BY MICHAEL WOLFE, MIDBORO MANAGEMENT
There's a debate brewing about DC, currently, and it has nothing to do with our nation's Capitol. Rather, this DC is the acronym for "direct current" and it comes from a utilities company, Consolidated Edison (Con Edison). Right now, co-ops, condos and rental buildings are facing a new set of unwelcome costs: Charges being imposed for the use of DC current, which powers the elevators and water pumps in many prewar buildings. It translates into additional outlays of approximately $5,000 per year.
Con Edison imposes extra tariffs on DC current customers. To alleviate some of the burden, Con Edison has set up a DC Conversion Incentive Program to help buildings defray extra costs and is offering assistance to those converting from DC to AC (alternating current). Unfortunately, none of the benefits being proffered will completely cover the high cost of switching from DC to AC. For some buildings, paying the extra $300-$400 charge per month for DC power may be the best option, temporarily.
According to The New York Times reporter Jay Romano in a recent article, Con Edison's financial assistance runs as high as $12,000, but only for buildings that applied for assistance before March 31, 2001. (The utility company has also asked the Public Service Commission to extend the deadline to March 31, 2003.) In addition, Con Edison is offering to supply equipment that is capable of running DC systems on AC power to those buildings applying for the incentive program.
To convert older systems to AC power entails major upgrades, which translate into major expenses. To begin with, new motors and wiring are necessary, as is the installation of the controller, which is the mechanism that controls the elevators' movement. In a remark by Tony Szabo of Rand Engineering from that same article by Mr. Romano, a complete overhaul of the elevators in a small building is estimated to cost $50,000 to $60,000. In a large building, it may be as much as $200,000 to $300,000.
A less expensive alternative would be to install a rectifier, a device that converts DC to AC, for about $10,000 to $20,000, depending upon the size of the building. Con Edison's Incentive Program would, then, effectively cover much of the cost.
The greatest challenge presented by this option is the availability of extra AC power in older buildings. In many older buildings - and it is estimated that some 4,400 buildings in Manhattan are affected - the load on the AC system is already at full capacity, which leaves the necessity of a major electrical upgrade to make available adequate power in this scenario. So once again, buildings are facing an upgrade costing, at the very least, tens of thousands of dollars.
For the past year, Midboro Management has been looking into the best options for each individual building we manage. For some buildings we will recommend full upgrades; for others we will suggest less costly options. But in the long run, all New York City buildings with DC current will be compelled to covert to AC power. Until then, we will continue to update our boards of directors, shareholders and apartment owners about the latest alternatives available.

You can contact Michael Wolfe, Midboro Management, 1926 Broadway #604, New York, NY 10023, 212-877-8500.

Web Site Production and Design By: