NY co-op goes cogeneration despite unhelpful utility

A 15-building housing cooperative in New York (Penn Station South) expects to halve its energy costs by installing a 5.85 MW natural gas-fired cogeneration unit costing $6.5 million. The project anticipates $1.5 million in annual savings after the system goes on line in 1986. Consolidated Edison's policy of discouraging cogeneration in the city did not deter the project planners. By providing all the housing projects's electricity and thermal needs, the unit will have a four-year payback. Penn Station South plans to burn a mixture of oil and gas, but the system can burn either fuel alone as well as blended.