NEW YORK BUILDING CONGRESS
ENERGY COMMITTEE MEETING
ELEVEN MADISON PARK RESTAURANT
11 Madison Avenue
Thursday, November 13, 2003
12:00 p.m.

Summary of Discussion

Attendance:
John J. Gilbert and William A. Harkins, Co-Chairmen, Richard T. Anderson, Kate Ascher, Robert Ballard Jr., Robert B. Catell, John A. Cavanagh, Paul A. Crotty, Peter L. DiCapua, Gavin J. Donohue, Tom Dunne, Kenneth A. Durr, Ashok Gupta, Martha M. Holstein, Seth Hulkower, Joel B. Landes, Gene Lempicki, Joseph Littmann Jr., J. Robert Mann Jr., David J. Manning, Alton G. Marshall, Eugene R. McGrath, Frank McLoughlin, James E. McMahon, Louise M. Morman, Patricia Noonan, Gil Quiniones, Frances Resheske, Rosemary Scanlon, Howard Shapiro.

Guests:
Jaclyn Brilling, Gary Davidson, Tom Dunleavy, William M. Flynn, Neal Gavin, Lenard Weiss.

Staff:
Cathy A. DelliCarpini-Kruse, Maria Rybchevsky.

Co-chairman John Gilbert welcomed the Committee members and guests and thanked KeySpan and New York Building Congress for hosting the luncheon. He asked for and received approval of the minutes of the Energy Committee meeting held on May 29, 2003.

Mayoral Task Force on Energy
Co-Chairman William Harkins briefed the committee on the Mayoral Task Force set up by the Economic Development Corporation to recommend energy policies to Mayor Bloomberg. He said several sub-groups have been formed, including one on the energy supply outlook. The task Force is building on the work of the Building Congress Energy Committee and other organizations.

Mr. Harkins said the Task Force has concluded that at least 2,600 MW of new supply are needed over the next five years. Recommendations have been drafted and are being reviewed by the administration. He said the report will be a “living document” that is continuously kept up to date.

Gil Quiniones, who is staffing the Task Force, said the report will be released by the end of the year. The Mayor is looking for a review of the City’s total energy system and how New York can meet its energy needs most effectively.

New York Affordable Reliable Electricity Alliance
President Richard Anderson reported on a new coalition established to promote ample and reliable electricity supply in the metropolitan area, particularly through retention of the Indian Point power complex. He said the diverse group includes business, labor, and community leaders – several of whom are members of the Energy Committee.

Gavin Donohue and Howard Shapiro, both of whom are members of the coalition, commented on its importance to counter local opposition to Indian Point and other energy producing facilities. They suggested that additional members would help widen the coalition’s base of support.

Guest Speaker
John Gilbert introduced Public Service Commission Chairman William M. Flynn, who was nominated by Governor Pataki in January 2003 and confirmed by the Senate on February 4, 2003. Prior to his appointment, Mr. Flynn served as President of the New York State Energy Research and Development Authority. An attorney, Chairman Flynn also worked in several other governmental capacities.

Mr. Flynn welcomed the opportunity to address the Energy Committee. He introduced three other Public Service Commissioners in attendance – Tom Dunleavy, Neal Gavin, Lenard Weiss – as well as PSC’s staff.

Chairman Flynn highlighted the overall energy situation in New York State, especially from the standpoint of the lessons of the August 14 blackout. He said it is reassuring that service was restored so promptly, and much of this is the result of good communications between government and industry. The PSC is preparing an evaluation of what actually occurred and “there will be recommendations, even though the system is reliable and well managed.”

With respect to deregulation, Mr. Flynn said there was no evidence that it was the cause of the blackout. He said “we are not turning our back on deregulation” and will continue to press to conclude outstanding deregulation cases.

Mr. Flynn also discussed the high priority he is attaching to security issues. He suggested that members of the Energy Committee should make every effort to communicate regularly with the Public Service Commission.

In discussion, Mr. Catell asked about the status of the Article X reauthorization process. Mr. Flynn said the issue was with the Legislature, and PSC wants it to be resolved as quickly as possible.

In response to question about how the PSC can encourage infrastructure investment, Mr. Flynn said the challenge is financing. He also discussed long-term contracts and said “I’m not opposed as long as it makes sense in a diverse energy portfolio.”

Mr. Manning asked about the challenges to bringing new supply into New York. Mr. Flynn said new transmission is essential but “we must be smart about it.” He also discussed the renewable portfolio standard and said “we are serious about the proceeding,” including the timing. But he made it clear that the PSC is going to do the right thing and not rush to judgment.

Adjournment
There being no further business, Mr. Gilbert thanked Chairman Flynn, guests and hosts for an informative and enjoyable luncheon meeting.

Prepared by,

Richard T. Anderson
President