Energy: The Dilemmas of Power

The U.S. has an insatiable appetite for electricity. By 1979, the nation's utilities must increase their generating capacity from 300 million kilowatts to more than one billion. They must build at least 250 large new power plants. Meanwhile, they confront rising revulsion against the pollution caused by such plants. Says Lee White, the outgoing chairman of the Federal Power Commission: "The major problem that the industry faces is the sharply increased concern of the U.S. over environmental considerations."

No man is more agonizingly aware of this than Charles Franklin Luce, chairman of New York City's Consolidated Edison, the world's biggest electric utility. Before coming to Con Ed. Luce dealt with environmental problems as Under Secretary of the Interior. An ardent outdoorsman, he now finds himself cast as a villain by New Yorkers, who have long regarded Con Edison as a blatant polluter. Last week they were incensed over Con Ed's request for a 14% rate increase, its second in three years. Con Ed is in financial trouble, much of it aggravated by a longstanding inefficiency that discourages investors. At the same time, like every other U.S. utility, Con Ed is buffeted between uncoordinated regulatory bodies and proliferating conservation groups.

Four years ago, a massive power failure plunged the Northeast into stygian blackness. Last month disaster loomed again when the million-kilowatt generator at Con Ed's Ravenswood plant short-circuited. Since two smaller generators were temporarily out of order, New York suffered a "brownout" that dimmed lights and made air conditioners wheeze. Last week Luce sighed with relief when "Big Allis" (named for the Allis-Chalmers generator) came back on the line. But relief can only be temporary for Con Ed. It must currently generate 7,350,000 kw. at peak load, and 10.9 million within a decade. Even when it buys power from other utilities, Con Ed can maintain a reserve capacity of only 21%—too slim for the peak demands of New York. Worse, Con Ed is balked in its plans for future needs.

Foes and Factions. Seven years ago, Con Ed predicted this summer's demands, but one setback after another thwarted the company's ability to meet them. The fact that Con Edison was shortsighted and sometimes secretive did not help its planning. Its "keystone" for avoiding another blackout was a 2,000,000 kw. pump-storage plant on Storm King Mountain. By 1967, the plant was supposed to pump water from the Hudson River to a huge reservoir atop the mountain, then release it downhill to run hydroelectric generators during peak periods. Groups opposing the project because it would deface the scenic river gorge won a court delay. Since 1965, Con Ed has tried to appease such critics by investing $15 million in plans to bury the Storm King powerhouse and create a park along the river front. Now New York City is also protesting that the project threatens its underground water aqueduct. Even with a go-ahead, Storm King could not be built before 1976.