October 08, 2010

Program to Help Data Centers Reduce Energy Usage and Control Costs Offered by Consolidated Edison and New York State Energy Research and Development Authority

Consolidated Edison Company of New York (Con Edison) and the New York State Energy Research and Development Authority (NYSERDA) today in New York City launched a new partnership to help data centers in New York City and Westchester County reduce their energy usage, save on operating costs and cut greenhouse gas emissions through more efficient use of electricity.

Under the new joint initiative, Con Edison and NYSERDA will work together to provide data centers in the Con Edison service territory with targeted technical assistance as well as $10 million in financial incentives tailored to support energy efficiency initiatives. This funding is available with the goal of reducing energy costs by at least $8 million and achieving more than 55,000 MWh in annual energy savings.

New York State contains the second highest concentration of data centers in the country. These critical components of our information infrastructure also are intensive consumers of energy. Studies have shown that energy consumption from data centers doubled between 2000 and 2005. With many data centers reaching capacity within their existing footprints, businesses are faced with either optimizing their operations or designing and building newer, more efficient facilities.

The joint initiative was announced at a conference hosted at the New York Stock Exchange Euronext by NYSERDA, Con Edison, and AMD (NYSE: AMD) where energy experts also discussed the current industry shift towards cloud computing and how it is impacting the financial sector. Cloud computing, or computing in which services and storage are provided over the internet, may provide cost effective ways to diversify data centers' computing loads and reduce their energy consumption, while promoting growth in this sector.

“New York State has a high concentration of mission-critical data centers. Data center operations have historically maximized uptime and reliability without always focusing on energy efficiency,” said Kevin Burke, Chief Executive Officer of Con Ed. “Through the Con Edison / NYSERDA Joint Data Center Initiative, we'll be working together to create sustainable information technology. Efficiency savings from these data centers can help manage peak energy demand, and provide real dollar savings not only to data centers but to all customers in our service territory.”

“Energy management is absolutely critical for data centers to control costs while minimizing environmental impacts,” said Francis J. Murray, NYSERDA President and CEO. “Combining the energy expertise and resources of Con Edison and NYSERDA will provide data centers with the best options possible to meet their growing energy needs. This important partnership will give data centers targeted and individualized solutions to meet their growing energy needs.”

“In response to the challenge to reduce the state's electricity usage by 15 percent by 2015, the Commission has embarked on what is perhaps the most aggressive energy efficiency initiative in the nation,” said Garry Brown, Chairman of the New York State Public Service Commission. “This unprecedented effort requires the participation of residential and commercial customers alike. The partnership announced today will play an important role in helping us achieve the goal of reducing energy consumption in New York.”

“AMD and NYSERDA have a long-standing relationship and history focused on reducing energy consumption in data centers,” said Don Newell, VP and CTO, Server, AMD. “Energy efficiency is a chief factor in reducing data center energy consumption and costs. This joint initiative is a strong step in delivering the financial and technical assistance customers require to create, expand and maintain next generation data centers.”

“The NYSE is pleased to support this initiative spearheaded by NYSERDA and Con Edison to work together on achieving the most sophisticated, innovative and technologically-advanced data centers in the greater New York area,” said Steve Rubinow, Global Chief Information Officer, NYSE Euronext.AMD and NYSERDA have been instrumental in driving sustainable computing and business practices in New York. AMD has been a leader in developing and deploying products designed to improve the efficiency of personal computers and IT hardware. Improvements in operating practices, coupled with the installation of energy efficient systems, can result in significant energy savings and reduce the strain information technology and data centers place on the electric grid. These improvements can help ensure a reliable and affordable supply of electricity.

Energy savings support will be offered for projects that maximize return on investment including Information Technology equipment upgrades and management strategies that reduce energy use per unit of data processed or stored, such as server upgrades, virtualization, and storage consolidation and infrastructure upgrades such as those that reduce cooling needs.

The joint initiative brings together the program and technical resources of Con Edison and NYSERDA to work collaboratively to identify energy efficiency opportunities for data centers in New York City and Westchester, and assist them through the design and implementation of sustainable, cost reducing, energy efficient measures and practices. Customized lists of energy efficiency measures will be developed and prioritized based on return on investment, a phased implementation plan and customer goals as they relate to advancing data center efficiency practices.
The Data Center Efficiency Programconsists of four main components:

• Technical Assistance Studies for data centers interested in identifying their energy efficiency options.
• Energy Efficiency Incentives for retrofit and new construction projects to off-set the cost of energy efficiency improvements.
• Customer Installation Support to provide participating data centers with a complete package that addresses all energy related issues critical to their facilities' operation.
• Outreach, Education, and Marketing to recruit data centers into the initiative.

To participate in the program, data center operators can call 212-701-7222. For additional information, customers can visit NYSERDA.ny.gov or www.conEd.com/energyefficiency.

Con Edison and NYSERDA Data Center Initiative

On June 23, 2008, the Commission issued a decision establishing the New York Energy Efficiency Portfolio Standard (EEPS) proceeding to reduce New Yorkers' electricity usage. Numerous energy efficiency programs have since been approved by the Commission and are being administered by the state's utilities and NYSERDA.

Consolidated Edison Company of New York is a subsidiary of Consolidated Edison, Inc. [NYSE: ED], one of the nation's largest investor-owned energy companies, with approximately $13 billion in annual revenues and $34 billion in assets. The utility provides electric, gas and steam service to more than 3 million customers in New York City and Westchester County, New York. Con Edison is a Dow Jones Sustainability Index company, and has been recognized for its environmental performance by the global Carbon Disclosure Project (CDP), Innovest Strategic Value Advisors, the U.S. Environmental Protection Agency, the U.S. Department of Energy and other organizations. For additional information, visit us on the Web at www.conEd.com, at our green site, www.conEd.com/thepowerofgreen, or find us on Facebook at Power of Green.

NYSERDA offers innovative programs, technical expertise and funding to help consumers increase energy efficiency and save money while helping businesses create clean energy solutions. NYSERDA's professionals help New Yorkers reduce energy consumption, increase the use of renewable energy, protect our environment and create clean energy jobs. A public benefit corporation, NYSERDA has been developing partnerships to advance innovative energy solutions in NY since 1975.

Contact:

Jeffrey Gordon, NYSERDA
518-862-1090 ext. 3544
jrg@nyserda.ny.gov

Susan Gunn, Con Edison:
212-460-4074