PRESS CONFERENCE ON UNITED NATIONS ENERGY WORKSHOP

Press Briefing

PRESS CONFERENCE ON UNITED NATIONS ENERGY WORKSHOP

As a two-day United Nations Workshop on Energy Efficiency, Global Competitiveness and Deregulation began today, representatives of three co-sponsors of the Workshop addressed correspondents at a Headquarters press conference: Joseph Connor, United Nations Under-Secretary-General for Management; David Barram, Administrator of the United States General Services Administration (GSA); and John Boyd, President and Chief Executive Officer, Con Edison Solutions.

Mr. Connor said the Energy Workshop, which brought together private sector groups working in collaboration with the United States Government and the United Nations, would address energy efficiency, clean energy, the merits and drawbacks of traditional energy, market regulation and “the growing interest in promoting deregulation”. The United Nations was committed to inspiring, developing and promoting policy instruments and standards for sustainable development for the production and delivery of energy in an environmentally responsible manner. It sought consensus on policies, action planning, resource allocation, data gathering and dissemination regarding energy conservation and environmental protection.

The United Nations also implemented those policies with regard to its own actions, Mr. Connor continued. It did that through efficient energy use and, when possible: the elimination of waste, the use of energy with minimal harm to the environment; the use of renewable energy, recycled or renewable products; the procurement of energy at the lowest possible cost; and the adoption of renewable energy sources. Fuel cells, solar power and geothermal energy were being considered for use at Headquarters, which was constructed 50 years ago, when energy costs were low and supply plentiful. By installing energy-efficient lighting equipment and improving operations and maintenance, electricity consumption had been reduced by 15 per cent since 1995. An integrated approach to energy-efficient renovations and operations required long-term planning and resources, and those were components of the long-term master capital plan, which would be presented for consideration by the General Assembly during the current calendar year.

Mr. Barram said the GSA would be working with the United Nations. He and Mr. Connor had today signed “a cooperative agreement between United Nations and GSA for both to work in partnership”. For GSA, the United Nations was both a customer and a partner. For example, the United Nations got its power through a contact that GSA put together. The GSA was going to host United Nations managers from around the world and show them new projects, such as grading light according to the number of people in a room.

John Boyd, President and Chief Executive Officer of ConEd Solutions, said his group focused on working in the competitive energy market that was just now beginning. Energy service providers and companies had been formed as a way to help businesses, agencies or countries navigate through the complexity of energy deregulation. Acting without knowledge in the field of energy could have serious consequences.

When a correspondent asked whether ConEd Solutions was planning to expand internationally, Mr. Boyd said it must get to the point where it could design

Energy Press Conference - 2 - 1 February 2000

business models that delivered value to customers, and have its customers understand why they should be deregulating their energy supply. That point was only one or two years away. Then it would be time to start thinking of the larger domestic market, and then going international. For now, it was unclear that energy deregulation was working, and expansion was appropriate. Much of the industry was still regulated, and “you can’t be regulated and competitive”, he said.

Asked whether the United Nations master capital plan discussed paper reduction, Mr. Connor said the Organization was now recycling paper and also reducing the amount of paper it generated. Headquarters electronically dispatched almost all its communications. Still, legislative processes required documentation. The capital master plan would have a high price, but the resulting savings would offset that cost.

When Mr. Barram was asked for further details on the partnership between GSA and the United Nations, he said the nature of the partnership would depend on what the United Nations wanted to do and what ideas GSA had. The relationship, which was starting today, was organic and did not have limits placed on it. Either party could end the relationship. “It was a formalization of a good sensible relationship”.

Was the United Nations promoting energy deregulation, which some Member States might consider controversial? a correspondent asked. Mr. Connor answered that the United Nations was observing the trend towards deregulation. It had an obligation to put the issue on the table and allow Member States to respond when it was their turn, through conferences and other means. But, in addition to being a distributor of information, the United Nations was an energy user. The Organization had “more than a passive interest”, but it would proceed at a cautious pace.

Were there other areas of the global economy where the United Nations would be promoting deregulation? the same correspondent asked. Mr. Connor said the correspondent seemed to be jumping to the conclusion that the United Nations was promoting deregulation. Instead, the United Nations was focusing on opportunities to better serve its Member States and if that involved dealing in a deregulating community, that was the option it would select. The United Nations had been collaborating with the private sector and non-governmental organizations for years. That, too, was controversial to some.

Asked how customers should choose between companies, Mr. Boyd said the first step was getting educated and informed, and meeting with representatives to determine their capabilities and what strategy they would design for the Organization. They should be thought of as potential partners who were going to be brought into an enterprise and enable it to take advantage of opportunities.

Another correspondent asked if Con Edison was going to divest all its energy generation capacities. Mr. Boyd said that the company was holding onto its nuclear generation, and was considering building a steam generation plant that would also have some electrical capability.

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