NYC to be testbed for power project

NYC to be testbed for power project

	Published : Mon, 21 May 2007 18:32 By : Agencies Print this Story

WASHINGTON (AP) - New York City is the testing ground for a $39.3 million Department of Homeland Security project that will use new superconductor cables designed to prevent blackouts caused by power surges.

The agency last week signed a $1.7 million contract with American Superconductor Corp. to make high temperature cables, which will be used by New York utility Consolidated Edison Inc. under the terms of a separate contract.

Financial terms of the deal between the two companies were not disclosed, but Con Ed and American Superconductor are together providing one third of the funding for the project, according to the government.

The 'secure super grids' use high-temperature superconductor wires and power cables to increase power while maintaining the ability to suppress surges, American Superconductor said.

Jason Fredette, a spokesman for Westborough, Mass.-based firm, said the company's goal is to expand to other major metropolitan areas and urban centers after a successful 'proof of concept' in New York.

The design process will start this week with a focus on ensuring that the lab demonstrations are rigorous enough to work at the city's substations, said Con Ed spokesman Michael Clendenin. If the cables work under New York City's congested streets, they should work anywhere, he added.

The DHS program is a small part of an overall expansion and upgrade to Con Ed's system. The power company earlier this month asked state regulators for a rate increase that would raise its average customers' electricity bills by 11.6 percent beginning next April.

If approved, it would bring Con Ed, which is spending more than $7.5 billion on the project over the next five years, an additional $1.2 billion in revenue, Clendenin said.

DHS spokesman Christopher Kelly said the agency is focused on the New York City project, which will not be operational until 2010 assuming a successful test period. But if the system works there, the goal is to expand to other cities, he added.

DHS has earmarked $5 million for the project this year with the remaining $20 million coming over the next three years, Kelly said.

Shares of American Superconductor added $2.28, or 15.2 percent, to $17.28 after earlier hitting a 52-week high of $17.50. The company's stock has traded between $6.73 and $15.24 in the past year. Con Ed added 3 cents to $50.98 in afternoon trading.