Managing Infrastructure
A recently opened substation in Manhattan will generate enough energy to power 100,000 homes.
A cornerstone of the company's business strategy is on-going investment in its energy delivery infrastructure. Con Edison continues to make substantial investment in its electric, gas, and steam facilities.
The company is in the midst of its busiest period of building in three decades. Infrastructure investments are critical in meeting our customers' increasing demand for energy. In 2008, two new substations in Westchester and East Harlem were energized. We must build today to meet tomorrow's energy needs. Continued growth in energy demand will require the construction of thirteen new substations over the next three years.
Transformers throughout Con Edison of New York's electrical network are being filled with a vegetable-based ester oil rather than petroleum-based oil.
Building necessary infrastructure is especially challenging in a densely populated city, where real estate is scarce and expensive. Prices can surpass $25 million for a 40,000-square-foot plot. Construction of a typical power-distribution substation can be $100 million. A transmission switching station can be double that cost.
At the same time, the company will make additional investments in the transmission system that brings power from distant generation sources to our service area. In 2008, Con Edison of New York began construction on a 10-mile, high-voltage underground transmission line that will run from Yonkers to upper Manhattan. To enhance distribution line reliability, we installed 2,200 miles of underground cable and more than 360 miles of overhead wire last year. Over the next three years, the company plans to invest $7.3 billion to build, replace, and upgrade systems. Last year alone, we invested $2.3 billion in infrastructure improvements.
The company plans to invest $7.3 billion over the next five years to build, replace, and upgrade systems and equipment.