Part of the shortfall in energy supply is attributed to energy deregulation, a process that is being carried out in 24 states and the District of Columbia. The energy problems now plaguing California are the most conspicuous example of a deregulation program gone wrong. Developing additional energy-generating facilities will take time, but meanwhile there are measures that can ease the problem, according to the report:
* Approximately 30% of an office building's electrical expense goes for heating, ventilation and air conditioning which can be improved by 15% to 20% by using variable volume systems, zoning damper systems and systems that balance air and water.
* Another 30% of a building's energy cost goes for lighting systems, which can be cut in half by electronic ballasts, dimming electronic and cathode disconnect ballasts, halogen lamps and reflector technologies.
* From 5% to 10% of an energy bill can be cut by selecting an alternate supplier and by negotiating pricing plans that charge a flat unit rate year round.* Some buildings have multiple meters at different locations, which may be treated as separate accounts by the utility. The tenant may receive a more favorable rate if the utility is informed that it has a single customer. The same holds true if the tenant has other properties served by the utility.
The report describes the energy supply and demand in 11 US markets, including reviews of local regulatory action and what may be expected regarding fuel cost volatility.
For New York State, energy reserve margins are adequate until 2002, after which they are expected to slip below normal planning margins. Of 74 new power projects proposed by independent energy providers, only one is forecast to be completed in the next four years.
The report indicates that New York City will continue to labor under the nation's highest energy prices, and this summer could "experience some constraints during peak periods."
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