NYCHA Chairman Rhea Discusses Heat & Energy Costs

Errol Louis: And one big area that you identify in the report as well is that cost of energy, and I was very surprised to see how much it costs to... and this is just what? This is fuel costs that have shot your expenses out of control?

John B Rhea, NYCHA Chairman: Yes, it's principally, you know, heating oil cost, but there's electric cost as well. And we spend roughly, a little less than $600 million a year on energy expenses in public housing across the city, across the five boroughs. And so we are looking at massive ways that we can retrofit our buildings, with higher efficiency, boilers, instantaneous hot water heaters, insuring that the building envelopes are secure, and that energy isn't creeping out and being lost. That alone, will take billions of dollars to make those investments, but those investments have a huge operating payback in terms of our ongoing annual operating expenses and energy costs.

Errol Louis: Do the energy costs get passed on to the tenants?

John B Rhea, NYCHA Chairman: To a certain extent yes, although not on a unit-by-unit basis within a public housing resident's rent is some component of quote-un-quote their utility cost. The problem is individual apartments aren't metered, so it's not as if Errol Louis pays more than John Rhea than there's a reflection in our rent payments.

New York City Housing Authority Chairman John B Rhea discusses the costs associated with heating developments as well as other energy costs. For more information on NYCHA Heat and Energy go to NYCHA Environment http://www.nyc.gov/html/nycha/html/news/nycha_environmental.shtml

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