Northwell Health wins low-cost power for 4 facilities on Long Island

Northwell Health has been awarded more low-cost electricity from the state in return for spending $396 million on improvements to four of its hospitals and medical offices on Long Island. 

The largest project, valued at $395 million by the state, was the construction of a surgical pavilion at North Shore University Hospital in Manhasset. The 288,000-square-foot building, called the Petrocelli Surgical Pavilion, opened last year and offers cardiac and organ transplant services, Northwell executives said.

Northwell received an additional power allocation of 746 kilowatts for the North Shore pavilion in return for promising to retain an additional 206 jobs. The new award brings the total amount of power received by the hospital’s Manhasset location to 3,806 kilowatts for 8,011 jobs.

One thousand kilowatts is equal to one megawatt, which can power about 1,000 homes.

“We take the low-cost power, and we use the savings to reinvest in our properties, to make them more energy efficient,” said Charles L. Cutchall, chief engineering officer and vice president of infrastructure at Northwell. “As we grow our footprint within the community, we’re trying to lessen the impact of our business on the people we serve by reducing pollution.”

The North Shore pavilion was among four Northwell facilities to win low-cost electricity from the state Power Authority in the latest round of awards for the ReCharge NY program.

The 12-year-old program offers power for seven years in return for pledges to retain and create jobs as well as make investments in facilities. Some of the electricity is generated by state-owned dams near upstate Niagara Falls and along the St. Lawrence River.

Northwell’s other power allocations went to North Shore’s internal medicine, OB-GYN and endocrinology office in Great Neck, Huntington Hospital’s cancer institute in Greenlawn and South Shore University Hospital’s medical imaging and radiology office in Bay Shore.

Northwell, the largest private-sector employer in the state, is receiving a total of 11,894 kilowatts under the ReCharge program for about 20 locations in Nassau and Suffolk counties. In return, it has pledged to maintain 33,246 jobs, according to power authority records. The health system's total employment is 87,000 between operations on Long Island, in New York City and the city's northern suburbs.

More than 200 employers on Long Island receive ReCharge allocations — and Northwell gets the most, the records show.

“Continued operation of hospital systems like [Northwell] is critical to the health and well-being of all New Yorkers, and NYPA is proud to have a role in supporting the health care institutions our communities need,” authority CEO Justin E. Driscoll told Newsday, referring to Northwell, NYU Winthrop Hospital and others that receive low-cost electricity.

Besides Northwell, the authority’s board recently approved power allocations for drugmaker Allegiant Health in Deer Park, chocolate manufacturer Evolved Chocolate in Hauppauge and S.K.A. Machining Inc. in Ronkonkoma, which makes screws and other metal parts.

Allegiant, which sells nutritional supplements and over-the-counter medicines, received 546 kilowatts to support a $4.1 million plan to purchase manufacturing equipment. The company plans to add 20 people to its workforce of 156, authority records show.

By James T. Madore

james.madore@newsday.comJamesTMadore

James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.