20Q9 fl," Y I B e;," 10: 21 NRDC NATURAL RESOURCES DEFENSE COUNCIL THE EARTH'S BEST DEFERS[

May 15, 2009

By Email and Regular Mail

Rudy Stegemoeller, Administrative Law Judge New York State Department of Public Service Three Empire State Plaza Albany, NY 12223-1350

Re: Case 09-S-0029, Proceeding on Motion of the Commission to Consider Steam Resource Plan and Re-powering Project Cost Allocation Study, and Energy Efficiency Programs for Company of New York, Inc.

Dear Judge Stegemoeller,

The Natural Resources Defense Council and Riverside South Planning Corporation are writing to request the additional analysis that Con Edison complete as part of the work in Case 09-S-0029. This request entails an assessment of alternative cases for the Generation Station that parallels the Hudson Avenue Steam Station assessment.

59°' Street Generating Station

At the March 31, 2009 Technical Conference in this proceeding, the Natural Resources Defense Council (NRDC) and the Riverside South Planning Corporation (RSPC) made a presentation on the status of the Riverside South development, the additional development that has taken place around the 59`s Street Generating Station, and the additional approximately 4.8 million square feet of new development immediately contiguous to the Station that is pending before the City Planning Department. We have attached a modestly updated and corrected copy of the material provided to the parties before the Conference and will be happy to provide a copy of the slides used in the presentation upon the request of participants.

Pursuant to the Mayor's P1aNYC policies, the City Planning Department has required the developer of Riverside South, Extell, to assess the viability of creating an energy district to provide the electric, heating and cooling requirements of the new development with a cogeneration system. In addition, the developer immediately south of the Generating Station, the Durst Organization, has expressed a willingness to assess the viability of building a cogeneration plant on its property that would be sized to meet the requirement of the new development and to replace the power provided by Generating Station.

40 West 20 Street washington, dc • los angeles • san francisco • new york • chicago • beijing New York, NY 10011 tel 212 727-2700 fax 212 727-1773 In a related matter, the NYC Landmark Preservation Commission has recently set a date for a public hearing to consider designating the outside of the 59th Street Station as a landmark. Built in 1904 to power 's first subway, the Interborough Rapid Transit (IRT) Powerhouse occupies an entire city block from West 59`s to 60th Street between Tenth Avenue and the Highway. McKim Mead & White designed this massive public building. It is part of the uplifting, civic-minded architecture of the City Beautiful movement on a par with other New York City Beaux-Arts designated landmarks such as the New York Library, the Metropolitan Museum of Art and the Farley Post Office. Consolidated Edison took over the facility in 1960. Con Edison has largely removed the antiquated electric equipment and installed steam boilers, but only occupies approximately 12% of the interior space today.

Because Consolidated Edison utilizes only a small portion of the interior space in the Powerhouse, NRDC and RSPC have requested that the City develop a proposal for the conversion of the Generation Station to a Cultural/Community Center. By way of example, the Tate Modem Museum in London was renovated from a powerhouse to a world-class cultural center. It is very similar to the inside of the Con Edison Power Plant. We believe that consideration of this alternative could lead to a major enrichment of the area, both economically and culturally, and enhancement of the proposed new development at Riverside South.

In support of the City effort, the NRDC and RSPC seek an assessment by Con Edison of alternative means of meeting the power requirements of the new development yet-to-be-built around the Generating Station and to assess the feasibility, costs and benefits of building a new cogeneration plant that replaces the power from the Generating Station. We request that Con Edison provide an assessment of the costs and benefits to Con Edison and the ratepayers if the plant is retired as a source of steam and is replaced by a new cogeneration plant immediately to the north or south of the Generating Station, or at another suitable location on the same network. The analysis should consider at least two different sizes for a new cogeneration plant as follows: • Cogeneration that is sized to replace the steam produced by the Generating Station, and • Cogeneration that is sized to replace the steam produced by the Generating Station and to meet the electric, heating and cooling requirements of the new development. Further, we request that in addition to the analysis provided for the Hudson Avenue Steam Station assessment, the assessment consider alternative dispatching regimes, include the cost of decommissioning the Generating Station, afld specify the space required and the impact on the consumption of City water.

At the technical conference, Con Edison said that the space in the building was being more fully utilized than indicated by the pictures in the presentation by the RSPC. We believe that almost all of the lower levels are used for storage of pipes and other equipment, and that the main floor is largely vacant except for a training station for inspectors and the temporary storage of the equipment needed for water treatment. We request that Con Edison provide a detailed assessment to the degree to which it utilizes the space available in the building (including a floor plan for each floor), identify the purposes for which the space is utilized and, importantly, if the stated purposes are permanent or temporary.

Respectfully submitted,

40 West 20 Street washington, dc • los angeles • san Francisco • new york • chicago • beijing New York, NY 10011 tel 212 727-2700 fax 212 727-1773 Brandi Colander Attorney Natural Resources Defense Council 40 West 20th Street, 11th Floor New York, NY 10011 (tel) 212-727-4480 (fax) 212-727-1773

Paul J. Elston, President Riverside South Planning Corporation 99 Park Avenue, Suite 2200 New York, NY 10016 (tel) 212-370-3630 (fax) 212-599-6282 cc: Consolidated Edison Active Parties

40 West 20 Street washington, dc • los angeles • san francisco • new york • chicago • beijing New York, NY 10011 tel 212 727-2700 fax 212 727-1773

Natural Resources Defense Council (NRDC) and the Riverside South Planning Corporation (RSPC) Presentation on the 59th Street Generation Station at the 09-S-0029 Con Ed steam March 31 technical conference

The 59th Street Generation Station is located in the midst of a large amount of new residential development and contiguous to two new waterfront parks that are part of the Greenway. The NRDC and the RSPC believe the 59th Street Generation Station may be relatively inefficient and polluting when compared to a combined heat and power plant that would serve electricity, cooling and heating needs of 4 million square feet of new development and replace the power currently produced by the Generating Station. The Generation Station is located in a landmark building and the interior is severely underutilized. The RSPC has urged the City to develop a plan for converting the plant to a public use, such as the Tate Modem of London.

In this document we will discuss the: - Status of the Riverside South development - History and current operation of the Generation Station - Landmark qualities of the building and conversion to a Cultural/Community Center

The Riverside South Development The Riverside South development project includes 7.9 million square feet of new residential buildings and a 21.5-acre waterfront park that is part of the Hudson River Greenway. The development is about 60% completed.

I. 315 West 61- Street 2 Freedom Place South 3 West Park 4. Avery 5 Rushmore - just opened 6 59t IRT Street Powerhouse

7 Durst Organization Property 8. John Jay (CUNY) 9 10 West End Avenue to. Amsterdam Houses 11. Lirroki Center 12. Fordhom University 13 Time Warner Building 14 Lincoln Towers 15 Hudson River Park 16 Waste Transfer Station

I The plan for the development that was approved by the City Planning Commission grew out of a collaboration between Donald Trump, the original developer, and the RSPC, a non-profit corporation that represents the interests of its seven member organizations - the Municipal Art Society, the Regional Plan Association, New Yorkers for Parks (formerly known as The Parks Council), the Riverside Park Fund, Westpride, Natural Resources Defense Council and the New York League of Conservation Voters. In 2004, Extell Corporation purchased the site and development rights and obligations from Hudson Waterfront Associates, and organization headed by Donald Trump.

The 591h Street Generating Station at the edge of the project may provide an extraordinary opportunity to create a spectacular public space and provide the anchor for a vibrant connection for the local community to the waterfront park. The NRDC and the RSPC plan to work with the City to evaluate the energy efficiency and economic efficiency of the current operation at the Con Ed plant and to develop alternative energy strategies for meeting the energy requirements of the proposed new development and the Con Ed steam system.

Approximately, 53% of the buildings have been built - buildings A-I and 0, which account for approximately ; C_:c 4,167,942 square feet ofuseable < o,!Lb C square feet out of the total of 7,898,074 authorized by the City. A " building on Parcel J (480,935 square feet authorized) is under construction. A second building on Parcel J and buildings on Parcel (878,882 square feet authorized) are in design Status 1 % Built (A-I and 0) 4,167,942 53 Developer has proposed a plan for Parcels Under Construction (J7) 480,935 6 L/M/N, which will be subject to a Design (.12 and K) 878,882 11 Planning (L, M and M 2,372,192 30 Commission and the City Council after the completion of an Supplemental Total Authorized 7,899,951 100 Environmental Impact Statement (SEIS) and Uniform Land Use Review Process (ULURP).

The project approvals by the City in 1992 require the Developer to contribute the land and other rights necessary to build a 21.5-acre park in the area west of the development along the Hudson River, and to fund the construction of the Park up to a limit of approximately $68 million. Construction of the Park on the waterfront has been completed and is open to the public. The balance of the park is in design and will be finalized after the City Planning Commission approves a plan for Parcels L/MIN.

The State and City plan to relocate the Miller Highway viaduct through a tunnel in order to complete the Park. Early construction of the tunnel shell is underway on the south end

2 of the development. The developer is currently constructing the northbound lane of the tunnel shell between 61s` and 65`h Streets. We have asked City Planning to consider

Miller Highway Relocation - Stages of tunnel Actual Tunnel Shell construction shell construction November 2008 requiring the developer to construct the tunnel shell for the southbound lane as part of the completion of buildings on Parcels L/M/N. Early construction of the tunnel shell between 6l6` and 67`h Streets will reduce impacts on the local community by eliminating the need to dig up the park on the south end after it has been newly constructed, and would allow for the use of the existing construction-infrastructure. Construction by the developer will be the cheapest and fastest way to construct the tunnel shell with the least disruption for the local community. We are seeking funding from the developer for the early construction of the tunnel shell. We are also seeking funding for the next stage of construction under the Federal stimulus legislation. Relocation of the Miller Highway is scheduled for approximately 2025-2030 when the viaduct would otherwise undergo a major refurbishment.

t The plan for the use of the area below the new development on Parcels L/M/N is important because of the strategic location of the site - contiguous to the Generation Station, the mpue onnectton railroad line and the Hudson River waterfront. The NYC Planning Department has required the developer to evaluate the creation of an energy district to provide the electricity, heating and cooling requirements of the new development. Metro-North is planning for a new railroad station at the site.

3 Power Operations While the 591h Street IRT Powerhouse originally provide electricity for the subway system, Con Edison has largely dismantled the electricity capacity and removed it from the plant. Currently, Con Edison uses the plant primarily to produce steam for its Steam System. The Steam System serves around 1800 customers city-wide with steam for space heating and hot water and provides 363 of those customers with steam for cooling equipment. The number of customers served by the system has shrunk modestly during the past five years and business is only marginally profitable for Con Ed - producing a net loss to the company in 2004.

We view the steam system as an important environmental asset, particularly if the distribution system is attached to efficient cogeneration. The Steam System comprises more than 100 miles of main and service lines. Steam is transmitted at 400 psig and is distributed at 150 psig. The steam for the System is produced at four stations in Manhattan and one each in Brooklyn and Queens. In 2004, Con Ed made a major upgrade of it East River Station at 14`h Street installing a new, efficient Combined Heat and Power Plant that produces steam and electricity. 36% of Con Edison's 2004 steam output was produced in steam/electric generating plants and 15% was purchased from the Brooklyn Navy Yard Cogeneration Plant. 51% was produced by the six steam-only plants including the 59th Street Power Plant.

The 59th Street IRT Powerhouse produces about 10% of the steam for Con Edison's steam system and the building contains five boilers. As part of its Steam Resource Plan, Con Edison evaluated installing a 43 megawatt gas turbine within the existing building to meet a portion of the steam requirement with cogeneration, but concluded that the existing boilers are in good shape and should continue to operate as-is. Con Edison did

4 not evaluate a larger generating plant to meet all of the steam requirements with cogeneration due to space and natural gas supply constraints. We believe the Plant is inefficient and that a new cogeneration plant would be 2-3 times more efficient.

The NRDC and the RSPC plan, in cooperation with the New York City Economic Development Corporation and Con Edison, to evaluate the energy efficiency and requirements of a cogeneration plant to serve an energy district for the new development at Riverside South and to replace the power produced by the existing operations of the Power Plant. If this evaluation shows sufficient energy efficiency, it might be possible to retire the Con Edison Power Plant as a power station and to convert it to a cultural center. NYCEDC would be interested in participating in such a study.

We have requested that the engineering evaluation: 1) Define the power requirements of the New Development including: a) 3.4 million square feet of residential development on the Extell property b) 600,000 square feet of commercial development on the Extell property c) 800,000 square feet of residential development on the Durst Property 2) Define the power required for the Con Ed Steam System to replace the system currently operating in the 59`h Street Generation Station. For each set of requirements, we have asked for an evaluation of the space requirements, economics and energy efficiency of each of the alternative configurations of the cogeneration.

The City Planning Department, working in coordination with the NYCEDC, has require the developer, Extell, to study the alternatives for an Energy District to serve only the new development as part of its SEIS. City Planning determined that it could not "require" the developer to complete the evaluation of the Con Edison operation. However, the developer immediate south of the Powerhouse, The Durst Organization, has agreed to study the possibility of locating the cogeneration plant on their property. NYCEDC and the Durst Organization have discussed the possibility of such a study.

RSPC Proposals RSPC is proposing that the block immediately north of the Generating Station become a park that connects the local community to the waterfront, provides access to Riverside Park South, and preserves the view of the Hudson River and the Generation Station as a NYC landmark.

The RSPC plan recognizes the majesty of both the

5 exterior and interior of the Generation Station and the potential for converting it from a power plant to public space with a strong connection to the new park between 59th and 60th Streets. We are urging the City to develop a plan for converting the building to a Cultural Institution/Community Center to be a operated by the Department of Parks Recreation, with the steam required by the Con Edison steam system provided by a new, efficient cogeneration plant located immediately north or south of the plant.

The landmark building that houses the Generation Station was built in 1904 to power New York City's first subway, the Interborough Rapid Transit (IRT) system. The Powerhouse occupies an entire city block from West 59`h to 60`h Street between Tenth Avenue and the . McKim Mead & White designed this massive public building. It is part of the uplifting, civic-minded architecture of the City Beautiful movement on a par with other New York City Beaux-Arts designated landmarks such as the New York Library, the Metropolitan Museum of Art and the Farley Post Office.

Initially, it was known as the Interboro Rapid Transit (IRT) Powerhouse and served as the primary source of electricity for the predecessor to today's MTA Subway System. The power plant was able to produce more power than any other built at the time, about 100,000 horse power or 75 megawatts of capacity. The building was used by the IRT and its successor, the NYC Board of Transportation, until 1959. The City sold the building to Con 'kw ut P'wf' N . tkLxI-rMtef t)MIs O.M.1 Powerhouse Rendering circa 1904 Edison in 1962 for use as a Generating Station, but the operation only occupies approximately 12% of the interior space today.

When the Landmarks Preservation Commission first considered the Powerhouse for designation in 1979, it described the building's significance as "the most monumental building associated with the subway system in New York City" and "This mammoth structure was the largest powerhouse in the world upon its completion in 1904, and it represented the highest level of technical sophistication in the production of electrical power at that time." In 1989, the New York State Office of Parks, Recreation and Historic Preservation determined the Powerhouse "eligible" for the State and national Registers of Historic Preservation.

During the past fifteen years the area surrounding the Powerhouse has been transformed with the creation of the Hudson River Park and Riverside Park South, expansion of John Jay College immediately east of the Powerhouse, and a very significant increase in residential properties nearby. The surrounding neighborhood has become fertile ground for high-rise residential development. Most immediately, the City Planning Department

6 is considering development proposals for the blocks to the north and south of the Powerhouse.

Operating Room 2008

Because Consolidated Edison utilizes only a small portion of the interior space in the Powerhouse, we believe the City would create public benefit by converting the Powerhouse to a public space, a community and/or cultural center. The RSPC has requested that the City develop a proposal for the conversion of the Generation Station to a Cultural/Community Center. By way of example, the Tate Modem Museum in London is shown below before its renovation. It is very similar to the inside of the Con Edison Power Plant. We believe that consideration of this alternative could lead to a major enrichment of the area, both economically and culturally, and enhancement of the proposed new development at Riverside South.

Before Renovation After Renovation Tate Modern in London

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