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in Manhattan’s Chelsea neighborhood. Chelsea grew at a very rapid pace in the late 1990s, fueled by new residential buildings and commercial developments that house new media companies, art galleries, and studios. In 2003, we began construction on a new $140 million substation on West 30th Street. This summer, the substation will begin to serve a portion of the neighborhood and alleviate high loads at adjacent substations, thus enhancing reliability and providing capacity for future growth. The new substation we are constructing in Valhalla, in Westchester County, will perform a similar function for that growing area. 

The foundation for the restoration and rebuilding of Lower Manhattan has been laid, with plans underway for the Freedom Tower, a 1,776-foot-tall structure that will reinvigorate New York City’s skyline; a new $2 billion transportation hub that will serve 250,000 commuters and visitors each day; and numerous residential develop- ments. The new World Trade Center substation we are building is designed to meet the energy needs of these vital projects, and of existing homes and businesses in Lower Manhattan. 

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In May 2003, Con Edison opened its new Cable and Splice Center for Excellence at our Va Nest facility in the Bronx. Developed in conjunction with the Electric Power Research Institute (EPRI), the center is a state- of-the-art laboratory for the research and testing of electric distribution cables. It includes a diagnostic testing lab for reviewing failed cable, a high- voltage test center, a 70-foot conduit and manhole system, and an 11-foot “weatherized” manhole that can simulate conditions under a New York City street. By acting as a magnet for multidisciplinary expertise from utilities, universities, and manufactur- ers, the center will allow us to maintain and replace cable mor e effectively. 

## Accomplishments in Gas Operations 

Con Edison of New Yo rk distributes natural gas to more than 1.1 million customers, making it one of the largest gas distribution companies in the United States. The company's gas system contains more than 4,200 miles of mains and nearly 400,000 gas service pipes. Firm gas delivery volumes in 2003 rose 3.6 percent on a weather- normalized basis over the previous year. 

## Center for Excellence 

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Demand is expected to increase as natural gas emerges as a more popu- lar and strategic component of the nation’s energy supply. New gener- ation facilities planned for the New York City area will require significant sup- plies of natural gas. We are making substantial investments to ensure reliable gas delivery. 

In 2003, work was completed to connect our Hunts Point Station in the Bronx to the Iroquois Pipeline. In addition, as part of a long-term plan to improve the system, Con Edison replaced approximately 150,000 feet of older gas mains. 

Con Edison has long been recognized as an industry leader in “no-dig” tech- nologies. Our leadership continued in 2003 as our crews began deploying Starline, a process that allows us to insert new pipe inside existing pipe and realize significant savings. 

## Accomplishments in Steam Operations 

Con Edison’s steam system, which serves more than 1,800 customers and comprises 105 miles of mains and service lines, is the largest district steam system in the world. Steam delivery volumes rose 0.9 percent in 

