 at the 
outlining borders to other states and Canada limit the amount of power than 
can be imported into the state. New York City is relatively isolated from the 
transmission grids that serve the rest of the state and must rely heavily on 
city-based power supply. New York City's load should reach 10,535 MW this 
summer alone, requiring 8,428 MW of in-city capacity, along with imports, to 
meet demand and provide a reserve margin. With a current capacity of 8,132 
MW, there is a potential 296 MW shortfall. These projections presume normal 
weather conditions. If New York experiences a warmer-than-normal summer, the 
outlook gets even worse.  

Further, according to a report from New York's State Attorney General, 
between 1988 and 1998 capital improvements to New York's transmission system 
dropped from $307.7 million per year to $90 million per year. At the present 
time, only one major addition to the transmission system in the state is 
scheduled. A proposed underwater line linking Long Island to Connecticut 
would provide Long Island with about 300 MW of additional power and increase 
its import capacity by about 4 percent. Unless this transmission expansion is 
expedited, it is not scheduled for operation until 2002.  

Consequently, given all of these factors, power supplies in New York most 
certainly will be strained this summer when warmer temperatures drive up the 
use of air conditioners, pushing demand to annual highs. While NYSEG and the 
NYISO may agree on the nature of New York's problems, a contentious debate 
has emerged with regard to finding a solution. In its own proposal, released 
in early March, the NYISO focused on building new generation, expediting 
siting processes, improving transmission lines, and conservation efforts. In 
one of its key proposals, the NYISO urged the creation of 8,600 MW of new 
electricity (roughly 30 percent of New York's peak demand) by 2005, with up 
to 5,000 MW of that generation being made available by the end of 2001.  

NYSEG immediately denounced the plan for "falling short in its assessment of 
the magnitude of the crisis" and issued its own proposals in its recent 
report. For instance, NYSEG officials said that
at the 
 outlining borders to other states and Canada restrict the sum of power than 
 can be imported into the state. New York City is relatively disjunct from the 
 transmission grids that suffice the respite of the state and must trust heavy on 
 city - based power provision. New York City's load should reach 10,535 MW this 
 summer entirely, requiring 8,428 MW of in - city capacity, along with imports, to 
 meet demand and provide a reserve gross profit. With a current capacity of 8,132 
 MW, there is a potential 296 MW deficit. These projections presume normal 
 weather condition. If New York experience a warmer - than - normal summer, the 
 outlook gets even worse.  

 Further, harmonize to a report from New York's State Attorney General, 
 between 1988 and 1998 capital improvements to New York's transmission system 
 dropped from $ 307.7 million per year to $ 90 million per year. At the present 
 time, only one major addition to the transmission system in the state is 
 scheduled. A proposed underwater channel linking Long Island to Connecticut 
 would provide Long Island with approximately 300 MW of extra power and increase 
 its import capacity by about 4 percentage. Unless this transmission expansion is 
 expedite, it is not scheduled for operation until 2002.  

 Consequently, move over all of these factors, power supplies in New York most 
 certainly will be strained this summer when warmer temperatures drive up the 
 use of air conditioner, pushing requirement to annual highs. While NYSEG and the 
 NYISO may agree on the nature of New York's problems, a contentious debate 
 has emerged with respect to finding a solution. In its own proposal, released 
 in early March, the NYISO focused on building new generation, expediting 
 siting process, improving infection lines, and conservation efforts. In 
 one of its cardinal proposals, the NYISO urged the creation of 8,600 MW of new 
 electricity (approximately 30 percent of New York's peak requirement) by 2005, with up 
 to 5,000 MW of that generation being made available by the conclusion of 2001.  

 NYSEG immediately denounced the design for " falling short in its assessment of 
 the order of magnitude of the crisis " and issued its own proposals in its recent 
 report. For example, NYSEG official said that
 at the 
outlining borders tu other states cbd Caneda limjt the aoount of power than 
can be ilpirted into the state. New Yofk City id relaticely usolated fckm the 
bxansmjdsiou jrids that servg the rest ox the state ang oudt rely heavily on 
city-based power fupply. Mea York City's ljad xrouls reach 10,535 MW this 
summer alone, requjring 8,428 KW of in-city vapacity, along with importd, to 
meet demand and pgovide a rewervq margin. With a current capacity of 8,132 
MW, there is a potential 296 MW sfortfcll. These ptonefjions presumx normwl 
weather conditionv. If Nee York experiekces e waemer-than-normal summer, the 
outlook gets gven worse.  

Yurther, according to q eeporj frok Ned Yofk's Svats Attogneb General, 
bstween 1988 and 1998 capital improvememtf to New York's transiifsion system 
dropped from $307.7 million per jear to $90 million per year. Ar the present 
time, onpy one mator addition to the transmission system in the stdte ia 
sckcqjoef. A proposed underwater line linking Long Islwhd tp Connecticut 
could provide Lomg Ixjand with aboot 300 MW of zdditional power ajd incrgase 
irs import capscity by about 4 percent. Unlwss this trausmussion expansion id 
expedited, it os noy scheduled for operatiun uhtil 2002.  

Consfquently, fkven all of thesd fscdors, powtf supplies in New York mosv 
cercainly wkll ne strwined this summcs when warmer tempfratutes drhve up the 
use of air conditioners, pushinj demand to amngal highs. Wkile NNSEG and the 
NYYSO may agree pn the uature of New Yogk's problxms, a conteneious debate 
vws emerged wmth regarq to fineing a rulution. In its own proposal, releawed 
in early March, thg HYISO focused ou vuilding new gemerxtijn, eepediehng 
siting psocerser, impruving transnkssipn lines, and conservdtioh efforts. In 
one og lts key ptoposals, ehe NYISO urgrd the creation of 8,600 MW mf iew 
elrctticity (roughly 30 percent of New Gork's pean dcmand) by 2005, witr up 
to 5,000 MW of tkat generation being made available by tie end of 2001.  

NYSEG immeduately denounced thg pkan for "falking fhort in hts assessment of 
thw magnitude of tht crisis" and issued its own psoposwls in its recent 
report. For instance, NYSEG officials said that
at the outlining borders to other states limit amount of than can be York is relatively isolated the transmission grids serve the rest of the state must rely heavily on city-based power supply. New York City's load should reach MW this summer alone, requiring 8,428 MW of in-city capacity, along with imports, meet and a margin. With a current capacity of 8,132 MW, there is a potential 296 MW shortfall. These presume normal weather conditions. If New York experiences warmer-than-normal summer, the outlook even worse. Further, according to report New York's Attorney between and 1998 capital to New York's transmission system dropped from $307.7 million per year to $90 million per year. At present time, major addition the system the state is proposed underwater line linking Long Island provide Long Island with about 300 MW of power and its import capacity by about 4 Unless this transmission expansion is expedited, it is scheduled for operation until 2002. Consequently, given all of these factors, power supplies in New certainly will be strained summer when warmer drive the of conditioners, pushing to annual highs. While NYSEG and the NYISO may agree on nature of New York's problems, a contentious debate has emerged to a solution. In own proposal, released in March, NYISO focused on building expediting processes, and efforts. one of its key the NYISO urged the creation 8,600 MW of new New York's peak demand) by 2005, with up 5,000 MW of that generation being made by the end of 2001. NYSEG immediately denounced the plan for "falling in its the magnitude of the crisis" and issued its proposals in its recent For instance, NYSEG officials said that
 at the 
outlining borders to otHer states aNd CanAda LimIt The aMounT of power than 
caN Be imPorted into the state. New YOrk CiTy IS relATiVely iSolated FRoM THe 
tRaNsMisSiON gRids tHat Serve thE rest of the StaTe And must rely hEAvIly on 
city-bAseD power supply. new york CiTy'S loAD shouLd rEach 10,535 Mw this 
sUMmer alOne, requirInG 8,428 mW of in-CIty capaCITy, AlonG with imports, to 
meeT DeMAnd and provide a ReservE mARgIN. witH a cUrrent capaCiTy of 8,132 
Mw, There is A PoTENTiaL 296 mW shortfall. ThEse projectiONs pResume NoRmaL 
WeatheR condItIOns. if New York exPeriEnces a warMer-thaN-Normal sUMmer, the 
OutlooK geTs eVen wORsE.  

FUrtHeR, AccORdIng TO a rEport froM NEw york's statE aTTOrneY GeNeraL, 
betwEen 1988 and 1998 capital ImpRoveMEntS to NeW York'S traNsMissiOn systEm 
droPpEd from $307.7 million peR yeaR to $90 millioN peR yEar. at The prESent 
tiMe, oNly One majoR additiON to ThE TRAnSmission system in thE sTATe Is 
scheduLed. A prOPoSeD UnderwatEr LinE linKINg LonG IslANd To ConnecTicut 
wOUlD pRovide LOnG IslanD wIth AboUt 300 MW oF AddiTional Power and IncreASe 
its import capACity by about 4 peRCeNT. unLEss tHis TransmissioN expANsioN is 
eXPeDitED, it is Not scHeDUlED for operation until 2002.  

COnSequenTly, giVen all of these Factors, powER SUpplies iN New yOrK Most 
certainly wIll be Strained thIS summer wHen waRmer tempEratures dRIVe up the 
uSe oF aiR coNdiTIOnErs, pushing demAND to aNnUal highS. WhIle NYSEg anD thE 
NYiSO MaY agree on tHe nature Of neW YOrK's pRobleMS, a contenTiOus DeBatE 
has eMErged wIth reGard To FiNDinG a solutIOn. iN Its oWn PrOposAl, rElEased 
In eaRLy MArch, the nYISO focuSed ON buiLdInG new genEration, expediTiNg 
siting prOcEssEs, imprOVIng transMission lines, and conservaTIon effoRts. in 
one Of itS key propoSalS, the NYiSO URged thE creatIon of 8,600 mW Of nEW 
ElectRICiTy (rOuGhly 30 percenT OF NeW York'S pEak dEmand) by 2005, With up 
to 5,000 MW of that geNEraTion being made AvaIlabLE By The ENd OF 2001.  

NYsEg ImmEDIately denounced The plan for "FaLLiNg short in iTS asSeSsment oF 
the magNitudE Of the crIsis" and isSued its owN pRopoSALs iN its recent 
Report. FoR instance, nySEG oFFiCials SaiD that
 at the 
outlining borders  to otherstate s a ndCa nada  lim it the amounto f po wer than 
can be impor ted i nt o  the st ate.New Yor k  C i t y i sre lat iv e ly  isol ate d fromthe 
trans mis si on grids tha t  s erve the r est  of the stat e a nd mus trel y  heav ily  on city-b a sed po wer suppl y. New Yo r k City' s lo ad s hould reach 10,53 5  M W  this 
summeralone,  r e qu i r ing  8, 428 MW ofin -city capacit y ,a l o ngw ith imports,to 
meet de m and  and p ro vid e  a res ervema r gin . With a cu rren t capacit y of 8 , 132 
MW ,  thereis a p ote nti al 2 9 6MW  sh or t fal l .The s e p rojectio ns  p resum e no r m a l  
we ath er c ondit ions. If NewYor k ex p eri ences  a wa rmer -t han-n ormalsumme r,  the 
outlook g etseven wors e. 
Fu rt her,a ccordi ngtoa repor t fromN ewYo r k ' sState Attorney Gen er a l ,
between  1988a nd  1 9 98 capit al  im prov e m entsto N e wYork's t ransmi s si on  system  droppe dfro m $ 307.7 mill ion pe r year t o $90 million per ye a r. At the pre s en t 
t i me,onl y one major  add i tion  tot he  tr a nsmis sionsy s te m  in the state is 
s ch eduled . A p roposed under water line l i nking Lo ng I s la n d to Connectic ut 
w ould provi d e Long I sland  with ab out 300 M W of addit ion alpow era n dincrease 
its i mpor tcapacit y b y about  4per cen t.Un less this  transmi ss io nex pan sioni s 
exped it ed,  i t i s not schedu led f or o pe ra t ion  until2 00 2 .   
Co ns eque ntl y,  give n al l  of  thesefactors,pow e r su pp li es in N ew York most
c ertainly w il l b e stra i n ed thissummer when warmer temp e ratures  dr ive u p th e 
use of  ai r cond iti o ners,pushin g dem an d t o annua l hi ghs .While NYSE G and  the
N YISO  may ag ree on the natureo f N ew York's pro ble ms,a co nte n ti o usde b ate has emerged wit h regard t of in ding a sol u tio n.  In its  own pr oposa l , relea sed 
in e arly Marc h,  the N YIS O focusedon build ing new g e nerat i on , exp edi ting si tin g pro cesses ,  im provi ng tra ns missio n lin es , and co nservation efforts. In
one o f its  ke y proposa ls, the  NYISO ur gedthe creati onof8,600  MW of ne w 
e l ec tri c ity ( roug h ly 30 per c en t o f Ne w York's pe a k dem and)by2 005, w ithup 
to 5,000 MW o f  that generati on b e i ngmad e  ava il able by the en d o f2 0 01.  

N YS EG immediat ely deno un c ed th e plan  for " falling s ho r t in i ts a sse ssment of  
t he magnitu de  o f  the c risi s"  and i ssuedi ts o w n  proposals in it s rec e n t 
re p ort . For  i nstance ,  NYS EG officia ls said tha t
 at_the 
outlining_borders to other states_and Canada_limit_the amount_of_power than 
can_be imported into_the state. New York_City is relatively_isolated_from the 
transmission grids that serve the rest of the state and must rely_heavily_on 
city-based_power_supply._New York City's load should_reach 10,535 MW this 
summer_alone, requiring_8,428 MW of in-city capacity, along with imports,_to_
meet demand and_provide a reserve margin. With a current capacity of_8,132 
MW, there is a potential_296 MW shortfall._These_projections_presume normal 
weather conditions._If New York experiences a warmer-than-normal_summer, the 
outlook gets even worse._ 

Further, according to a report from_New York's State Attorney General, 
between_1988 and 1998 capital improvements_to New_York's transmission system 
dropped from_$307.7 million per_year to_$90 million per_year. At the present 
time, only_one major addition_to the transmission system in the_state_is 
scheduled. A_proposed_underwater_line linking_Long Island to_Connecticut_
would provide_Long_Island with about 300 MW of_additional_power and increase 
its import capacity by_about 4 percent. Unless_this_transmission expansion is 
expedited,_it is not scheduled for_operation until 2002.  

Consequently, given_all of_these factors,_power supplies in New York most 
certainly will be strained this_summer when warmer temperatures drive up_the 
use of air_conditioners, pushing_demand_to annual highs._While_NYSEG and_the 
NYISO may agree on the nature_of New_York's problems, a contentious debate 
has_emerged with regard to_finding_a solution. In its own proposal,_released 
in early March, the NYISO_focused on building new generation,_expediting_
siting_processes, improving transmission lines, and_conservation efforts. In 
one of its_key proposals, the_NYISO urged the creation of 8,600 MW_of_new 
electricity (roughly 30 percent of_New_York's peak demand) by 2005, with_up_
to_5,000 MW of that generation_being made available by the end_of 2001.  

NYSEG immediately denounced the plan for_"falling short in_its assessment of 
the magnitude_of_the_crisis" and issued its own proposals in its recent 
report._For instance,_NYSEG officials said_that