The New York Independent System Operator (NYISO) last Wednesday called for the immediate approval of 3,000 MW of new generating capacity to avoid serious electricity shortages, improve air quality, facilitate New York’s economic growth, and avert strong upward pressure on prices. The report says that Long Island alone needs between 750 and 1,000 MWs approved as soon as possible to reduce severe reliability risks and high prices.

The report follows on recent comments from KeySpan Energy and the Long Island Power Authority warning of possible problems on Long Island as early as this summer.

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

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

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

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