The hydropower generated by the mighty Niagara Falls is the real authority behind the New York Power Authority (NYPA). The company generates and transmits more than 20% of New York's electricity, making it the largest state-owned public power provider in the US. It is also New York's only statewide electricity supplier. NYPA owns hydroelectric and fossil-fueled generating facilities (17 in total) that produce about 5,700 MW of electricity, and it operates more than 1,400 circuit-miles of transmission lines.
The authority sells power to government agencies, municipal systems, rural cooperatives, private companies, private utilities (for resale), and neighboring states. Its clients include some of the largest electricity users in the US, including the New York City government and the Metropolitan Transportation Authority. NYPA receives no state funds or tax credits. Instead, it finances new projects through bond sales.
Following its shift from a regulated monopoly to a competitor in an open power market, NYPA is aiming to grow by reducing the cost of the energy it provides and by developing electric transportation (such as electric cars) and other energy-efficiency projects, including installing emergency power generators in metropolitan buildings. It is also working to improve the state's transmission grid, increase its generating capacity, and help support the state's directive to get 45% of its power from clean energy sources by 2015 (include 100 MW of power from solar arrays at buildings across the state). Participating in the green energy push, by 2010 NYPA's fleet of more than 1,200 electric vehicles had logged more than 11 million miles of service.
Low commodity prices and depressed demand prompted by the global recession hurt NYPA's revenue performance in 2009. In 2010 revenues and income were down further, largely due to lower power generation from its main Niagara plant (because of lower lake levels) which, in turn, limited the power volumes that the NYPA was able to sell.
To improve its delivery of power, is pursuing the development of a new cross-Hudson transmission line that will connect New York City customers to the PJM Interconnection power grid.
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