and
power flow.
NYSERDA and the NYISO jointly sponsored an evaluation of the impact of adding large amounts
of wind-generated power into the New York grid. The first phase of the study was completed on
January 31, 2004. Phase I included a preliminary screening analysis and included the conclusion
that New York should be able to add up to 3,300 MW of wind capacity without significant adverse
effects on the planning, operations, and reliability of the bulk power system.
A final report was released in March 2005. The final report substantiated the findings in Phase I,
subject to certain assumptions. The report examined several potential impacts of adding large
amounts of wind capacity in New York, including: (1) wind forecasting uncertainty;
(2) operational impacts; and (3) the capacity value of added wind. The report made several
recommendations for system planners to ensure that system reliability can be maintained.
Between June 2001 and December 2004, six electricity transmission projects were approved by the
PSC under Article VII of the Public Service Law, the longest being a 58-mile 600-MW line
connecting New Jersey and Long Island. Another five proposed projects have filed for Article VII
certification and were in various stages of review. These projects range up to 1,000 miles in length
and 2,000 MW in transfer capability.
Under Article VII, in 2005:

à 10 miles of 230 kV electric transmission were completed by Flat Rock Wind Power to connect
the approximately 330 MW Maple Ridge wind farm (formerly Flat Rock wind farm) to the
National Grid electric system in Lewis County.
à 4 miles of 138 kV underground transmission were completed by Con Edison in Westchester

County
3/22/2006
Progress to Date
à Construction was begun on the Neptune Project in which 58 miles of high voltage direct current
(HVDC) lines will be constructed between Long Island and New Jersey.
à The PSC approved 8.1 miles of 345 kV transmission proposed by National Grid to transmit
electricity from the certified Empire State Newsprint Project in the City of Rensselaer.
à More than 10 miles of pipeline were approved and constructed to deliver natural gas from wells
drilled in Chemung, Seneca, Steuben, and Schuyler counties.
Two Article X certified electric generation facilities totaling 1,110 MW were completed in 2005, a
net increase of 550 MW — Bethlehem Energy Center, owned by PSEG, in Albany County, and
East River Repowering, owned by Con Edison, in New York City.
Two Article X facilities in Queens, New York, will come on-line in 2006: the Astoria Energy
Project with 500 MW, owned by SCS Energy, and the Poletti Station Expansion, also with 500
MW, owned by NYPA. Construction of a second planned 500-MW Astoria Energy Project has
been delayed.
In 2005, the PSC approved a joint proposal among Con Edison, DPS staff, and other parties that
called for substantial infrastructure improvements over the next three years. Upgrades will include
several new substations, replacement of outdated cables, and enhancements to Con Edison’s
secondary network system.
See 3.A.3.
1.C. The State requests that the New York Independent System Operator (NYISO) consider the
certainty and availability of primary and backup fuels in valuing capacity from electricity
generators in order to ensure that the reliability of the electricity, natural gas, and petroleum supply and
delivery infrastructures would not be adversely affected if generator fuel supplies are disrupted. As an
alternative, NYISO should consider the certainty and availability of primary and backup fuels in
establishing local reliability rules.
On November 4, 2003, the PSC issued an Order Concerning Interruptible Gas Sales and
Transportation Service in case No. 00-G-0996. In that Order, the PSC decided not to change
alternate fuel inventory requirements at the time and instead to require local distribution companies
(LDCs) to provide prior notice of the occurrence and expected duration of interruptions in gas
service and operational flow orders and provide system alerts upstream and downstream of the city
gate. Under the Order, LDCs must alert interruptible customers when accumulated gas service
interruptions exceed five days of the winter season before February 15.
The Order called for a limited study of domestic heating industry infrastructure with respect to the
distillate and residual fuels used to serve the interruptible gas market. NYSERDA was invited to
manage the study. On October 20, 2004, the PSC issued an Order Approving Expenditures for
Petroleum Infrastructure Study. In this Order, the PSC approved the scope of the study and the
expenditures required to finance the study and gave NYSERDA authority to assess portions of the
expenditures to each LDC in the study area.
3/22/2006
Progress to Date
Work on the study began in November 2004 and a final report is due in early 2006. Following
completion of the study, the PSC will determine whether additional actions and requirements are
necessary to ensure the adequacy of alternate fuel supplies during periods of interruptions.
1.D. The State supports greater energy diversity in all sectors of the economy through investments in
technology and infrastructure development for indigenous and renewable fuels, demand reduction
techniques, and energy efficiency, to reduce the risks associated with single fuel dependency and price
volatility. In addition, the State supports the continued safe operation of nuclear, coal, natural gas,
oil, and hydroelectric generation as part of a diverse portfolio of electricity generation resources.
As part of the New York Energy $martSM program NYSERDA is bringing businesses to New
York that will sell green power. As of October 31, 2005, NYSERDA programs were supporting the
sales activities of three retail green power marketers, which include the participation of various
energy services companies. Annualized sales of green power now approach 200 million kilowatt-
hours.
Since 2002, certificates were issued by the New York State Board of Electric Generation and the
Environment for new highly-energy-efficient power generating plants. :
à NYPA, Astoria, Queens, adjacent to the Poletti Power Project, 500-MW — expected to come
on-line early in January 2006.
à Calpine Corporation, Wawayanda Energy Center, 540 MW, Orange County — abandoned in
December 2005.
à Brookhaven Energy, 580 MW, Brookhaven, Long Island, — permitted but construction has not
commenced
à PSEG, 750 MW, Albany County — operational in 2005.
à Empire State Development Corporation, 505 MW, City of Rensselaer — construction delayed.
à Astoria Generating Company, two 500 MW plants, Queens, New York — one plant constructed
and operating in 2005, the second placed on hold.
à KeySpan, Ravenswood, 250 MW, Huntington, New York — operating in 2005.
As of November 2005, TransGas Energy Facility’s 1,100 MW project in Brooklyn, New York, is
the last project remaining in the Article X review process.
In 2002 and 2003, NYPA and the Long Island Power Authority (LIPA) issued solicitations for a
total of 150 MW of renewably generated power.
In 2005, LIPA announced a 20 MW wind project at the site of the former Shoreham nuclear plant.
A second project for 140 MW of offshore wind southwest of the Robert Moses State Park is
expected to be completed by 2008.
3/22/2006
Progress to Date
Through the Governor=s Coordinated Demand Response Working Group (CDRWG), NYPA, LIPA,
DPS, and NYSERDA achieved critical peak load reductions of approximately 1,500 MW during the
summer of 2003 by implementing energy efficiency and curtailable-load-reduction measures. Of
that total, nearly 400 MW of reductions were achieved in New York City. The NYISO=s accounting
rules for peak reduction, as defined by the NYISO tariff, are expected to reduce measured customer
participation in the LIPA peak reduction program in 2004 and beyond.
The PSC established an environmental disclosure program that identifies the sources of electricity
supplied by utilities and energy services companies and enables consumers to identify and choose
renewables and traditional energy supplies.
As an outcome of the merger of Niagara Mohawk and National Grid, Niagara Mohawk agreed to
purchase renewably generated electricity (green energy) for those customers willing to pay a price
premium. Within two months of the program=s introduction in September 2002, more than 3,000
customers signed up to purchase green energy. Through 2005, more than 492,000 consumers were
enrolled.
In June 2003, Con Edison issued a Request for Proposals seeking 125 MW in demand reductions to
offset planned reinforcements to its local distribution system. The projects are for reductions in
peak load and will have a positive impact on capacity, reduce installed capacity (ICAP) costs and
reduce peak energy revenues. The winning bidders have been determined and contracts have been
signed. The demandside management (DSM) measures will be phased in, with about two MW in
2005, ramping up to about 47 MW by 2008.
In September 2004, the PSC approved a new gas and steam rate plan for Con Edison that includes a
$5 million natural gas efficiency pilot program and a $0.2 million gas efficiency study to examine
the potential to achieve cost effective gas savings in the Company's service territory. Both elements
are being administered by NYSERDA, using established programs, procedures, and implementation
contractors. In June 2005, NYSERDA's Gas Efficiency Program Plan was approved by the
Commission. The Plan allocates program funds 50 percent to low-income gas efficiency programs;
25 percent to other residential gas efficiency programs, including single- and multifamily buildings,
and 24 percent to commercial gas efficiency programs. The anticipated annual savings to customers
is expected to be more than $1.1 million and more than 1 million therms.
NYSERDA added $200,000 to expand the gas efficiency study statewide. The Con Edison study is
scheduled for completion in February 2006 and the statewide study is scheduled for completion in
the spring of 2006.
3/22/2006
Progress to Date
In March 2005, the PSC approved a new, three-year electric rate plan for Con Edison. To help
offset electric load growth expected over the next few years, thus reducing the need for additional
central generation and distribution and transmission facilities, the rate plan establishes mechanisms
to promote energy efficiency and the cost-effective use of distributed generation and peak load
management initiatives. This will be achieved through a "targeted" program to be administered by
Con Edison, consisting of energy efficiency and distributed generation initiatives, and a "system
wide" program to be administered by NYSERDA, consisting of energy efficiency, distributed
generation, and load management initiatives. Each program will endeavor to achieve up to 150
MW of demand-reductions.
NYSERDA’s action and implementation plans for the system-wide program were submitted in 2005
and are pending action by the DPS.
On October 8, 2003, the New York State Department of Environmental Conservation (DEC) issued
a '401 Water Quality Certification for the R.E. Ginna Nuclear Power Plant as part of RG&E=s
application for renewal of its federal operating license, which was scheduled to expire in 2009. On
May 19, 2004, the Nuclear Regulatory Commission approved the license renewal application for
the plant, extending its licensed operating life by 20 years to September 18, 2029.
The current licenses for the Indian Point units expire on September 28, 2013 and December 15,
2015, respectively. The Fitzpatrick unit=s license expires on October 17, 2014. The Indian Point
Energy Center Units 2 and 3 and the Fitzpatrick Nuclear Station have not filed for life extension
license renewals.
New York State is pursuing alternatives to conventional power plants, including distributed
generation, combined heat and power systems, liquefied natural gas, wood chips, and methanol.
These systems receive support through the State's system benefits charge program, including a $15
million-a-year program to support combined heat and power technology development and
innovative demonstrations. (See Sec. 3.B.3.)
Overall, NYSERDA=s New York Energy $martK Program is making the State more energy
efficient. As of September 2005, more than 1,700 gigawatt-hours of electricity are being saved
each year by program participants.
In 2003, the Federal Energy Regulatory Commission issued NYPA a new 50-year license to operate
the 900-MW St. Lawrence—FDR hydroelectric power project in Massena, New York. The new
license was the result of a multi-year cooperative consultation process involving federal and state
agencies, local municipalities, environmental groups, and business and labor representatives.
NYPA is also conducting a life extension and modernization program for its St. Lawrence—
Franklin D. Roosevelt Project. The $280 million program, begun in 2000, involves replacing the
project’s 16 turbine-generators and almost all other power production equipment. Six units have
been completed to date, and the program is expected to be completed by 2013.
3/22/2006
Progress to Date
In August 2005, NYPA submitted an application for a new 50 year license for its Niagara Power
Project; the current license expires in 2007. A $300-million upgrade to the Niagara Project’s
Robert Moses Niagara Power Plant is planned to be completed by the end of 2006. In addition, the
Authority is also undertaking a $20 million maintenance overhaul of the Niagara Project’s Lewiston
Pump Generating Plant, which operates during periods of peak power demand, supplementing the
electricity from the Moses plant. That work is expected to be completed by mid-2006.
NYPA announced plans for a four-year, $135 million program to modernize and extend the life of
its Blenheim—Gilboa Pumped Storage Project. The program is scheduled to begin in September
2006 when the first of four turbine-generators will be taken out of service. The renovation of the
first unit should be completed by May 2007 with the entire program wrapped up in May 2010.
See 3.A.1.a., 3.A.2., 3.A.4, 3.A.5., and 3.B.
1.E. The State will continue its efforts to reduce traffic congestion and delays and increase energy efficiency
in transportation through a complement of actions that include supporting public transit, transportation
management, intelligent transportation systems, and capital construction.
1.E.1. The State will work to ensure that transportation planning and construction is compatible with
current and planned community development.
As part of the transportation planning process that includes adopting Transportation Improvement
Programs and Long-range Transportation Plans, the New York State Department of Transportation
(DOT) is working with its regional and local partners to incorporate projects consistent with the
State Energy Plan. These projects are consistent with the Quality Communities Interagency Task
Force Report, dated January 2001. Guidance has been provided to regional offices and
Metropolitan Planning Organizations regarding the State Energy Plan=s recommendations.
1.E.2. The State supports expanding intermodal freight capabilities as a means to reduce transportation sector
energy use.
The State is making progress in expanding intermodal freight capabilities in all parts of New York.
Upstate, construction of facilities in Buffalo, Rochester, and Plattsburgh is proceeding or has been
recently completed. Downstate, the State is moving forward on an Environmental Impact Statement
for the use of the former Pilgrim State Hospital site as an intermodal terminal. Improvements are
also planned for the intermodal facilities at Harlem River Yard and the Hunts Point Terminal.
1.E.3. The State=s emphasis on maintaining its existing transportation infrastructure through capital
construction programs will be continued.
Emphasis on maintaining existing transportation infrastructure continues. Of the current road
construction program, approximately 96 percent is for infrastructure maintenance and repair. DOT
has adopted a strategy placing infrastructure and operations first. While the size of future programs
is not known, a high level of commitment to this State Energy Plan recommendation is expected to
continue. In other transportation modes, a similar situation exists. The majority of rail funding
goes for infrastructure repair. Similarly, approximately 90 percent of transit funding is used for
replacement buses and transit vehicles.
3/22/2006
Progress to Date
1.E.4. The State will work more closely with utility companies to better identify and, if possible, design
project work around utility facilities. The State will work in partnership with municipal governments
to accomplish this objective for municipal projects.
DOT and the utility industry have continued the executive-level partnering effort they began in
2002 to review and revise guidelines for coordinating with the utility industry. Highway Design
Manual, Chapter 13, was issued in June 2003 and incorporated much in the way of utility
coordination improvements. In addition, DOT representatives have met with representatives of the
Federal Highway Administration and the NYS DPS to discuss concerns and options related to new
utility accommodations on DOT rights-of-way, particularly along controlled access facilities. An
in-house task force has been established to develop policy recommendations in this regard.
Policy Objective 2. Stimulating sustainable economic growth, technological innovation, and job growth in the
State=s energy and transportation sectors through competitive market development and government support.
2.A. The Energy Planning Board recommends reauthorization of Public Service Law Article X, scheduled
to expire on January 1, 2003, relating to the siting of new major electric generating facilities.
In 2003, the Governor introduced a program bill to address power plant siting. Several legislative
proposals have passed the Senate or the Assembly but no consensus has been reached. Numerous
proposals were introduced in 2004 and 2005 but none were passed.
2.B. The Energy Planning Board recommends reauthorization of Article 6 of the Energy Law, for
statewide energy planning, scheduled to expire on January 1, 2003. Modifications should include
reducing the forecasting period for energy demand and prices from 20 years to 10 years and changing
statutory language to reflect changes in the electricity industry.
2.B.1. With respect to the reauthorization of Article 6, the Energy Planning Board should meet annually to
coordinate development and implementation of energy-related strategies and policies, receive reports
from the agencies= staffs on the compliance of major energy suppliers with its information filing
requirements, and receive summary reports on the information filed.
2.B.2. With respect to the reauthorization of Article 6, the information filing regulations of the Energy
Planning Board should be modified to recognize new entrants into the energy marketplace and the
need for pertinent energy-related information and data.
In 2003, 2004, and 2005, the Governor introduced program bills to address Article 6
reauthorization. Several legislative proposals have passed the Senate and Assembly but no
consensus has been reached.
2.C. The State supports working expeditiously toward establishing a regional market in the northeastern
portion of the country.
2.C.1. The State will continue to participate in negotiations to bring about a larger, regional common market in
order to ensure the incorporation of best practices of the New York Independent System Operator
(NYISO) and fair representation by market participants, including affected state governments, within
the common market governance structure.
3/22/2006
Progress to Date
2.C.2. Any system developed for merging the NYISO into a larger market must be designed to incorporate
appropriate State and local reliability requirements and ensure that short-term economic pressures
do not adversely affect the reliable operation of New York=s integrated electric system. In addition, any
future system must allow full participation of demand management resources in the competitive
procurement process.
The New England Independent System Operator (ISO-NE) and the NYISO filed a joint proposal to
the FERC in August 2001 to create a regional transmission organization. Following issuance of
FERC=s Standard Market Design (SMD), the NYISO and ISO-NE withdrew the proposal to focus
on further developments of a northeast SMD. The State continues to advocate for more seamless
regional market.
The FERC approved a Regional Transmission Organization (RTO) filing for the ISO-NE.
Achievement of this status for the ISO-NE fostered regional markets by reducing the operational
barriers known as seams. As part of the filing, and pursuant to an agreement with the NYISO,
Apancaking@ rates, or paying multiple transmission rates for transactions involving multiple
transmission providers, were eliminated on December 1, 2004.
The biggest seams issue addressed in the ISO-NE filing, other than elimination of pancaking rates,
continues to be virtual regional dispatch between New York and ISO-NE.
The NYISO implemented its SMD early in 2005.
2.D. The State will move expeditiously to a fully-competitive retail electricity marketplace while
maintaining appropriate customer service protections.
2.D.1. The State supports the unbundling of electricity services and implementing statewide competitive
services for metering, billing, and other services for which competition has the potential to lower
costs and improve service quality.
In 2002, the New York Legislature enacted the Energy Consumers Protection Act of 2002 (ECPA)
amending the Home Energy Fair Practices Act. ECPA, which is being implemented by the PSC,
requires that residential customers of energy services companies (ESCOs) shall receive the same
consumer protections as those traditionally provided by regulated utility companies. The PSC
issued regulations on this issue for ESCOs in 2004
As part of a national effort to develop uniform procedures, on November 21, 2003, the PSC issued
revised Uniform Business Practices based on its experiences with retail competition during the past
several years.
The PSC directed that customer payments on bills containing both ESCO and distribution utility
charges must now be prorated among the parties, rather than being first allocated to utility charges,
as had been the case in the past. This change is expected to ensure a fairer distribution of customer
payments on bills and will improve the cash flows of the ESCOs.
2.D.2. The State will stimulate technological and institutional solutions that promote price responsive load
management and load control technologies for all customer classes as appropriate, paying particular
attention to the multifamily residential sector throughout New York State. The State supports the use of
interval meters, where appropriate, to enable customers to respond to real-time electricity prices.
3/22/2006
Progress to Date
NYSERDA developed the Peak Load Reduction Program (PLRP) to promote price responsive load
management. Direct load controls, real-time pricing (RTP), and time-of-use (TOU) rate options are
promoted. The PLRP pays for 70 percent of project costs to install interval meters which will help
customers to respond to TOU and RTP. Through September 2005, the PLRP enabled facilities to
reduce summer peak demand by more than 505 MW statewide by installing and using curtailment
technologies such as direct load controls and permanently reducing their base load by implementing
improvements such as lighting and HVAC measures. Through September 2005, reductions of 238
MW were realized in Con Edison=s service territory alone.
Through the Comprehensive Energy Management program, NYSERDA has approved the
installation of more than 34,000 interval meters and more than 15,000 load control devices in 556
multifamily buildings. Using these meters, building owners, operators, and tenants will be able to
take advantage of variable price signals from utilities to lower energy costs.
Beginning in fall 2004, NYSERDA implemented a first-of-its-kind pilot program in Westchester

County that incorporates the installation of advanced interval meters in 150 single family homes
coupled with a time-of-use rate offered by an energy services company. Energy use data and
patterns will be examined throughout the final year of the two-year pilot to determine future steps.
NYSERDA also conducted a summer time-of-use pilot in 3,000 multifamily units in New York City
with the New York City Economic Development Corporation. Results are being evaluated and
plans are being formulated to continue the pilot through Summer 2006.
In 2005, the Westchester Smart Homes pilot had a total savings of $5,392; 89 percent of
participants averaged savings of $63 per household. The multifamily real time pricing pilots’
projected billing for summer 2005 indicated that 55 percent of residents would have saved between
$1.59 and $5.68 per month.
The PSC provides ongoing regulatory support for the NYISO's Price Responsive Load Programs.
The PSC previously ordered utilities under its jurisdiction to file tariffs under which customers
would be allowed to participate in the NYISO incentive programs. The Emergency Demand
Response Program (EDRP) and the Day Ahead Demand Response Program (DADRP) are both
voluntary programs through which customers are paid for curtailing load. EDRP is initiated by the
NYISO for reliability purposes during emergencies and customers provide curtailment voluntarily.
Under DADRP, customers provide bid prices at which they would be willing to curtail usage the
day before they would be called upon to curtail.
As of October 18, 2005, NYISO demand programs had enrolled the following:
à Special Case Resources (SCR) that participate in the Installed Capacity (ICAP) market — 1794
participants representing 1,120 MW.
à Emergency Demand Response Program (EDRP) — 917 participants representing 597 MW.
à Day-ahead Demand Response Program (DADRP) — 19 participants representing 394 MW.
3/22/2006
Progress to Date
In 2003, an EDRP call on August 15 resulted in approximately 520 MW of load curtailment. The
NYISO also facilitates load curtailment through its Special Case Resources (SCR) program,
whereby customers receive a contractual price in exchange for curtailing load for a specified period
when called upon by the NYISO. In 2003, an SCR call on August 15 resulted in approximately 369
MW of load reduction. No customers were called by the NYISO in 2004. On July 27, 2005, the
NYISO called EDRP and SCR for zones G through K, which resulted in approximately 323 MW of
SCR and 154 MW of EDRP load reductions.
On April 30, 2003, the PSC instituted a proceeding to evaluate the need for changes in existing
voluntary real time pricing programs offered by five of the six major electric utilities operating in
New York. On October 30, 2003, the PSC issued an order directing the utilities to undertake more
focused and enhanced customer education and outreach efforts aimed at identifying large volume
customer who might have the greatest potential for shifting and reducing loads in response to high
hourly market commodity prices. The PSC chose not to impose expanded mandatory real-time
pricing programs at that time. However, on September 23, 2005, as a necessary response to
burdensome electricity price increases, the Commission decided to accelerate the New York
utilities' implementation of RTP programs, directing them to file draft tariffs that would make RTP
mandatory for their largest customer classifications that currently provide service at mandatory
time-of-use rates. The Order also directed the filing of expanded outreach and education plans
needed in support of the accelerated RTP effort.
The PSC continues to encourage utilities to actively participate in NYISO programs. In conjunction
with NYSERDA and the NYISO, the PSC sponsored targeted outreach and education forums
describing NYISO programs throughout the state. The PSC attends working group meetings and
continues to be involved in the process of refining NYISO programs to encourage participation.
The PSC also advises on the programs= evaluation processes to determine their effectiveness.
2.E. The State, in coordinating rebuilding efforts in lower Manhattan with private developers following
the terrorist attacks of September 11, 2001, must ensure that these efforts maximize the use of energy
efficient and environmentally sound transportation services and building design and construction
practices to reduce energy use and costs, and emissions.
Governor Pataki proposed and the State Legislature approved legislation to provide 80 MW of
power for displaced World Trade Center (WTC) tenants and other lower Manhattan businesses
affected by the September 11 terrorist attacks. The economical electricity, which had been
previously supplied by NYPA to the Port Authority of New York and New Jersey for the WTC, has
helped return more than 43,000 jobs to lower Manhattan.
Agencies constructing transportation facilities in lower Manhattan have collaborated on an

Environmental Analysis Framework and Performance Commitments. A key element of this
framework is the AConstruction Environmental Protection Plan@ that requires project sponsors to
commit to protect environmental resources during construction. This includes use of clean fuels
and use of diesel oxidation catalyst technologies for construction equipment. DOT, which is the
first transportation agency to have projects under construction in Lower Manhattan, has included
these requirements in its construction contracts.
3/22/2006
Progress to Date
To ensure that air quality is maintained during the reconstruction of lower Manhattan, the State has
initiated a plan that will control emissions from non-road construction equipment by requiring the
use of ultra-low sulfur diesel fuel and best-available retrofit technologies to reduce the emissions of
fine particulate matter and NOx, establish a process to identify the best available control technology
for a wide range of construction equipment, conduct joint project reviews with U.S. EPA, U.S.
DOT, the New York State Department of Environmental Conservation, and NYSDOT, and
establish a workgroup to identify and implement emission control strategies like traffic signal
improvements, commuter choice programs, and Ozone Action Days programs that promote public
transportation and clean, alternative fuels for fleets.
In addition, NYSDOT, the Lower Manhattan Construction Command Center (LMCCC), NYSDEC,
U.S. EPA, and New York City transportation agencies have developed a special purpose air quality
monitoring plan (AQMP) for particulate matter for Lower Manhattan. The data will assist the
LMCCC in managing overall construction in Lower Manhattan, in determining if construction-
related activities are causing elevated concentrations of particulate matter in nearby neighborhoods,
and, if so, what further construction-related measures are appropriate to minimize such impacts.
On February 4, 2004, U.S. EPA approved New York State Implementation Plan (SIP) revisions
involving the one-hour Ozone Plan which is intended to meet several Clean Air Act requirements
for the New York portion of the New York-Northern New Jersey-Long Island non-attainment area.
These requirements include Reasonable Further Progress Plans; projection year inventories and
transportation conformity budgets for milestone years 2002, 2005, and 2007; ozone contingency
measures; Reasonably Available Control Measure Analyses; one-hour Ozone Attainment
Demonstrations; and enforceable commitments. The intended effects of these actions are approval
of programs required by the Clean Air Act which will result in emission reductions that will help
achieve attainment of the newly adopted eight-hour national ambient air quality standard for ozone
in the New York, northern New Jersey, and Long Island non-attainment areas. The eight-hour
standard is more stringent than the one-hour standard that was replaced on June 15, 2005.
As part of the rebuilding effort in lower Manhattan, the World Trade Center 7 (WTC) has been
registered with the U.S. Green Buildings Council to obtain a Leadership in Energy and
Environmental Design™ (LEEDJ) rating for the building core and shell. Sustainable Design
Guidelines were developed for the site, and NYSERDA, the Port Authority of New York and New
Jersey, and the Lower Manhattan Development Corporation co-funded a Reference Manual to
complement the Design Guidelines. Both documents will be used for all construction projects at the
WTC including buildings, the victims= memorial, open spaces, and the subway and PATH
terminals. WTC buildings will be LEEDJ compliant and meet the requirements of Executive
Order 111.
3/22/2006
Progress to Date
The Freedom Tower, like the other structures at the WTC, will comply with the WTC Sustainable
Design Guidelines, the requirements of Executive Order 111, and the United States Green Building
Council's LEEDTM rating program. NYSERDA is negotiating with the New York Power Authority
to use fuel cells for power in the structure. Engineers are completing a feasibility study calling for
the use of river water for cooling at the entire site. Other planned energy efficiency measures
include high performance glazing, reduced lighting power densities, daylight dimming controls in
perimeter spaces, demand controlled ventilation, and displacement ventilation in the lobby space.
With the implementation of these measures, the Freedom Tower will substantially exceed the
efficiency requirements of Executive Order 111 and the New York State Energy Code.
In 2005, NYSERDA provided technical assistance to the New York City Council and New York
City Economic Development Corporation that was used as the basis for recently enacted New York
City legislation requiring certain municipal buildings to comply with requirements necessary to
achieve a LEED™ Silver rating.
2.F. The State will continue to strive to reduce energy costs for all New Yorkers with the expectation of
narrowing the disparities between New York=s costs and costs in other states and regions of the
country.
In September 2005, Governor Pataki issued a Nine Point Energy Action Plan to help combat the
recent significant increases in energy prices brought on by growing world demand and hurricane
damage to domestic natural gas and petroleum supplies, and to increase energy efficiency, diversity
and security. Among the items called for by the nine-point plan to mitigate energy prices increases
are: home heating tax credits for the elderly; home energy assistance for elderly and low-income
households; tax credits for home heating systems upgrades; a sales-tax-free week for Energy Star
appliances; and bulk purchasing of electricity by the State.
Rochester Gas and Electric Company (RG&E). In case 02-E-0198, on March 7, 2003, the
Commission issued an order implementing a delivery rate freeze which included an incremental
$15.6 million write-down of deferred expenses.
In case 03-E-0765, the Commission issued an Order in May 2004 effectuating a five-year base
delivery rate freeze through December 31, 2008 and instituting a separate retail access surcharge to
recover $7.4 million a year. customers also received a cash refund totaling $110 million over the
first three years as a portion of the net gains from the sale of RG&E’s Ginna nuclear facility. An
additional $120 million in net gains were booked in the Asset Gain Account for ratepayers’ benefit
beyond the current five-year rate plan term.
Jamestown Municipal Electric Company. In case 04-E-1485, on September 29, 2005, the
Commission approved a 25% rate increase to be phased in over three years, rather than the 32%
requested by Jamestown. The utility’s base electric rates had not changed in the 10 years preceding
this decision.
Orange and Rockland Electric Company. The company’s rates were established prior to the 2002
State Energy Plan and remain unchanged.
3/22/2006
Progress to Date
Central Hudson Gas & Electric Co. Central Hudson’s rates have remained constant since 2001.
Central Hudson’s most recent electric rate plan, case 00-E-1273, was approved by a Commission
Order issued in October 2001. Although that plan expired on June 30, 2004, the utility was allowed
to continue with its existing rates for two years, through June 30, 2006, while deferring some
expenses. Many non-price features expired on June 30, 2004, including service quality, reliability,
and customer service. A collaborative was established by the parties to the case and a proposal for
addressing the non-price features was approved by the Commission in June 2004.
Consolidated Edison of New York, Inc. In case 04-E-0572, the Commission, on March 24, 2005,
issued an Order limiting Con Edison’s rate change:
à A $104.6 million delivery service revenue increase was allowed in rate year one accounting for
4% on delivery rates rather than the 22%, or $550 million, sought by the company.
à No rate change was allowed for the second year. $58.6 million in delivery service revenue was
deferred, as was $1.5 million in interest that would accumulate at the unadjusted customer
deposit rate.
à $220.4 million in delivery service revenue was allowed in rate year three rather than the $289
million sought by the company.
The Power for Jobs program provides low cost power to more than 700 employees and is linked to
the creation and preservation of nearly 300,000 jobs. In August 2002, Phase Five of the Power for
Jobs program authorized making 183 MW of electricity available at reduced cost to new and
continuing Power For Jobs employers. As of July 2003, Phase Five of the Power for Jobs program
was completed. In August 2004, the Governor signed legislation to extend the Power for Jobs
benefits to existing recipients through December 31, 2005. Allocations of low cost power are
provided to Power for Jobs employers based on maintenance of job commitments. Legislation
signed in August 2005 extended the Power for Jobs program for existing recipients until December
31, 2006.
Through 2004, energy costs for New Yorkers were declining relative to the United States as a
whole and other regions of the country. While New York=s retail energy prices remain generally
higher than national average prices for comparable fuels, improvements in the differential between
New York and U.S. prices have been observed since 1997 for electricity and natural gas. During
the period 1997 through 2004, New York=s all-sector electricity price in nominal dollars increased
7.1%, going from 11.2 cents to 12.0 cents per kWh, while the national average rose 10.2%.
During the same period, New York=s residential natural gas price in nominal dollars increased
28.5%, going from $9.73 to $12.42 per thousand cubic feet, while the national average rose 54.8%.
3/22/2006
Progress to Date
In November 2002, New York State Electric & Gas Corporation’s (NYSEG) rates for gas
distribution delivery service were frozen through December 2008. At that time, NYSEG was
allowed to terminate its cap on the total customer price, including commodity costs, and replace it
with a mechanism to charge customers the actual market price of gas. The resulting increase in
customer bills will place NYSEG at the same pricing level with other utilities. NYSEG's gas
revenue requirement has been frozen for seven years. The company last changed its base rates on
August 1, 1998. At that time, the Commission approved a base rate reduction of approximately
$9.6 million on an annual basis as part of a four year settlement through July 31, 2002. By order
effective November 20, 2002, the Commission adopted a joint proposal that established a rate and
restructuring plan that froze delivery service revenues through December 31, 2008 (i.e., for 6.25
years). The plan reflected the imputation of savings resulting from the merger with RG&E and also
established a Phase II to consider revenue neutral rate design changes, further unbundling of
delivery service rates, resolution of marketer issues, implementation of a competition performance
mechanism, as well as other issues. Phase II issues were resolved through two separate
Commission orders, effective September 23, 2003 and September 23, 2004, which adopted joint
proposals. The company is not eligible to file for new rates until January 2008.
In September 2003, the PSC approved a joint proposal that extended National Fuel Gas Co.’s
(NFG) prior rate plan, freezing rates until October 2004 and providing for a $5 million annual
customer credit. In September 2004, the PSC extended the $5 million annual customer credit,
included in NFG's current rate plan, until October 1, 2005. In July 2005, the Commission adopted a
two year rate plan ending July 2007 and decreasing gas delivery bills $15 million (2%) each year,
including the retention of benefits from the restructuring of revenue tax charges and flow-through to
customers of deferred revenue tax credits. The company is eligible to file for new rates in summer
2006.
In May 2004, gas rates for Rochester Gas and Electric Company (RG&E) were frozen for four years
until 2008. The company will be permitted to make certain changes in the way it collects supply
costs and costs associated with retail access programs that enable customers to purchase natural gas
from competitive suppliers. Resulting increases in customers= bills will put RG&E on par with
other utilities.
Effective May 1, 2002, Con Edison's gas distribution rates were reduced by $25 million for three
years through September 2004. In September 2004, the PSC granted Con Edison an increase of
$46.8 million, or 4.3%, a year. The increase includes recovery of $35 million set aside in 2002 to
offset costs resulting from destruction of the World Trade Center. Allowance was made for
possible future cost recovery from governmental agencies and insurance carriers. Resulting
increases in customers' bills will be constant until 2007.
3/22/2006
Progress to Date
National Grid's gas revenue requirement has been frozen for 10 years. National Grid last changed
its base rates, or delivery service rates, on December 20, 1996 when an annual decrease of $10
million was approved by the PSC as part of a three-year settlement through October 31, 1999. By a
subsequent Order Adopting Terms of Settlement, the October 1999 rates remained in effect for an
additional three years and ten months, i.e., through August 31, 2003. By another Order authorizing
the merger of National Grid and Niagara Mohawk, the PSC approved a joint proposal extending the
base rate freeze for gas customers for an additional 16 months through December 31, 2004. The
company is eligible to file for new rates at any time.
Central Hudson Gas & Electric Corp.’s (Central Hudson) rates have not increased since 1991. In
October 2001, the Commission adopted a three year rate plan that froze gas delivery rates. On June
2004, the Commission modified the rate plan but kept gas delivery rates at the same level. In
August 2005, Central Hudson filed for new rates that would increase gas delivery rates by
$18,082,000 (15% total bills, 41% delivery portion of bills).
Policy Objective 3. Increasing energy diversity in all sectors of the State=s economy through greater use of energy
efficiency technologies and alternative energy resources, including renewable-based energy.
3.A. The State supports significantly increasing energy resource diversity in electricity generation and
transportation through increased reliance on indigenous, renewable, energy efficiency, and demand
management resources.
Energy resource diversity in the transportation sector continues to increase. For example, the New
York Thruway Authority (Thruway Authority) is piloting the use of ethanol in western New York,
the New York State Department of Corrections (DOCS) has purchased bi-fuel propane vehicles, the
Department of Environmental Conservation (DEC) is using biodiesel at several locations, and DOT
is piloting compressed natural gas (CNG) conversions in its heavy duty trucks B so far 20 trucks
have been converted and funding is in-place to convert 11 more. Under contract to the New York
State Office of General Services, Clean Energy, Inc. is operating eleven CNG refueling sites which
are open to the public.
Through its alternative-fuel vehicle deployment programs, NYSERDA is supporting introduction of

more than 850,000 gallons of biodiesel (B-100) fuel and has awarded funds for fleets to procure
1,400 natural gas and hybrid-electric vehicles. Ethanol fueling capacity is being developed to help
the State fleet meet its fuel diversity and reduced vehicular emissions goals. Six of the State=s
largest urban communities, including the entire metropolitan area in and around New York City,
have been designated by U.S. DOE as Clean Cities, demonstrating leadership by these areas in
introducing alternative-fuel and advanced-technology vehicles.
See 1.D..
3.A.1. The State adopts the goal of reducing statewide primary energy use in 2010 to a level that is 25
percent below 1990 energy use per unit of Gross State Product (GSP). The State adopts the goal of
increasing the share of renewable energy as a percentage of primary energy use 50 percent by 2020,
up from 10 percent in 2000 to 15 percent in 2020.
3/22/2006
Progress to Date
Statewide energy use per unit of GSP in 1990 was 6.09 mBtu and, by 2004, statewide energy use
had dropped to 4.84 mBtu per unit of GSP, a reduction of 1.25 mBtu or 20.5%. Reductions
continuing at this rate will allow the State to achieve its goal in 2008.
Through calendar year 2004, the relative contribution of renewable energy to New York’s primary
energy use has remained about 10%. However, many of the specific initiatives begun following the
issuance of the final State Energy Plan in 2002, such as the RPS program, will begin to show
positive measurable results over the next few years.
As a result of actions during the 2002 legislative session, localities and school districts are allowed
to accept payment in lieu of taxes on wind and solar energy systems. Also in 2002, legislation was
passed to assist wind generation facilities in Lewis County.
Through September 2005, New York Energy $martK energy efficiency and research and
development programs provided approximately 1,000 megawatts of demand reduction potential.
DOT convened an internal State Energy Plan Implementation Group chaired by the Environmental
Analysis Bureau=s Air Quality Section. In 2003, recommendations were adopted and guidance was
provided to regional offices and metropolitan planning organizations to move forward with these
efforts. Based on the adoption of Transportation Improvement Programs and Long-range
Transportation Plans, projected savings of energy are 5.5 trillion Btus by 2025. Work is ongoing to
further reduce energy use in the transportation sector.
3.A.1.a. The State should competitively solicit 60 to 120 megawatts of renewable electricity generation to meet
the requirement of the Governor=s Executive Order No. 111, which requires up to 10 percent of
State facilities= electricity be provided from renewable resources by 2005 and 20 percent by 2010.
The First Annual Energy Report for Executive Order No. 111 was published by NYSERDA in July
2003, and the first edition of the Guidelines for Executive Order 111 was published by NYSERDA
in December 2003. The second edition of the Guidelines was published in December 2004.
Progress has increased each year, resulting in purchases of 375,000 kilowatt-hours in 2002. In
2003, a number of State agencies made independent purchases of wind power which will be used to
meet part of their Executive Order No. 111 requirements and several more installed on-site
generation, bringing renewable energy purchases to more than 4,400 megawatt-hours. In FY 2003-
04, the latest year for which actual data is available, affected State agencies purchased more than
13,200 megawatt-hours of renewable energy. Based on the latest projections from the agencies, the
2005 goal (i.e., 250,000 MWh) will be met in FY 2005-06.
DOT has opened a new vehicle equipment maintenance repair shop that uses the latest energy
efficient technologies including geothermal heat, a gas turbine generator, and solar panels to reduce
energy demand and provide cost savings in the normally high-energy-demand facility. It is now
undergoing system testing and review. In addition, DOT has obtained multiple price quotes for
green energy options through NYSERDA and is in the process of selecting a firm to be in
compliance with this Executive Order 111 requirement. DOT has also been working with
NYSERDA and is currently in the process of selecting firms to help with an energy audit of its
thirty-plus Capital District facilities. The program will allow identified energy savings to be used to
pay for energy related building improvements. It is hoped that the results can then be applied across
the state for the benefit of the remaining 300 DOT facilities.
3/22/2006
Progress to Date
3.A.1.b. The New York Power Authority should competitively solicit bids for long-term contracts for the
purchase of 100 megawatts of electricity capacity from renewable energy resources. New York
Power Authority should increase its annual investment in energy efficiency by 25 percent and
continue to cooperate with NYSERDA and LIPA in program offerings and delivery.
NYPA has been investing about $100 million in energy efficiency programs annually, since 2001,
when the Energy Plan was first prepared, up from about $2 million in 1990 and about $50 million in
1995. NYPA’s spending on energy efficiency remains unchanged since 2001.
In 2005, NYPA trustees authorized the purchase of up to 56 MW of wind energy for delivery to the
Authority’s southeastern New York governmental customers. These purchases will extend over a
ten year period beginning in 2008.
From January 1, 2004 through November 30, 2005, NYPA’s Energy Services Program completed
106 projects at 189 facilities. These energy efficiency projects will reduce the electricity costs of
schools and other public buildings by more than 42,269 megawatt hours annually and help avoid
63,037 tons of greenhouse gas emissions each year.
Among its array of new clean power projects, NYPA has installed solar power photovoltaic
applications (690 KW existing and in progress); fuel cells, including several powered by anaerobic
digester gas at sewage treatment plants (2,850 KW existing and in progress); microturbines using
waste gas as the fuel source (60 KW existing). Projects involving landfill gas, biomass gasification,
and new technologies such as Stirling engines are also in development.
Governor Pataki proposed and the State Senate passed legislation (S.4830) to enhance the
availability of energy efficiency upgrades for pubic facilities by streamlining the procurement
process for programs offered by NYPA and NYSERDA. The legislation has not been approved by
the Assembly and is expected to be reintroduced.
3.A.1.c. The Long Island Power Authority (LIPA) should competitively solicit bids for long-term contracts
for the purchase of 100 megawatts of electricity capacity from renewable energy resources. LIPA
should increase its annual investment in energy efficiency by 25 percent and continue to cooperate
with NYSERDA and the New York Power Authority in program offerings and delivery.
In 2006, LIPA projects spending about $44 million on energy efficiency efforts, a more than 40%
increase since 2001.
In 2004, LIPA selected Florida Power and Light (FPL) as the developer to construct a 140-MW
offshore wind project. Environmental studies are under way and LIPA is negotiating the necessary
agreements with FPL. In April 2005, LIPA and FPL filed a formal application for permit with the
U.S. Army Corps of Engineers. At this time, the commercial operation date is expected to occur in
2008.
3/22/2006
Progress to Date
In 2004, LIPA selected six firms to assist in an aggressive demand side management program.
Contracts were executed with five energy services contractors in 2005 and beginning in 2006 the
firms will target nonresidential, small and large commercial, and multifamily customers for energy
efficiency projects. The goal is to reduce load by 73 MW. The contracts have been fully negotiated
and approved by the Office of the New York State Comptroller. With the rollout of this program in
2006, LIPA’s overall demandside management (DSM) impact for 2006 will be approximately one-
third more than 2005.
In 2005, LIPA issued a request for proposals (RFP) for 10 MW of fuel cells to be installed on Long
Island. The results of the solicitation are expected to be released in early 2006.
Beginning in 2004, LIPA adopted NYSERDA=s ENERGY STAR7 Labeled Homes Program for
residential new construction, and, in fall 2005, NYSERDA=s Home Performance with ENERGY
STAR7 Program for existing homes was also adopted on Long Island.
From the summer of 2000 through the summer of 2003, LIPA, NYPA, and NYSERDA successfully
collaborated on the Keep Cool residential peak load reduction program that resulted in
approximately 235 KW of old, inefficient units being replaced with ENERGY STAR7 models. This
effort resulted in 57 MW of permanent peak load reduction and more than 100 MW of behavior
change reduction stemming from a coordinated public appeal to shift energy intensive tasks from
peak periods. In 2004, the consumer bounty was eliminated and an awareness campaign
coordinated with the New York Power Authority became the primary means of achieving energy
reductions. In 2004 and 2005, retailers were given the option of receiving incentives based on their
sales of ENERGY STAR7 room air conditioners. The turn-in component was eliminated and
consumers were not provided incentives for recycling their old, inefficient units.
3.A.2. NYSERDA will examine and report on the feasibility of establishing a statewide renewable portfolio
standard (RPS) for electricity generation, assess the economic impacts of an RPS, and determine
whether and how an RPS might be harmonized with a restructured and competitive electricity market
and the goals from planned State actions to promote renewable energy development.
Pursuant to recommendations in the State Energy Plan, NYSERDA prepared a paper entitled
Preliminary Investigation into Establishing a Renewable Portfolio Standard in New York assessing
issues associated with introduction of a renewable portfolio standard (RPS) in New York. The
paper became a foundation document for the PSC=s RPS proceeding.
On February 19, 2003, the PSC instituted a proceeding* to develop and implement an RPS for
electric energy retailed in New York. The Order established as a working target that 25 percent of
the energy retailed in New York would be generated from renewable resources within 10 years.
The proceeding commenced with a collaborative effort to develop and design options for an RPS.
A number of working groups were formed; working objectives were developed; and several
technical conferences were held. After initial comments were filed on March 28, 2003, an
additional round of initial comments were filed by parties on September 26, 2003. Reply comments
were filed by parties on October 31, 2003.
3/22/2006
Progress to Date
On September 24, 2004, the PSC issued an order regarding the retail renewable portfolio standard
that identified NYSERDA as statewide administrator of the RPS. As administrator, NYSERDA
will contract with suppliers, on a competitive basis, for the rights to the environmental attributes of
energy produced in accordance with the provisions and rules of the RPS program, subject to change
by order of the PSC.
The order reaffirmed the 25 percent overall goal, requiring that 24 percent come from the RPS and
at least one percent be from the voluntary green power market. The order also identified eligible
technologies and presented a schedule and funding levels for the RPS, which is to commence in
2006.
In December 2004, NYSERDA issued an initial solicitation, RFP 916, to procure renewable
attributes. NYSERDA entered into seven contracts for the rights to attributes associated with more
than 821 million kilowatt-hours of renewable generation. Four of the projects are located in New
York and three are located in Pennsylvania, Maryland, and New Jersey. Projects in New York
include Maple Ridge Wind Power, LLC (formerly Flat Rock Wind Power), in Lewis County and
three re-powered hydropower facilities — Spiers Falls, Browns Falls, and Higley Falls — in
Saratoga and St. Lawrence counties.
Maple Ridge Wind Power, LLC, started construction on Phase 1 of the project in summer 2005 and
the construction phase was completed by the end of the year. The project will be commissioned
early in 2006 and expects to have approximately 200 MW of capacity on-line in early spring 2006.
Phase 2 of the Maple Ridge project is expected to commence construction early in 2006 and be in
operation by the end of 2006. The capacity will increase to approximately 330 MW. The
environmental attributes associated with 200 MW of capacity have been purchased by NYSERDA
on behalf of New York ratepayers to satisfy a portion of the procurement obligation under the New
York renewable portfolio standard.
_________________________
* See Case 03-E-0188, Order Regarding Retail Renewable Portfolio Standard, issued and effective
September 24, 2004; Order Authorizing Fast Track Certification and Procurement, issued and
effective December 16, 2004; Order Regarding Petitions for Clarification and Reconsideration,
issued and effective, December 15, 2004.
See 1.B., 1.D., and 3.B.1.
3.A.3. The State encourages greater use of indigenous fuels and renewable-based electricity generation by
pursuing appropriate regulatory reform initiatives, wider application of net-metering programs
where appropriate, continuing review of interconnection requirements, consolidating and enhancing
tax incentives, and supporting development of a renewable fuels industry in New York.
3/22/2006
Progress to Date
In September 2005, Governor Pataki issued a Nine Point Energy Action Plan to help combat the
recent significant increases in energy prices brought on by growing world demand and hurricane
damage to domestic natural gas and petroleum supplies, and to increase energy efficiency, diversity
and security. The 9-point plan includes: (1) home heating tax credits for the elderly; (2) home
energy assistance for elderly and low-income households; (3) energy assistance for small businesses
and farmers; (4) tax credits for home heating systems upgrades; (5) a sales-tax-free week for Energy
Star appliances; (6) tax credits for alternative fuel vehicles; (7) incentives for alternative fuel
production; (8) bulk purchasing of electricity by the State; and (9) access to HOV lanes lanes for
clean and energy efficient vehicles. These initiatives, and others, are currently being discussed with
the Legislature, with the goal of providing short-term price relief and long-term energy
independence
Legislation was signed in September 2002 (1) to expand the net metering statute (Public Service
Law j-66) to include farm waste generation systems of not more than 400 KW, (2) to authorize
LIPA to provide for interconnection of farm waste electric generating equipment, and (3) to provide
real property tax exemptions resulting from any increase in value resulting from such systems for 15
years. Additional legislation was signed in September 2004 to expand net net metering statute
(Public Service Law j-66) to include residential and farm wind generation systems of not more than
125 kW.
In 2002, the PSC approved a rate and restructuring joint proposal for National Fuel Gas Company
(NFG) that includes a provision that allows for greater use of indigenous natural gas. Before
entering into this agreement, NFG would only allow five percent of indigenous gas transported by
marketers to be considered Afirm@ for reliability purposes. The joint proposal increased the amount
to 60 percent. The PSC approved an extension to the plan increasing the level of indigenous natural
gas that will be considered firm to 65 percent in 2003. In 2005, the Commission approved a new
rate case joint proposal that allows 100 percent to be considered firm.
The PSC approved establishment of a committee composed of local producers and NFG and DPS
personnel to identify and implement other improvements to facilitate increased use of indigenous
natural gas. The committee is active and is pursuing pilot programs designed to provide additional
improvements. Topics include quality control procedures, real-time metering, and balancing issues.
Calendar year 2004 production showed an increase of 3,000 Mcf per day i.e., from 13,000 Mcf per
day to 16,000 mcf per day) in the amount connected directly to the NFG distribution system.
The PSC=s Standardized Interconnection Requirements (SIR) were revised at the PSC=s November
2004 session. The major changes consist of an increase in the upper capacity threshold from 300
KW to 2 MW, inclusion of network distribution systems in the Standard, and adoption of the
Underwriter=s Laboratories Standard 1741 for interface equipment certification. The utilities were
directed to revise their tariffs to adopt the revised standards.
3/22/2006
Progress to Date
In April 2003, the PSC ordered utilities to file amended tariffs detailing procedures for
implementing the farm waste net metering law and to allow qualifying farm waste systems up to
400 KW to use the SIR. The SIR would otherwise be limited to on-site generators of 300 KVA or
less. In August 2003, the PSC completed review of the proposed tariffs and ordered some changes.
In October 2003, upon satisfactory completion of the recommended changes, the PSC issued an
order accepting the amended tariffs for use in implementing farm waste net metering. In June 2005,
the utilities filed amended tariffs detailing procedures for implementing the residential and farm
wind net metering law to allow qualifying systems up to 125 kW to use the SIR. In September
2005, the PSC completed review of the proposed tariffs and order some changes to the SIR to
reflect the new legislation.
See 1.D.
3.A.4. The State supports expanding biofuels research and development activities with the goal of creating a
self-sustaining private sector biofuels industry in the State within the next 5 to 10 years. The State will
develop a specific plan for producing, refining, and marketing biomass fuels derived from waste,
soybean, and corn oils, and from paper sludge, municipal solid waste, and other cellulose sources,
working in cooperation with other states. The State supports the commercialization of biofuels
technology and use of biofuels as vehicle fuel, heating fuel, emergency electricity generation fuel, and
in marine applications.
Governor Pataki’s Nine Point Energy Plan (see 3.A.3 above), proposes tax incentives for both
alternative fuel vehicles and alternative fuel production.
DOT used approximately 25,000 gallons of biodiesel (B20) in six locations in 2004 and anticipates
use of more than 50,000 gallons per year.
In 2003, NYSERDA entered into agreements with three manufacturers to assist with identifying
available feedstocks and to address siting issues.
In 2004 and 2005, NYSERDA’s efforts focused on techniques for more economical biodiesel
production, upgrading biodiesel for high-value uses, and improving low-value feedstocks such as
brown grease. Interest in biodiesel manufacturing in New York continues to grow and NYSERDA
provides support as funding permits.
NYSERDA is working with the New York State Offices of General Services (OGS) and Mental
Health (OMH) and the New York State Thruway Authority to site four E-85 ethanol fueling
facilities at state facilities to fuel the State=s growing fleet of E-85 vehicles. Funded by NYSERDA,
this project is expected to be completed by spring 2006, and will help the Clean Fueled Vehicle
Council reach its goals of introducing alternative fuels into the state fleet.
NYSERDA has awarded more than $650,000 for projects to demonstrate the use of biodiesel fuel
(B-20 and B-5) for transit buses, school buses, and municipal heavy duty vehicles throughout New
York State. In 2005 demonstration projects were initiated at a Capital District commercial trucking
company, a utility fleet in Syracuse, and an industrial site in Rochester. A new public biodiesel
fueling facility will be built in Oneonta. NYSERDA provided more than $200,000 for a pilot
program to demonstrate the use of B-20 for transit buses, school buses, and municipal heavy-duty
vehicles in western New York.
3/22/2006
Progress to Date
NYSERDA and the New York State Department of Agriculture and Markets (Ag and Markets)
completed a joint study to evaluate policy options to support a biodiesel industry in New York. The
final report, dated November 2004, is posted on NYSERDA=s website.
Over the past four years (2002-2005), NYSERDA supported a demonstration of B20 biodiesel
blended with low-sulfur home heating oil in 100 homes in the Newburgh area of downstate New
York. The study demonstrated the potential to significantly reduce carbon dioxide and sulfur oxide
emissions from residential sources while providing cost savings as a result of the reduced need for
maintenance associated with the use of the biofuel. In 2004, NYSERDA started a project with
Clickable Oil.com and Schildwachter and Sons, Inc. to commercialize B-20 biodiesel blends in New
York City and on Long Island. Five other New York City heating oil dealers have since joined the
project to form a biodiesel marketing network serving the downstate area. NYSERDA has also
supported biodiesel outreach and demonstration activities in New York City apartment buildings
with Cornell Cooperative Extension.
3.A.5. The State supports research, demonstration, and commercialization of advanced electricity generating
technologies and encourages the retrofit or repowering of existing generating facilities in the State to
maintain the State=s energy diversity.
NYPA is evaluating the potential of Integrated Gasification Combined Cycle (IGCC) technology,
which may offer the possibility of using indigenous coal resources to generate electricity in
compliance with strict environmental standards.
3.B. The State supports the development and use of distributed generation (DG) and combined heat and
power (CHP) technologies at customer sites, with the goal of becoming a national leader in the
deployment of clean distributed generation technology. Primary focus should be on applications where
such technologies can be shown to reduce energy costs, improve electricity system reliability, and
reduce harmful pollutant emissions.
3.B.1. The State should continue its research and development support for DG and CHP technologies and
applications, supporting, in particular, clean and renewable energy-based DG and CHP technologies.
3.B.2. The State should take all reasonable steps necessary to facilitate the interconnection of DG and CHP
resources into the electricity system and increase the use of DG and CHP resources in the State.
3.B.3. The State should offer investment tax credits to spur private sector investment in environmentally-
sound and cost-effective DG and CHP technologies.
DEC has completed work with stakeholders to develop regulations governing emissions from
distributed generation sources. A draft rule is being developed for adoption in early 2006.
In July 2003, the PSC required Con Edison, O&R, NYSEG, and RG&E to develop revised standby
rates. The standby rates for those utilities took effect on February 1, 2004 and apply to distributed
generation customers and wholesale generators to the extent they rely on the local electric utility to
deliver power to replace or supplement their own generation. The PSC previously approved
standby rates for Niagara Mohawk and an order establishing electric standby rates for Central
Hudson Electric and Gas was issued and effective on July 1, 2004.
3/22/2006
Progress to Date
NYSERDA received two grants totaling $600,000 from U.S. DOE and is contributing $190,000 of
system benefits charge funds to the Northeast Regional CHP applications Center. The Center is one
of eight that have been established nationwide and includes New York and seven New England
states. NYSERDA will act as financial administrator of the funds; Pace Energy Project will provide
education and outreach services; and the University of Massachusetts Amherst will deliver technical
assistance. To date, the Center has conducted one training event geared to technical professionals
who might specify CHP systems in building designs. Center staff have given presentations at nine
major conferences, conducted 22 scoping studies for sites including eight in New York, and met
with numerous decision makers who are considering installing CHP systems.
Through 2005, NYSERDA committed more than $55 million for approximately 99 combined heat
and power systems that will install more than 102 MW of new electricity generation capacity.
Approximately 15 MW are currently operational and an additional 87 MW of capacity is expected
to come on line in the next two years. In addition, more than $20 million was committed for more
than 70 projects to develop new distributed generation technologies, which include pilot testing of
laboratory-scale prototypes and other innovative products and equipment, and to conduct new
product feasibility studies. In all, the portfolio of projects attracted approximately $300 million in
leveraged investment in distributed generation and combined heat and power technologies and
applications.
Another important opportunity has emerged for the CHP industry as the recent increases in natural
gas prices have caused widespread interest in alternative and renewable fuels such as landfill gas
and anaerobic digester gas. NYSERDA provides incentives to encourage use of renewable fuels as
a long-term strategy to diversify the State’s energy mix and to promote development of indigenous
resources. Nearly one third of NYSERDA’s DG-CHP projects use renewable fuels and
technologies.
See I.D. and 3.A.3.
3.C. The State supports fuel neutrality in its support for alternative-fueled vehicle technology. The New
York Alternate Fuels Tax Credit program, scheduled to expire on February 28, 2003, should be
extended and consideration given to enhancing it by including all types of alternative- fueled vehicles.
Incentives should also be considered to support the development of an alternative fuels infrastructure in
New York.
The New York State Alternative Fuels Tax Credit was extended twice, once in 2003 and again in
2004. The tax credit for alternative fuel vehicles ended on December 31, 2004, however the tax
credit for infrastructure investments was extended until 2008. The Governor’s nine-point strategic
energy plan, unveiled in September 2005, calls for extensions of the hybrid-electric and alternative
fuel vehicle tax credits. Numerous incentives for alternative-fuel and advanced-technology vehicles
were included in the Federal Energy Policy Act of 2005.
3.D. The State supports federal surface transportation legislation that leads to more energy-efficient
transportation. Specific elements should include increased federal funding for transit, retention of the
Congestion Mitigation and Air Quality program, continued funding for intelligent transportation
systems and transportation systems operations, and modification of the Federal Transportation Equity
Act for the 21st Century (TEA-21) programs to improve rail service.
3/22/2006
Progress to Date
Congress enacted SAFETEA-LU, the successor to TEA-21, in August 2005. New York State
secured language in SAFETEA-LU which increases funding for transit and retains the CMAQ
program. In addition, the new law expands CMAQ eligibility to include diesel retrofits for off-road
construction vehicles and equipment. The new law also permits single occupancy low emission
vehicles, such as hybrids, to use High Occupancy Vehicle (HOV) lanes, so long as traffic flow is
maintained. New York continues to work with its Congressional delegation and other groups to
seek federal legislation that meets New York’s transportation needs and is consistent with the State
Energy Plan.
3.E. The State encourages the Federal government to adopt new corporate average fuel economy (CAFE)
standards for vehicles to address vehicle energy efficiency in a way that protects driver and passenger
safety.
Through the end of 2005, the required federal legislation had not been enacted.
Policy Objective 4. Promoting and achieving a cleaner and healthier environment.
4.A. The State should continue to develop and implement strategies to reduce environmental impacts
from stationary sources of pollution.
The Acid Deposition Reduction Program (ADRP) regulations for sulfur dioxide (SO2) and nitrogen
oxides (NOx) became effective on August 17, 2004. See 4.A.2. for more details.
On February 25, 2003, DEC issued a final State Pollutant Discharge Elimination System (SPDES)
permit for the Lovett Generating Station that will significantly reduce the aquatic impacts from the
station=s once-through cooling technologies. DEC also issued draft SPDES permits for the
Danskammer Electric Generating Facility, on June 25, 2003, and the Indian Point Nuclear
Generating Station, on November 12, 2003, Roseton Generating Station on April 13, 2005, and the
Bowline Point Generating Station on December 7, 2005. These permits, as drafted, will
significantly reduce aquatic impacts from the once-through cooling systems used at these facilities.
On May 14, 2003, DEC released a draft policy providing guidance for assessing and mitigating
impacts from fine particulate matter emissions (PM2.5) from proposed projects. The final policy
and responsiveness summary were published in the Environmental Notice Bulletin on January 14,
2004.
See 4.D. for a thorough discussion of the Regional Greenhouse Gas Initiative (RGGI).
4.A.1. Work with industry to promulgate emission standards for distributed generation.
DEC has begun developing emission standards for distributed generation and combined heat and
power projects. Among the parties involved with the rulemaking are NYSERDA, the DPS, Pace
Energy Project, energy manufacturing associations, emissions equipment and microturbine
manufacturers, independent power producer organizations, and numerous other interested parties
and industry stakeholders.
3/22/2006
Progress to Date
In January 2005, stakeholders were provided with a draft regulation (6 NYCRR 222) in which
emission standards and monitoring and record keeping requirements were proposed for distributed
generation sources. Distribute generation sources with a maximum electrical output of 67
horsepower or more that commence operations after the effective date of the rule would be subject
to NOx and CO2 emission limits. Sources that commenced operation prior to the effective date of
the rule would be subject to a NOx emission limit effective January 1, 2008. A particulate matter
(PM) emission limit would apply to diesel-fired sources effective January 1, 2008. The rule is
anticipated to take effect in June 2006.
4.A.2. Implement the Governor=s Acid Deposition Reduction Program (ADRP), which is expected to
significantly reduce GHG emissions and the acid rain precursors SO2 and NOx.
The Acid Deposition Reduction NOx Budget Trading Program (6 NYCRR Part 237) and the Acid
Deposition Reduction SO2 Budget Trading Program (6 NYCRR Part 238) (collectively, the ADRP)
went into effect on August 17, 2004, when the DEC adopted them as emergency regulations. The
final ADRP regulations went into effect on April 27, 2005.
The purpose of the ADRP is to reduce emissions of NOx And SO2 from fossil-fuel-fired electric
Generating sources statewide through market-based cap-and-trade programs. The ADRP Requires
Electric Generators in New York To reduce SO2 Emissions an additional 50 Percent below levels
Allowed By the federal clean air act=s acid rain program requirements and will be phased in over a
three-year period beginning in 2005. The ADRP requires electric generators to reduce NOx
emissions during the non-ozone season — October 1 through April 31 — to a level commensurate
with the ozone season NOx cap-and-trade program imposed on the same sources under the NOx
Budget Trading Program (6 NYCRR Part 204).
As originally planned and scheduled, the first three seasons of NOx and SO2 allowance allocations
have been issued. The first control period for NOx under Part 237 began on October 1, 2004. and
the first control period for SO2 under Part 238 began on January 1, 2005.
4.A.3. Provide expedited permitting procedures to encourage siting of electric generation facilities that
minimize aquatic and air quality impacts.
In 2002, the New York Legislature passed a Governor=s bill to amend Article X of the Public
Service Law to allow faster certification for certain repowering proposals. While Article X expired
on January 1, 2003, Bethlehem Energy Center qualified for the expedited procedures and began
operations in April 2005.
4.A.4. Work with federal government to develop national strategies to reduce multi-pollutant emissions
from electric generating facilities.
In November 2003, New York joined a lawsuit filed by a number of other states challenging U.S.
EPA=s August 28, 2003 decision that it does not have authority to regulate greenhouse gases
(GHGs) under the Clean Air Act.
New York State is actively reviewing various Congressional proposals and regulatory proposals to
reduce emissions of multi-pollutants (i.e., NOx, SO2 , CO2, and mercury). On May 12, 2005, U.S.
EPA adopted the Clean Air Interstate Rule (CAIR) that applies to electric generation units (i.e.,
large power plants) in most states east of the Mississippi River. CAIR is expected to reduce SO2
emissions by 65 percent in 2015 and NOx emissions by 60 percent in 2015.
3/22/2006
Progress to Date
While the CAIR reductions are significant, more reductions will be needed in order for all counties
in New York and other northeast states to reach attainment with the ozone and particulate matter
(PM) national ambient air quality standards. On February 2, 2004, the Ozone Transport
Commission (OTC), a multi-state organization created by Congress, of which New York State is a
member, announced its formal position on reducing emissions from the electric generating sector.
The OTC=s position calls for NOx and SO2 emissions from these sources to be capped at 1.87
million and 3.0 million tons, respectively, by 2008 and by 1.2 million and 2.0 million tons by 2012.
In addition, the OTC asserts that initial mercury control levels should not exceed 15 tons with an
ultimate performance requirement that would achieve approximately five tons per year by 2015, a
90 percent reduction from current emissions. New York continues to work with the OTC and other
states to find ways to attain the clean air standards.
4.A.5. Use System Benefits Charge funding to promote the development of clean energy generation
technologies.
NYSERDA is considering issuing a solicitation for air pollution control technologies for generation
facilities in 2006.
See 3.A.2., 3.A.5., and 3.B.
4.B. The State should continue to develop and implement innovative strategies to reduce environmental
impacts from mobile sources of pollution.
4.B.1. Work with automobile and truck manufacturers to develop new technologies to reduce emissions from
such vehicles, and to promote the introduction of such technologies into the marketplace.
4.B.2. Promote the introduction of clean fuels, including renewables, low-sulfur diesel, and other alternative
fuels by purchasing vehicles that use such fuels for use in the State fleet and developing incentives to
encourage their use in the private sector.
Regulations placing emissions controls on personal water craft beginning with model year 2006
became effective on August 8, 2002.
DEC supports the U.S. EPA regulations adopted in August 2002 and May 2004 setting more
stringent emissions standards for on-highway and non-road diesel-fueled vehicles.
A number of strategies are being implemented to reduce mobile source emissions, especially in the
downstate area. See 4.D.10. for further information.
DOT is piloting a program on Long Island to install retrofit technology and use clean fuels in a
number of its heavy-duty on-road fleet vehicles. DOT, in partnership with the Thruway Authority,
is implementing a federal grant to install oxidation catalysts and use ultra-low-sulfur diesel (ULSD)
fuel in trucks operating in the lower Hudson Valley. DOT has a contract in place for ULSD at all of
its maintenance repair shops in downstate New York.
3/22/2006
Progress to Date
The Clean Fuel Vehicle Council consists of 18 State agencies, authorities, and offices working to
increase the State=s use of clean-fueled vehicles and fueling infrastructure in order to meet federal
mandates under the Energy Policy Act (EPACT) and the even more aggressive goals of Governor
Pataki=s Executive Order No. 111. In 2004, the State=s clean fuel fleet totaled 4,200 vehicles,
primarily using compressed natural gas (55%) and ethanol (20%) and exceeded EPACT
requirements by approximately 13 percent. In 2005, the State’s clean fuel fleet totaled 5,236
vehicles with approximately 43 percent using natural gas and 29 percent using ethanol. The State
continues to exceed its EPACT requirements.
Five million dollars from the Clean Water/Clean Air Bond Act were awarded by NYSERDA to 74
school districts to install emission-reducing diesel retrofit equipment on 2,200 school buses. An
award was included to the New York City Board of Education to install advanced emission controls
on 300 privately owned buses that also will be using ultra-low-sulfur diesel fuel.
More than 100 compressed natural gas fueling facilities are operational across the State, many of
which are open to the public. OGS recently entered into a contract with a private firm to operate
several of its CNG sites and to build new ones, allowing these stations to be available for public use
and to support market development.
In 2004, the New York State Thruway Authority opened an ethanol station to serve its vehicles in
western New York. DOT is piloting a project to test winter operations and fleet maintenance issues
connected with the use of B-20 in its heavy-duty vehicles. B-20 is a fuel blend containing 20
percent biodiesel and 80 percent low-sulfur diesel fuel. The New York State Department of
Correctional Services (DOCS) operates numerous propane vehicles and currently operates propane
stations at six of its correctional facilities.
New York State has adopted regulations to modify the Zero Emissions Vehicle (ZEV) program to
maintain standards identical with California=s, as required by the Clean Air Act. Modifications are
designed to improve the flexibility of manufacturers to introduce advanced technology vehicles into
motor vehicle fleets.
4.C. The State should proceed to phase out the use of methyl tertiary butyl ether (MTBE) as an oxygenate
additive in motor gasoline as required by State law. At the same time, the State will seek Federal relief
from the oxygenate requirement. The State will begin supporting infrastructure development for an
indigenous and renewable-based substitute for MTBE in the event that relief is not provided. The State
should recommend strategies for building and supporting such an infrastructure and industry in New
York.
In January 2003, DEC filed a request for a waiver from the Clean Air Act requirement that
reformulated gasoline contain at least two percent oxygen. Subsequently, the federal government
requested additional information. The additional information was submitted to U.S. EPA in
December 2003, and U.S. EPA denied the waiver request in June 2005. The Energy Policy Act of
2005 will remove the oxygen requirement in 2006.
Methyl tertiary butyl ether (MTBE) was banned in New York effective January 1, 2004. Ag and
Markets, which is responsible for sampling and testing motor fuels for conformance with the ban,
has recognized that trace amounts of MTBE may be found in motor fuels for reasons outside the
control of the regulated parties and has stated that the presence of de minimus amounts of 0.5
percent or less by volume will not be subject to regulatory action.
3/22/2006
Progress to Date
DEC, the New York State Consumer Protection Board (CPB), and the Attorney General of the State
of New York (Attorney General), with assistance from NYSERDA and Ag and Markets, monitored
the effects of the MTBE phase out on the sale of gasoline to New York consumers. Various
worldwide conditions have caused volatility in the gasoline market, resulting in fluctuations in
supply and resulting price increases. While the New York and Connecticut MTBE bans contributed
to that volatility, no evidence suggests that the MTBE ban caused price spikes to consumers
different from price spikes observed elsewhere in the country.
4.D. The State should lead the nation in taking actions to reduce greenhouse gas emissions, stressing the
aggressive implementation of existing and development of new technologies and strategies that would
significantly reduce emissions. The State should build upon its successes to date in promoting energy
efficiency and renewable energy technologies and transportation strategies, that have helped New York
become the most energy-efficient state in the continental U.S., and a significant developer of renewable
energy, which already accounts for 15 percent to 18 percent of the State=s electricity generation and 10
percent of primary energy use.
In July 2003, nine northeastern and mid-Atlantic states initiated a collaborative effort to develop a
program to reduce carbon dioxide emissions from electricity generating facilities known as the
Regional Greenhouse Gas Initiative (RGGI). Connecticut, Delaware, Maine, Massachusetts, New
Hampshire, New Jersey, New York, Rhode Island, and Vermont fully participate in the RGGI effort
and Maryland, the District of Columbia, Pennsylvania, the Eastern Canadian Provinces, and New
Brunswick are observers in the process. DEC, DPS, NYSERDA, and representatives of the other
participating states created a Staff Working Group (SWG) to analyze the possible impacts of a
various program features. The SWG developed a proposal which includes the implementation of a
multi-state cap-and-trade program with a market-based emissions trading system. The proposal
would stabilize electricity sector emissions from 2009 to 2015, followed by a ten percent reduction
between 2015 and 2019. The relevant agency leaders from all of the participating states reviewed
and discussed this proposal. On December 20, 2005, seven of the nine states that participated in the
initiative signed a supporting Memorandum of Understanding. Only Massachusetts and Rhode
Island declined to sign the MOU.
In his 2003 State of the State address, Governor Pataki stated that New York State is committed to
adopting California=s greenhouse gas standards for New York=s vehicle fleets.
On September 24, 2004, the California Air Resources Board approved regulations to reduce
emissions of GHGs from passenger cars by 37 percent in 2016. In November 2005, DEC’s
regulation to adopt the greenhouse gas regulations was approved by a unanimous vote of the State
Environmental Board.
The United States Department of Transportation Center for Climate Change and Environmental
Forecasting and DOT completed a study entitled Estimating Transportation-Related Greenhouse
Gas Emissions and Energy Use in New York State. The goals of the study were to: (1) evaluate the
transportation sector=s contribution to meeting the greenhouse gas and energy efficiency goals of the
State Energy Plan; (2) help metropolitan planning organizations (MPOs) and states integrate
transportation, energy, and air quality planning strategies; and (3) evaluate a number of strategies to
determine if they may provide emissions and energy reductions to help meet the goals identified in
the State Energy Plan. The study can be accessed at http://climate.volpe.dot.gov/papers.html.
3/22/2006
Progress to Date
In 2003, the NYPA AClean Commute Program,@ conducted in cooperation with Metropolitan Transit
Authority, NYSERDA, New York State Department of Transportation, LIPA, U.S. DOE, and
various municipalities, deployed 87 all-electric Ford TH!NK vehicles and charging stations at seven
commuter rail stations in the metropolitan New York region. NYPA also deployed 300 all-electric
GEMJ (Global Electric Motorcars, LLC) low-speed vehicles, donated by DaimlerChrysler, to state
and local government agencies, state universities and colleges, and nonprofit charities. In addition,
NYPA initiated a program with the municipal and rural electric cooperative systems of New York
State to help finance the purchase of electric-drive vehicles for their fleets.
NYSERDA has numerous projects under way to reduce energy consumption in the transportation
sector.
à 45 electrified berths for diesel tractor trailers were installed at two New York State Thruway
Travel Plazas in the Syracuse area. +
à 18 shorepower pedestals that provide electric power for overnight diesel tractor trailers were
installed at the Wilton Travel Plaza on the I-87 Adirondack Northway. +
à In 2004, an advanced energy management preheating system that considers both ambient
weather conditions and vehicle scheduling requirements was installed in Amsterdam, New
York. The system serves 60 school buses. +
à In 2004, projects in early stages of development included the manufacture and deployment of
10 Caterpillar MorElectricJ trucks, new truck stop electrification projects in the Rochester and
Newburgh areas, and the development of an automatic tire pressure sensing system for
commercial vehicles.
4.D.1. Commit to a statewide goal of reducing greenhouse gas (GHG) emissions 5 percent below 1990
levels by 2010, and 10 percent below 1990 levels by 2020.
In 2004, New York’s total CO2 emissions were 6.97% greater than in 1990. Also in 2004,
emissions were 0.46% lower than they would have been absent the implementation of the New
York Energy $martSM program and Executive Order 111.
The regional initiative described in 4.D. will result in reductions in carbon emissions from power
plants.
Based on Transportation Improvement Programs and Long-Range Transportation Plans currently in

place, the projected reductions in greenhouse gas emissions from the transportation sector are 117
thousand tons.
See 4.D.8. for activities in transportation.
4.D.2. Develop a GHG emission registry program for registering baseline GHG emissions and emission
reductions from actions implemented at facilities.
3/22/2006
Progress to Date
On October 6, 2003, the Northeast States for Coordinated Air Use Management (NESCAUM)
launched the Northeast Regional Greenhouse Gas Registry (RGGR) to create a GHG registry for
participating states. New York is actively engaged in the RGGR effort, as are the other NESCAUM
member states: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, and
New Jersey. Delaware is participating in the effort, while Pennsylvania and Maryland are
observing the process.
4.D.3. Emphasize the greenhouse gas emission reduction potential, most notably of carbon dioxide (CO2), as
a criterion in developing new program initiatives in the State=s public benefits programs.
CO2 emissions reductions from measures installed with assistance from NYSERDA=s New York
Energy $martK program were 1,187,000 tons per year through the third quarter of 2005.
See 4.D.
4.D.4. Expand the State=s efforts to improve the efficiency of electricity generation and encourage use of
indigenous and renewable energy resources, including solar, wind, waste methane, geothermal,
sustainable biomass, combined heat and power, clean and efficient distributed generation.
Through 2004, NYSERDA’s natural gas exploration and development program accomplished the
following:
à New York State's 2004 natural gas production hit an all-time high of nearly 48 Bcf due in large
part to the hyrdothermal dolomite reservoirs in the Trenton and Black River formations.
NYSERDA-supported projects helped exploration companies better understand the nature of
production from these reservoirs through a series of industry and academic research projects.
à NYSERDA has helped exploration companies better understand the nature of the Cambro-
Ordovician reservoirs located in western New York. In 2004, NYSERDA’s partner, Ardent
Resources, began a successful drilling program targeting Cambro-Ordovician reservoirs in Erie
and Cattaraugus counties. NYSERDA is working with Ardent and the New York State
Museum to better characterize these reservoirs and expand the geographic extent of the activity.
à NYSERDA continues to examine gas production potential in non-producing areas such as the
Tug Hill Plateau, the region west of Lake Champlain, and the northwestern counties of Niagara
and Orleans.
à NYSERDA has revived interest in shale gas production in New York through targeted research
and active technology transfer. NYSERDA has compiled and presented an extensive body of
shale research that is serving as the basis for a number of shale exploration efforts in the State.
Exploration interest in New York's shale resources is at an all-time high.
à NYSERDA helped characterize the current production from the shallow Trenton Formation as
sourced from the Utica Shale play rather than the fractured carbonates. This may change
industry's approach to these fields and fuel further interest in the Utica Shale in central and
eastern New York State.
3/22/2006
Progress to Date
à NYSERDA assisted in the drilling and recompletion of 20 gas test wells, of which 14 are
producers, in eight counties in New York. From 1999 to 2004, these 14 wells produced 548
million standard cubic feet of natural gas, with an estimated wholesale wellhead value of $2.2
million.
See 1.D., 3.A., 3.A.2., 3.A.4., 3.A.5., and 3.B.
4.D.5. Adopt a specific plan to develop an indigenous biofuels industry in New York to produce, refine, and
market transportation and other fuels from indigenous biomass resources.
See 3.A.4.
4.D.6. Develop a program that allows businesses to enter into voluntary agreements to meet certain energy
efficiency targets and reduce greenhouse gas emissions. To assist businesses in meeting such voluntary
agreements, the State should offer technical assistance, public recognition, expedited regulatory permit
review, and financial incentives, as appropriate or necessary.
New York Energy $martK programs and Corning Incorporated have partnered in 18 projects at
six different locations designed to increase the energy efficiency of Corning’s New York operations
and thus reduce its overall energy costs and environmental emissions.
Through various New York Energy $martK programs, NYSERDA provides cost-shared technical
assistance to businesses to reduce their operating costs. More than 3,000 studies and audits have
been provided through December 2005.
4.D.7. Redirect transportation funding toward energy-efficient transportation alternatives, including

public transportation, walking, and bicycling, and provide incentives to encourage greater use of related
alternatives that improve transportation efficiency.
The Governor’s proposed FY 2006-07 budget includes a substantially greater allocation of available
funds to support more energy efficient transportation alternatives for the State.
DOT has provided guidance on implementing this recommendation to Metropolitan Planning

Organizations and staff of its regional offices. This guidance is available to other transportation
agencies. The guidance is being implemented as Transportation Improvement Programs and Long-
range Transportation Plans are being adopted.
4.D.8. Include in the State transportation planning and State Environmental Quality Review Act (SEQRA)
related processes, consideration of CO2 production and mitigation strategies, as appropriate.
Consideration of CO2 production and mitigation is being quantified in transportation planning and
State Environmental Quality Review (SEQR) documents and is being considered as a key decision-
making criterion.
4.D.9. Target open space funding to prevent suburban sprawl, promote Quality Communities, reduce
vehicle miles traveled, and support, adopt, and enhance transportation measures that reduce
energy use and pollutant emissions.
See 4.D.10. for additional information on efforts to reduce vehicle miles traveled and adopt
transportation measures that reduce energy use and pollutant emissions.
3/22/2006
Progress to Date
See 1.E.
4.D.10. Support, adopt, and enhance transportation measures that reduce energy use and pollutant
emissions, such as Commuter Choice, Ozone Action Days, diesel vehicle retrofits, improved traffic
signal coordination with light emitting diode (LED) replacement technology, transportation system
management, and other similar actions.
In April 2005, DEC’s Inspection/Maintenance (I/M) Program implemented a statewide on-board
diagnostic (OBD II) testing program using stand-alone New York Vehicle Inspection Program
(NYVIP) equipment. Annual OBD inspections are now required for non-diesel, non-electric light-
duty vehicles for model years 1996 and newer. The New York Transient Emissions Short Test
(NYTEST) I/M program continues in the downstate nine-county New York City Metropolitan Area
for vehicles not inspected on the NYVIP equipment (i.e., model years 1981 through 1995 and
weighting more than 8,500 pounds).
As part of a coalition of State, city, federal, institutional, and environmental organizations,

NYSERDA and the New York City Department of Transportation will manage the New York
Harbor Private Ferry Emissions Reduction Program. Funded with $5 million from the Federal
Transit Administration and $1.8 from New York City Department of Transportation=s federal
Congestion Mitigation Air Quality funds, the program aims to cut pollution from over 40 diesel-
powered private vessels by identifying and implementing technologies that can reduce harmful
emissions up to 90 percent. Private ferries make more than 1,000 trips a day in New York Harbor.
Progress on this project is continuing, albeit slowly, since the aftermath of the 9/11 terrorist attacks
has presented new obstacles to the ferry owners and the City.
As part of a funded transportation program, transportation agencies in the downstate area have
included these activities as enhancements to existing programs and as new initiatives. A Commuter
Choice program has been developed that emphasizes the benefits of transit subsidies for commuters.
A regional branding effort for this program is being explored. The ongoing Ozone Action Day
program has been enhanced and expanded. The lower Hudson Valley has implemented a traffic
signal re-timing and optimization effort. Similar projects in the New York City and Long Island
areas are being evaluated. See 4.B.2. for information on diesel vehicle retrofits.
See 1.E.
4.D.11. Encourage low-cost, passive building efficiency measures, such as white roofs, passive solar design,
and improved foundation membranes, and incorporate such measures in the State=s building
construction codes. In addition, the State should support local building and development projects
that include funding for open space conservation and urban forestry and that reduce the need for air-
conditioning in urban Aheat islands.@
The State Energy Conservation Construction Code, maintained by the New York State Department
of State (DOS), is a performance-based code that allows multiple paths to demonstrate overall
energy performance. NYSERDA staff work closely with DOS to encourage code enhancements
which reflect the status of technology development and which continually raise the minimum
energy efficiency standards in New York. NYSERDA’s programs actively encourage new
technologies, such as passive solar, daylighting, cool roofs, and advanced lighting controls, helping
to demonstrate to the design and building communities that more aggressive energy efficiency
standards can be met.
3/22/2006
Progress to Date
NYSERDA and DEC have undertaken a joint pilot project to address the heat-island issue in high
density urban neighborhoods, primarily in the New York City metropolitan area, through urban
forestation. NYSERDA will issue solicitations for tree planting contractors. Planting is scheduled
to begin in spring 2006. Community organizations will be used to maintain the trees once planted.
As part of its demand management efforts, NYSERDA will also consult with the national labs to
obtain technical information on building technologies that may be used to mitigate heat islands.
These heat-island mitigation efforts may be linked to demand reductions on the electric grid.
DEC has developed an urban forestry grant program for municipalities and community groups. An
RFP was issued in August 2005, and grant awards will be made in January 2006 for tree planting in
the spring and fall of 2006. Approximately $500,000 is available for these urban forestry
initiatives.
NYSERDA is supporting development of an environmental learning center at a new 1.5 acre park at
Stuyvesant Cove on the East River in Manhattan. The park is being developed from a former
brownfield by the New York City Economic Development Corporation. The park is landscaped
with native plants and trees and houses a small, solar-powered education center. Plans are under
way for the design and construction of a permanent center using various renewable and energy-
efficient technologies on the site.
4.D.12. Expand research, development, and demonstration of energy and GHG-efficient vehicle technologies,
add GHG goals to vehicle tax credits and incentives, and coordinate with other states to encourage
improvements in vehicle fuel economy.
See 3.C. and 3.E.
4.D.13. Working with regional and local planning organizations, analyze and quantify the energy use and air
pollution emissions expected to result from transportation plans and programs.
Impacts of energy and air quality, including GHGs, are being routinely quantified by Metropolitan
Planning Organizations as part of the development and adoption of long-range plans and
Transportation Improvement Programs.
See 4.D.
4.D.14 Support the design and construction of energy-efficient and environmentally-friendly Agreen
buildings@ through financial incentives, technical assistance, and related program initiatives
In 2005, NYSERDA co-funded development of the Green Guide for Health Care Construction
which will improve the efficient use of energy and environmental performance of new construction
and retrofitted health care facilities including hospitals, nursing homes, clinics, medical office
buildings, and hospices nationally and internationally. The document will be adopted by U.S.
Green Building Council as part of the LEED™ rating system. At present, pilot projects are
underway in the nineteen U.S. states, including New York, and in four foreign countries. The web
site, www.gghc.org has registrants representing 65 countries.
3/22/2006
Progress to Date
Through the end of 2004, technical analyses in the New Construction Program indicate that the
energy efficiency of buildings can exceed the requirements of the New York State Energy Code by
an average of 25 percent using current technologies. In more advanced “green buildings,” peak
demand reductions averaged 40 percent with an increase of less than one percent in construction
costs. Energy savings in buildings participating in NYSERDA=s New Construction Program are
more than $27 million per year.
New legislation was passed in 2005 to extend the New York State Green Building Tax Credit
Program and add a second phase with another $25 million in credits. The New York Green
Building Tax Credit provides a state tax credit of 1.6 percent of the allowable costs for buildings in
economic development areas and 1.4 percent for buildings located outside of economic
development areas. Allowable costs for a base building are capped at $150 per square foot, and
allowable costs are capped at $85 per square foot for tenant space of buildings larger than 20,000
square feet . Phase two caps the maximum tax credit for an individual building at $2 million. The
tax credit is administered by DEC. Phase one of the tax credit became available in 2002 and Credit
Component Certificates were issued through December 31, 2004. Phase two begins in 2005 and
Credit Component Certificates can be issued through 2009. Credits are divided over a five-year
period. The last year of eligibility to receive credits for phase one is 2009, while phase two credits
can be received through 2116.
Phase one Green Building Tax Credits have been awarded for seven buildings for a total of $25
million. Regulations are being updated, and we expect to accept applications for phase two credits
in 2007.
Through 2005, NYSERDA=s ENERGY STAR7 Labeled Homes Program provided incentives to
nearly 400 new home builders to build more than 6,500 new homes which are approximately 30
percent more energy efficient than homes built to applicable building codes.
The Green Building Tax Credit has been awarded to five buildings for a total of $18.46 million.
$6.53 million remain available. DEC staff are currently reviewing two applications which, if
approved, would exhaust the remaining monies. Interest in the program remains high and potential
applicants are seeking to learn about plans to continue the program.
Through November 3, 2005, support for photovoltaic installations under the New York Energy
$martSM program includes 539 installations with 3,881 kW of capacity. Installations include two-
kilowatt systems at 50 schools in New York that are linked by a common data acquisition system
with performance available to anyone over the internet. Also included are installations at homes
and businesses across the state and innovative building integrated installations such as the White
Hall Ferry Terminal in New York City and the Solaire Building in Battery Park City.
Policy Objective 5. Ensuring fairness, equity, and consumer protections in an increasingly competitive
market economy.
5.A. The State will examine the feasibility of effectively aligning public policy interests in energy
efficiency, combined heat and power, and indigenous and renewable-based electricity generation with
the financial interests of distribution utilities and their customers.
3/22/2006
Progress to Date
On May 2, 2003, the PSC instituted a proceeding to identify the extent to which New York=s
electricity delivery utility rate structures produce financial disincentives to the promotion of energy
efficiency, renewable technologies, and distributed generation and to develop recommendations for
necessary rate design changes to eliminate the disincentives. On July 9, 2004, Staff of the DPS
issued a Staff Report summarizing comments received in this proceeding and presenting its
recommendations for a final round of comments by the parties. DPS Staff recommended that a
revenue decoupling mechanism not be required at this time. Comments on the report were
submitted on July 29, 2004 for the PSC=s consideration.
5.B. The State supports expediting efforts to have electricity distribution and customer service prices to
consumers reflect the true cost of service and eliminate inter-class and intra-class subsidies, to the
extent practicable.
The PSC continues to work toward revised rate designs that provide customers accurate price
signals.
In July 2000, the PSC instituted a proceeding to examine the then current practice of setting
separate delivery rates for New York City and Westchester County. On November 25, 2003, the
PSC voted to approve a rate adjustment that established a uniform system-wide delivery rate for
electric customers of Con Edison.
The first phase of the rate adjustment went into effect in May 2004 and will be phased in over three
ears and is expected to result in a rate reduction of 2.6 percent per year for Westchester County full-
service customers and an increase of approximately 0.4 percent per year for customers in New York
City. Annual bill impacts are expected to reflect actual market conditions.
The Public Service Commission adopted new Standby Rates for Niagara Mohawk in 2002 and
ordered such rates for the other utilities in 2003 (subsequently approved in 2004) to assist in
providing proper rate signals to customers.
See 2.D.2. for actions related to real time pricing efforts that help send proper price signals to
customers
5.C. The State should review the recommendations from the Department of Environmental Conservation=s
Environmental Justice Advisory Group and implement appropriate recommendations in a timely
manner.
DEC released its final environmental justice policy on March 19, 2003. Pursuant to the new policy,
DEC has implemented procedures to address environmental justice in DEC=s permit review process.
Also, pursuant to the new policy, DEC has implemented various directives related to environmental
justice, including enhanced availability of information to the public, use of geographic information
systems to identify potential environmental justice areas, enhanced public outreach and
participation, staff training, translation of documents for non-English speakers, a technical
assistance grant program, and two work groups to develop and incorporate critical environmental
justice information into DEC=s permit review process. These two work groups have completed their
work and the resulting reports will be made available for review and comment by the public in early
2005. One work group addressed disproportionate adverse environmental impacts while the other
addressed health outcome data.
3/22/2006
Progress to Date
5.D. The State encourages agencies to consider the effectiveness, efficiency, and coordination of their
low-income energy assistance programs, including the New York Energy $martK program, the
Weatherization Assistance Program, the Low-Income Home Energy Assistance Program, and other
State programs that offer incentives, assistance, and information services to improve the efficiency of
energy use and reduce the energy burden of low-income households. The State should consider
consolidating programs where opportunities exist to improve administrative efficiency and customer
service.
By an order issued and effective on May 30, 2003, the PSC established conditions for the
continuation and transfer of low-income programs and for establishing system benefits charge
funding. Under this order, DPS staff and New York utilities were directed to work with NYSERDA
to develop a new coordinated low-income energy efficiency and weatherization program. A PSC
order of May 26, 2004 approved a plan submitted by NYSERDA in February 2004. A new
program, EmPower New YorkSM, was launched on July 1, 2004. Under the program, NYSEG and
Niagara Mohawk will refer customers who are receiving ratepayer-funded payment assistance to
NYSERDA for energy efficiency and home performance services. Through October 2005, nearly
3,000 households have received efficiency services at an average cost per unit of $833 and an
average annual cost savings of more than $240 per unit.
In implementing its Assisted Multifamily Program, NYSERDA has coordinated funding and
program decisions with the New York State Division of Housing and Community Renewal (DHCR)
to facilitate upgrading of numerous low-income dwellings. By closely interacting with the United
States Department of Housing and Urban Development, the New York City Division of Housing
Preservation and Development, and DHCR, NYSERDA is able to leverage, on average, $3 for
every $1 of SBC funding.
LIPA and NYSERDA are co-funding a demonstration pilot as part of the Assisted Home
Performance with ENERGY STAR7 program for low-income LIPA customers. LIPA and
NYSERDA launched the New York ENERGY STAR® Labeled Homes program on Long Island in
mid-2004 and the Home Performance with ENERGY STAR® program in late 2005.
NYSERDA is collaborating with the New York State Office of Temporary and Disability
Assistance (OTDA), which is responsible for administering the Home Energy Assistance Program
(HEAP), on a low-income fuel-buying pilot program in five counties during 2004 and 2005. This
initiative is designed to significantly increase the buying power of available New York State HEAP
funds by working with the network of fuel vendors. Based on its early successes, , OTDA, in the
2005-2006 heating season, committed to a statewide implementation of the oil-buying effort
beginning with 20 counties
The NYSERDA-funded Low Income Forum on Energy (LIFE) Steering Committee is actively
working in the low-income area. LIFE brings together representatives of utility companies, energy
services companies, community-based organizations, State and local governments, and other
stakeholders to coordinate the design and delivery of low-income programs. HEAP, the
Weatherization Assistance Program (WAP), and utility-run programs are included in the
coordinated effort. A statewide conference is scheduled for May 2006 in Albany.
3/22/2006
Progress to Date
NYSERDA is implementing a low-income program as part of the Con Edison Indian Point 2
Settlement. The program targets customers at or below 60 percent of state median income (SMI)
and provides incremental electric efficiency services by expanding two existing NYSERDA
programs, the Weatherization Network Initiative and Assisted Multifamily (AMP) programs in New
York City and Westchester County. The budget is $2.5 million and the goal is to serve 1,512
households.
NYSERDA is implementing the National Grid Gas Efficiency Program. This program provides
incremental gas efficiency services to National Grid customers by expanding two existing
NYSERDA programs, Empower New York and Assisted Home Performance with Energy Star.
The goal to serve 1,600 households over two-years. The budget is $5 million.
NYSERDA is implementing a gas energy efficiency program as part of the Con Edison Gas Rate
Plan. Approximately $4 million is available for energy efficiency services. Fifty percent of the
funding is dedicated to the low-income sector.
3/22/2006

sep-annual-report

Uploaded by

Copyright:

Available Formats

sep-annual-report

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

sep-annual-report

Uploaded by

Copyright:

Available Formats

MEMORANDUM

FROM: Energy Coordinating Working Group1

petroleum infrastructures caused by Table 1: Energy Policy Objectives

Highlights of these efforts are

Figure 2: Primary Consumption per Dollar of Gross State Product/Gross Domestic

Figure 3: Primary Consumption per Capita

2003 160,480 158,013 -1.54%

2004 162,844 160,211 -1.62%

2005 165,280 167,225 +1.12%

Table 3: SEP Peak Forecast vs. Actual Peak

2003 30,984 30,333 -1.82%

2004 31,340 28,433 -9.28%

2005 31,907 32,027 +0.53%

Table 4: Forecast Comparison of New York’s Annual Electricity and Peak

NYISO 2005 2002 State NYISO 2005 2002 State

MAJOR ENERGY SUPPLIER FILINGS

In 2005, total gas construction budgets were as follows:

 Under Article VII, in 2005:

à 4 miles of 138 kV underground transmission were completed by Con Edison in Westchester

 See 3.A.1.a., 3.A.2., 3.A.4, 3.A.5., and 3.B.

 The NYISO implemented its SMD early in 2005.

 Beginning in fall 2004, NYSERDA implemented a first-of-its-kind pilot program in Westchester

 Agencies constructing transportation facilities in lower Manhattan have collaborated on an

 Through its alternative-fuel vehicle deployment programs, NYSERDA is supporting introduction of

 See 1.B., 1.D., and 3.B.1.

 See I.D. and 3.A.3.

Policy Objective 4. Promoting and achieving a cleaner and healthier environment.

 See 3.A.2., 3.A.5., and 3.B.

 Based on Transportation Improvement Programs and Long-Range Transportation Plans currently in

 See 4.D.8. for activities in transportation.

 See 1.D., 3.A., 3.A.2., 3.A.4., 3.A.5., and 3.B.

4.D.7. Redirect transportation funding toward energy-efficient transportation alternatives, including

 DOT has provided guidance on implementing this recommendation to Metropolitan Planning

 As part of a coalition of State, city, federal, institutional, and environmental organizations,

You might also like

Under Article VII, in 2005:

See 3.A.1.a., 3.A.2., 3.A.4, 3.A.5., and 3.B.

The NYISO implemented its SMD early in 2005.

Beginning in fall 2004, NYSERDA implemented a first-of-its-kind pilot program in Westchester

Agencies constructing transportation facilities in lower Manhattan have collaborated on an

Through its alternative-fuel vehicle deployment programs, NYSERDA is supporting introduction of

See 1.B., 1.D., and 3.B.1.

See I.D. and 3.A.3.

See 3.A.2., 3.A.5., and 3.B.

Based on Transportation Improvement Programs and Long-Range Transportation Plans currently in

See 4.D.8. for activities in transportation.

See 1.D., 3.A., 3.A.2., 3.A.4., 3.A.5., and 3.B.

DOT has provided guidance on implementing this recommendation to Metropolitan Planning

As part of a coalition of State, city, federal, institutional, and environmental organizations,