The ConEd power plant on East 74th Street between East End Avenue and the FDR Drive. Photo by Patricia Voulgaris.

By Megan Bungeroth
Officials from Con Edison are paving the way to convert both of their Manhattan steam generating plants into natural gas-fueled facilities. Last week, representatives from the energy company came to Community Board 8 to explain how the conversion would work at their Upper East Side plant on East 74th Street and York Avenue.
“This will give Con Edison the ability to burn gas and support the city’s goal to expand the use of natural gas and reduce the use of No. 4 and No. 6 fuel oil,” said Jim Shannon, who works for Con Ed and presented the information to the board.
The plant currently produces steam by combusting oil in boilers, which causes air pollution in the form of nitrogen oxides, sulfur dioxides, particulate matter and other harmful elements. The Upper East Side has some of the worst air quality in the city due to the high number of older buildings that burn dirty fuel oil—Con Edison said that eliminating the steam plant, a source of this pollution, will significantly improve the neighborhood’s air quality.
“We’re going to reduce the emissions coming from that stack,” said plant manager Gary Hugo, referring to the large tower that emits dark smoke when the plant is burning oil.
Shannon said that after the plant is converted, there will be a 50 percent reduction in noxious pollutants emitted, the equivalent of removing 16,000 cars from the streets, as well as a 10 percent reduction in carbon dioxide emissions.
The plant generates about 2 million steam pounds per hour (that’s 26.2 billion pounds annually), Con Edison said, and services about 1,735 customers in Manhattan. Steam is used to power both heating and cooling systems and is a very clean energy source at its point of use.
The project will cost about $83 million, but officials say it will ultimately save many millions of dollars, which will be passed onto steam customers. Aside from its cost efficiency, Hugo said that a big reason Con Edison is moving ahead with the conversion is to meet regulations from the New York State Department of Environmental Conservation.
Some board members questioned how disruptive the work will be, especially for a neighborhood already besieged by Second Avenue Subway construction. Shannon said that Con Edison is hoping for permits that allow them to work weekdays after 8 a.m., but the DOT has the final say on permitted times.
The second phase of construction will be mostly inside the plant and is slated for completion in December 2013.

By Aline Reynolds

When New Yorkers think of energy, they generally think Con Edison. But there are actually more energy suppliers to choose from than there are cable, Internet and cell phone providers—combined. The trick is making sense of the promotions that arrive via mail and figuring out which one works best for any one household.

Energy choice stems from the state Public Service Commission’s 1996 deregulation of the energy sector. This allowed third-party suppliers, known as energy service companies, or ESCOs, to sell electricity and natural gas to commercial and residential consumers. Previously, state-regulated utilities like Con Edison had the corner on the energy market, acting as both the owners and distributors of energy supply for a specific geographic territory.

Much of the wind power purchased by local energy users through ConEdison Solutions originates on wind farms upstate in Madison County.

“It used to be a one-size-fits-all system,” said Lisa Dornan, director of public relations at Direct Energy, an energy company that entered the New York market in 2006. “Now, people have choice. They can find something that best fits their household needs.”

Proponents say the free-market system fosters competition and choice, allowing consumers to pick a plan that supports green energy, or has stable monthly bills. And though energy providers are largely deregulated, federal and state governments still shield consumers from unfair rates.

“The government’s concern is how to protect consumers from wild price fluctuations in an unregulated industry,” such as the reshuffling of rates that followed the breakup of AT&T in the 1980s, said John Holtz, director of Green Mountain Energy’s Eastern U.S. markets.

Green Mountain Energy recently entered the New York City residential market, offering various combinations of renewable wind and water energy, from both state and national sources. It is one of about 50 different energy service providers for electricity or natural gas, with Con Edison serving as the mediator. Currently, nearly 20 percent—or 1.1 million New York City residents—now purchase their energy supply from these types of providers. People who select a different energy provider still receive one monthly statement. Con Edison continues to deliver the energy to city consumers and still handles all billing.

Though Con Edison still competes with these energy providers on a retail level, the utility is mandated by the Public Service Commission to let customers know about the various options, assuring them that service will not be interrupted if they switch to another energy provider. Since 1998, Con Edison has offered New York City residents who switch to another energy provider a 7 percent reduction in their natural gas and electricity bill for the first two months of their new service with the provider.

Ambit Energy, another natural gas and electricity supplier, sets its price after Con Edison publishes its own price, apparently making up for low rates with volume (although a spokesperson could not confirm this business strategy). Ambit says that its customers typically save an average of 3 to 5 percent on natural gas and electricity bills compared with Con Edison utility customers.

Ambit also has a loyalty program, enabling households to earn travel points every month toward a partially subsidized vacation. Travel packages range from a five-day discount Carnival cruise to the Bahamas to a three-night stay at a Ritz Carlton.

Ambit, like several other energy companies, is “Green-e Certified,” meaning that a part of the money received from billing funds renewable energy sources elsewhere in the state or country. That may appeal to more eco-minded customers.

“People are becoming aware that this is one easy way that they can make a difference,” said Christopher Chambless, Ambit’s co-founder and CFO.

Another Green-e Certified company is ConEdison Solutions, a sister company of Con Edison. The company puts funds toward locally generated wind power, which “has the added benefit of affecting the immediate region,” said Lauren Kenny, director of ConEdison Solutions’ electric supply in New York.

ConEdison Solutions also advertises a fixed, one-year plan, offering residential customers budget certainty and allowing them to switch back to Con Ed utility during the 12-month contract without a cancellation fee. For those who don’t mind fluctuating monthly bills, ConEd Solution offers a second option: a variable rate that the company determines on a monthly basis, depending on consumers’ usage and the wholesale market price of electricity. The company’s monthly wind power, a third option, costs “the equivalent of a single cup of designer coffee more than our standard power,” Kenny said.

Direct Energy also markets fixed monthly energy rates—a sign, it says, of the company’s financial stability. Owning natural gas and power generation assets and pre-purchasing energy allows the company to manage volatile electricity and natural gas prices.

“Some companies have priced more aggressively than they were financially able to follow through on,” said Chris Kallaher, Direct Energy’s director of government and regulatory affairs. “Our customers can rest assured that we’re actually going to be there to back up our commitment.”

For more information on the various energy providers available in New York City, visit PowerYourWay.com.

Walking throughout Manhattan’s busy shopping strips, Eric Goldstein, director of Natural Resources Defense Council’s New York Urban program, found that 25 percent of the 400 stores he personally surveyed in Manhattan left doors open with the air conditioning running.

Last year, the Council passed a law authored by Gale Brewer to target stores larger than 4,000 square feet that were wasting energy by cooling the sidewalk.

(Goldstein’s survey included stores that were less than 4,000 square feet.)

In the unscientific survey, the Broadway between West 86th and 96th streets had some of the borough’s most energy-conscious businesses. Only 16 stores out of 99 had doors open with the air conditioning operating.