Published: Summer 2001
J-51 EXPANDED FOR ELECTRICITY
EQUIPMENT
On July 16, 2001, Mayor Giuliani signed into law Intro 802
which promotes energy conservation efforts by making the installation
of electrical submetering and master-metering equipment eligible
for J-51 tax incentives. This acknowledges the value of master
metering to aggregate building power to benefit from the best
possible rates. Master metered buildings have one meter to
measure all electricity used in the building. They purchase
energy at a wholesale rate, which varies based on time of
use, with the highest rates charged for electricity used during
peak periods.
The buildings which install a master meter already have individual
meters measuring use in each apartment. Astute managers recognize the
importance of shifting use patterns. They understand that they can achieve
significant savings when they educate staff and residents to shift use
from peak to off peak hours. As the building takes over reading these
meters and billing residents based upon use, saving will be threefold:
resident will pay only for electricity actually used in their apartment;
the cost of electricity will be based on the bulk rate through master
metering; and conservation measures flattening the peak will significantly
reduce the rate paid at highest use.
If significant reductions in peak use can be achieved citywide, the
older, less efficient energy plants which are currently maintained to
meet peak demand for energy, could be retired and and replaced by smaller,
more efficient, cleaner power plants.
At CNYC's 21st annual Conference on Sunday, November 11, professional
engineer Herb Hirschfeld will conduct a seminar on electrical submetering
and mastermetering. Mr. Hirschfeld has access to incentive funding from
NYSERDA for these energy conservation programs. To register for his
class, consult the Conference Brochure inserted opposite page 10 of
this Newsletter.
CITY OFFERS CLASSES IN
WATER CONSERVATION
By 2004, every building in the city of New York will pay for water based
upon use. After more than a decade of meter installations, most buildings
now have water meters. Upon comparing meter readings to their frontage
charge, many buildings have chosen to be billed based on use, while
others continue on the frontage formula, when it appears to be lower
than the meter reading. These building must work to detect possible
hidden leaks and to educate residents to conserve water, because the
frontage option will be eliminated in 2004. Buildings that do not wish
to be billed by meter readings can select a cap which is currently $420
per unit per year (and which will be increased by the same percentage
as water rates each year). A prerequisite of the cap program is installation
of low flow toilets and faucets throughout the building.
Buildings with high water use should study their situation now and determine
whether the cap is most appropriate. Water conservation measures may
bring the water bill into line.
The New York City Department of Housing Preservation and Development
(HPD) and the Department Environmental Protection (DEP) are co-sponsoring
water conservation seminars for building managers, superintendents,
home owners and the public. All classes include a lecture on plumbing
and heating systems and practical advice on how to save water and energy
as well as water/sewer billing issues. Participants receive an extensive
manual and readings which cover plumbing/ heating system maintenance
and water/sewer billing issues. There is no charge for these classes,
which are offered one Tuesday evening and one Thursday morning each
month and at 100 Gold Street in lower Manhattan. For a schedule of these
and other HPD classes call HPD's Training Unit at (212) 863-8830.
CONSIDER COGENERATION TO
REDUCE POWER COSTS
Engineer Herb Hirschfeld also has funding from the New York State Energy
Research and Development Authority (NYSERDA) to expand and promote the
utilization of cogeneration within the multi-family housing sector of
New York, and specifically to cover half the cost of installing state-of-the-art
pilot cogeneration equipment in a Queens co-op and to use the experience
to develop a template design for use by similar buildings. The project
is jointly sponsored by the Federation of New York Housing Cooperatives,
whose strong base of Section 213 cooperatives, built in the 1950's and
60's could all benefit from use of the template design. CNYC members
of similar building characteristics would be able to adopt this template
to their own use. The goal is to encourage manufacturers to design specific
equipment suited to the needs of this type of residential building.
The template would be suitable for buildings of 120 to 150 units which
are currently master-metered; larger buildings could use multiple cogeneration
units. It is anticipated that affordable cogeneration equipment suitable
to the needs of smaller buildings will be developed once it is proven
that a market exists for these products.
Cogeneration is the name given to the process of generating electricity
for part or all of the building's needs; the heat generated in the production
of electricity is used to heat domestic hot water, providing considerable
savings for the building. Mr. Hirschfeld is also developing an informational
package on the subject of cogeneration. CNYC will alert members when
this information is available. For additional information about cogeneration
or to e-mail questions to Mr. Hirschfeld, visit his website at www.submeteronline.com.
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