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how con edison is addressing new york’s energy and environmental issues

Investing to Meet New York’s Energy Needs

Reliable energy provides the fuel for economic growth. However, that growth, in turn, requires a greater investment in the energy-delivery infrastructure. The energy-delivery infrastructure is more than just cables, transformers, ducts, and substations. It is the essential platform for New York’s economic vitality and growth, and it must be reliable. New York’s skyscrapers, hospitals, schools, financial markets, tourist attractions, and cultural centers all depend on reliable energy.

While energy efficiency and energy conservation will play key roles in reducing New York’s energy demand, these efforts alone will not be sufficient to address New York’s energy needs. Accordingly, Con Edison must continue to make substantial investments in New York’s energy-delivery infrastructure.

Con Edison is taking steps to make sure we will be able to meet rising energy demands in the most reliable, efficient, and environmentally responsible manner possible. The company will invest approximately $8 billion in its energy-delivery system over the next several years to meet the area’s growing power needs.

As energy usage grows, one of the major energy investments needed is for new substations. While necessary for reliable energy delivery, substations are expensive. Real estate is scarce and expensive; prices for substation property have surpassed $25 million for a 40,000-square-foot plot. Construction of a typical power-distribution substation can be $100 million; a transmission switching station can be double that cost.

The company will make additional investments in the transmission system that brings power from distant generation sources to the local area of use. During 2007, Con Edison received several important approvals for a new 9.5-mile-long high-voltage transmission line from Westchester to Upper Manhattan that will make 300 MW of power available to New York City. The company expects to complete the $300 million line in 2010. The line will improve system reliability and allow increased delivery of lower-cost power to our customers.

The local electricity distribution infrastructure will receive significant additions and upgrades. Con Edison plans to replace miles of primary distribution and secondary cable, replace thousands of network transformers, and replace circuit breakers throughout its service area.

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