City Steam & Public Housing Projects: District Energy Recovery & Resilience

Image: Courtesy of Nelligan White Architects

1 Steam & Public Housing Projects: District Energy Recovery & Resilience Baruch Houses: Site location/profile

Buildings: - 18

Apartments: - 2,391

Residents: Public Housing - 5,340 owned and managed by New York City Housing Authority (NYCHA)

Source: GoogleSource: Earth Google Earth

2 New York City Steam & Public Housing Projects: District Energy Recovery & Resilience Baruch Houses: Site location/profile

location/profile Central Heating Plant (CHP)

Image: Courtesy of Nelligan White Architects

3 New York City Steam & Public Housing Projects: District Energy Recovery & Resilience Site flooding CHP Basement [3-4 ft for several days]

No Flooding 17 Moderate Flooding [~1 ft] 16 15 10 9 Severe Flooding [1-2 ft] 11 14 18 (Depth, Wave Action, Duration) 8 13 12 7 1 6 2 5 3

4

Image: Courtesy of Nelligan White Architects

New York City Steam & Public Housing Projects: District Energy Recovery & Resilience 4 SitePlant works Damage

Flood Line

FEED WAT BOILER BOILER BOILER 17 ER 14 #5 #6 #7 16 TANK 15 Steam 12” Steam 10” 13 Cond. 3” Cond. 3” 18 11 Steam 12” 10 12 Cond. 4”

7 CHP 8 9

6

L Steam 6” 5 Steam 14” Cond. 2” Cond. 4”

4 3 2 1

New York City Steam & Public Housing Projects: District Energy Recovery & Resilience 5 Replacement Schemes: New Boiler Plant

Image: Courtesy of Nelligan White Architects

New York City Steam & Public Housing Projects: District Energy Recovery & Resilience 6 Replacement Schemes: Con-Ed steam PRV Plant

East 13th St. Complex

Baruch Houses HP Transmission Line

New York City Steam & Public Housing Projects: District Energy Recovery & Resilience 7 Replacement Schemes: Con-Ed steam PRV Plant New Con-Ed branch to property line

Steam line to new PRV station

HP Transmission Line Existing PRV Station CHP

New York City Steam & Public Housing Projects: District Energy Recovery & Resilience 8 MakingReplacement the decision Schemes: Con-Ed steam PRV Plant

Image: Courtesy of Nelligan White Architects Image: Courtesy of Nelligan White Architects

Models: by Nelligan White Architects

New Boiler Plant OR New PRV Station - Natural Gas - City Steam

Image: Courtesy of Nelligan White Architects

New York City Steam & Public Housing Projects: District Energy Recovery & Resilience 9 Making the decision: Financial Evaluation New Boiler Plant New PRV Station - Natural Gas - City Steam ImplementationOperational Costs Costs - DemolitionEnergy costs costs $$$ $$$$$ - BuildingEquipment construction O&M costs costs $$$ $$$

Gas Boiler Plant Equipment Scheduled Replacement and Frequency - PlantStaffing and Costs equipment (re-deployments) $$$ Costs$$$ ($) Maintenance Events (years) - SiteWater pipework & Sewer connections charges $$$Boiler refractory and tube work + Breeching Cleaning / Repair $$-$100,000 5 Feedwater and other pump repairs -$20,000 6 - TemporaryFinancial Factors boilers $$$ Misc small equipment repair replacement $-$30,000 2 Technology upgrades, controls, software, equipment -$10,000 2 - (incl.(Discount enabling rate, works,inflation, site escalation prep, rental rates, etc.) project life etc.) Boiler Replacement -$1,914,850 25 Feed Water Tank Replacement -$104,500 30 Breeching Replacement -$416,920 25 Equipment Permits and Inspections -$10,000 7

Gas Boiler Plant Equipment Scheduled Replacement and Frequency PRV Plant Equipment Scheduled Replacement and Frequency Costs ($) Costs ($) Maintenance Events (years) Maintenance Events (years) Boiler refractory and tube work + Breeching Cleaning / Repair -$100,000 5 Annual recalibration of valves and controls -$3,000 1 Feedwater and other pump repairs -$20,000 6 Valve Diaphram & Stem Replacement -$7,000 2 Misc small equipment repair replacement -$30,000 2 Misc small equipment repair replacement -$4,000 2 Technology upgrades, controls, software, equipment -$10,000 2 Technology upgrades, controls, software, equipment -$10,000 5 Boiler Replacement -$1,914,850 25 Major Valve Body Replacement -$100,000 15 Feed Water Tank Replacement -$104,500 30 Pneumatics Scheduled Preventative Maintenance -$5,000 5 Breeching Replacement -$416,920 25 Pneumatics Replacement -$60,000 15 Equipment Permits and Inspections -$10,000 7 Equipment Permits and Inspections -$5,000 5

PRV Plant Equipment Scheduled Replacement and Frequency Short-term (truck) Costs ($) Long-term (to city code) Maintenance Events (years) New York CityAnnual Steam recalibration &of valves Public and controls Housing-$3,000 Projects:1 District Energy Recovery & Resilience 10 Valve Diaphram & Stem Replacement -$7,000 2 Misc small equipment repair replacement -$4,000 2 Technology upgrades, controls, software, equipment -$10,000 5 Major Valve Body Replacement -$100,000 15 Pneumatics Scheduled Preventative Maintenance -$5,000 5 Pneumatics Replacement -$60,000 15 Equipment Permits and Inspections -$5,000 5 Making the decision: Net Present Value (NPV) • Equipment Replacement costs & Frequency Year in project life Gas Boiler Plant Equipment Scheduled Replacement and Frequency Costs ($) Maintenance Events (years) • Plant Initial Capital Cost Boiler refractory and tube work + Breeching Cleaning / Repair -$100,000 5 Feedwater and other pump repairs -$20,000 6 Misc small equipment repair replacement -$30,000 2 Technology upgrades, controls, software, equipment -$10,000 2 • Fuel Annual Cost and Boiler Replacement -$1,914,850 25 Escalation Rates Feed Water Tank Replacement -$104,500 30 Breeching Replacement -$416,920 25 Equipment Permits and Inspections -$10,000 7 • Staff, HVAC O&M PRV Plant Equipment Scheduled Replacement and Frequency Costs ($) 3.0% Maintenance Events (years) 25 years Annual recalibration of valves and controls -$3,000 1 Valve Diaphram & Stem Replacement -$7,000 2 Misc small equipment repair replacement -$4,000 2 Technology upgrades, controls, software, equipment -$10,000 5 Major Valve Body Replacement -$100,000 15 Pneumatics Scheduled Preventative Maintenance -$5,000 5 Pneumatics Replacement -$60,000 15 Equipment Permits and Inspections -$5,000 5

New York City Steam & Public Housing Projects: District Energy Recovery & Resilience 11 Making the decision: Net Present Value (NPV)

PRVBoiler Plant: Plant: Lower Lower lifetime lifetime Costs Costs Sensitivity Analysis: Project Present Value $ x Project Life (years) million Costs after 25-Years Scenario AB 0 5 10 15 20 25 30 -$90$90 $0$0 -$80$80 -$10,000,000-$10 “Break-even” -$70$70 -$20,000,000-$20 after 13 years -$60$60 -$30,000,000-$30 NPV ($) -$50$50 NPV-$40,000,000-$40

-$40$40 -$50,000,000-$50 * -$60,000,000-$60 -$30$30

-$70,000,000-$70 -$20$20

-$80,000,000-$80 -$10$10

-$90,000,000-$90 $0$0 PRV NPV Boiler Plant NPV Boiler Plant PRV Plant NPV NPV

New York City Steam & Public Housing Projects: District Energy Recovery & Resilience 12 West Brookfield Property Group November 2016 Development Sites in 2013 Brookfield Property Group Development Sites in 2014 Brookfield Property Group Development Sites in 2016 Brookfield Property Group Brookfield Property Group

One Manhattan West

Highlights • Trophy office tower located on 33rd Street and 9th Avenue anchoring the Manhattan West Development • Designed from the inside out and is capable of supporting the highest occupancy levels through its innovative center core floor plate and virtually column free interior • LEED Gold designated tower reaching 996 feet will boast excellent natural light and incredible 360-degree views of Manhattan • Substantial completion anticipated in Q4 2019

Tower Specifications

Architect Skidmore, Owings & Merrill LLP Mechanical Engineer Jaros, Baum & Bolles Structural Engineers Skidmore, Owings & Merrill LLP Building Size 2.1M RSF Floors 67 + 3 Floor Mechanical penthouse Structure Concrete Core with Steel Frame Typical Floor 31-35,000 RSF Floor Heights 13’ 6” Slab to Slab / 9’ 6” Finished Ceiling Typical Floor Floor to Ceiling Glass / Column Free Lease Spans

17 Brookfield Property Group

18 8 Brookfield Property Group

Two Manhattan West

Highlights • Trophy office tower to be located on 31st Street and 9th Avenue anchoring the Manhattan West Development • Sister tower to One Manhattan West and supports the highest occupancy levels through its innovative center core floor plate and virtually column free interior • LEED Gold designated tower reaching 890 feet with excellent natural light and 360-degree views of Manhattan • Substantial completion anticipated in 1Q 2021

Tower Specifications

Architect Skidmore, Owings & Merrill LLP Mechanical Engineer Jaros, Baum & Bolles Structural Engineers Skidmore, Owings & Merrill LLP Building Size 2.0M RSF Floors 62+ Floors Structure Concrete Core with Steel Frame Typical Floor 31-35,000 RSF Floor Heights 13’ 6” Slab to Slab / 9’ 6” Finished Ceiling Typical Floor Floor to Ceiling Glass / Column Free Lease Spans

19 Brookfield Property Group

Three Manhattan West

Highlights • One of the tallest residential buildings in the U.S. (705 feet) • Rooftop terraces will offer residents sweeping views of the Manhattan skyline and Hudson River • The abundant amenity program, operated by La Palestra, will be one of the more luxurious in the city • 24/7 concierge services will be available for tenants

Tower Specifications

Architects SLCE / Roman & Williams / SOM Mechanical Engineer Cosentini Structural Engineer DeSimone Building Size 844 units (586,000 RSF) Floors 62 Structure Concrete Typical Floor 11,500 - 13,000 GSF Floor Heights 9’-0” / 10’-0” Floor to Ceiling Amenities 33,000 SF indoor / outdoor spaces

20 Brookfield Property Group

Five Manhattan West

Highlights • Renovation will include a new pleated glass façade which will create floor‐to‐ceiling windows on every floor, maximizing daylight penetration while reducing solar heat gain • Interior program includes a redesigned lobby, upgraded and expanded elevators, and enhanced building systems • New retail storefronts will line the base of the building • Incorporating the building into the streetscape with improved retail and other amenities as well as providing greater connectivity to the nearby High Line park

Tower Specifications

Architect REX Mechanical Engineer Cosentini Structural Engineers SOM Building Size 1.7M RSF Floors 16 Structure Cast-in-Place Concrete Typical Floor 104K RSF – 130K RSF Floor Heights 14’-0” / 16’-0” Floor to Ceiling

21 Brookfield Property Group

22 Brookfield Property Group

MANHATTAN WEST 7 MILLION SF + 2 ACRES OPEN SPACE 33rd St.

North Ventilation Tunnel Existing Heat-Only

Customer

Ave.

th 9

South Ventilation Tunnel 370 ~ ‘

31st St. DOT Bridge Rebuilding Area 320 ‘ 270 ‘ 23 Brookfield Property Group

MANHATTAN WEST 7 MILLION SF + 2 ACRES OPEN SPACE 33rd St.

16” Dia. Main

North Ventilation Tunnel Existing Heat-Only

Customer

Ave.

th 9

South Ventilation Tunnel 370 ~ ‘

31st St. DOT Bridge Rebuilding Area 320 ‘ 270 ‘ 24 Brookfield Property Group

Manhattan West Timeline

2014 2015 2016 2017 2018 2019 2020 2021 Platform • Substantial Completion

450 West 33rd Street (1.7 M RSF) • Redevelopment

SW Residential (844 units) • Construction • Apartment deliveries (Q1 2017)

NE Office (2.1 M RSF) • Construction • Initial tenant turnover (Q3 2018)

424 West 33rd Street (0.25 M RSF)

NW Mixed Use (0.18 M RSF) • Construction • Initial tenant turnover (Q2 2020)

SE Office (2.0 M RSF) • Construction • Initial tenant turnover (Q1 2021)

25 Brookfield Property Group

37 District Steam Service Tariff Changes Enabling Resiliency & Sustainability

Armand Agasian February, 2017 Enabling Distributed Generation Backup/Supplemental Service Tariff Changes

• Encourage development of smaller scale projects

• Promote sustainable and efficient generation technologies

• Reduce the economic and administrative burden

• Enhance customer experience

28 Enabling Distributed Generation Backup/Supplemental Service Tariff Changes

• SC4 Standby Rate Changes effective November 1, 2016 • Contract Demand (CD) focused in on December to March, inclusive • 2% bandwidth introduced for CD – Exceedance occurs when above bandwidth – Ratchet of CD then applies and bandwidth moves with it – Surcharge may apply • New multiplier for surcharge when applicable • Customers can lower the Contract Demand • Exemptions from backup/supplemental rate available

29 Enabling Distributed Generation Backup/Supplemental Service Tariff Changes

Exemptions: Designated Technologies: • Efficient CHP up to 1MW Nameplate rating of alternate energy • • Efficient CHP over 1MW, up to 15 MW source is <15% of maximum potential • Fuel Cells thermal demand. • Wind • Solar Thermal and Geothermal • Solar Thermal* • Photovoltaics Customers exempt from electric standby • • Sustainably-managed biomass rates. • Tidal • Designated Technologies Exemption • Geothermal* through May 31, 2019. • Methane Gas

30 Enabling Resiliency of Campus Systems Proposed Steam Interconnection Tariff Changes

• Increase flexibility to accommodate new applicants for steam service.

• Reduce the upfront financial burden for large projects such as campus systems.

• Enhanced customer experience during the interconnection process

31 Enabling Resiliency of Campus Systems Proposed Steam Interconnection Tariff Changes

• Changes proposed December, 2016

• PSC Review and Expected Approval – 2nd Quarter, 2017

• Upfront service prepayment requirements reduced or eliminated – 2 year revenue test increased to a 5 year revenue test

• Additional flexibility in determining point of service termination – Allows for service extension on customer property

32 QUESTIONS?

Contact Steam Business Development for further assistance at:

212-460-2011

Or

Armand Agasian, P.E. [email protected] 212-460-6172

33