2003 on a weather-normalized basis. The steam system is a vital part of New York City’s energy infrastructure and critical to its economic well-being. Many major commercial buildings use steam for space heating and to produce hot water and cool air. The steam system also creates significant environmental benefits since it displaces hundreds of individ- ual boiler plants that would generate higher emissions and cause increased oil-delivery truck traffic. In the summer, the system supplies the equivalent of 400 megawatts of air conditioning load, an amount equal to that produced by a large power plant. Our steam customers include several large facilities, including Rockefeller Center, the Waldorf-Astoria Hotel, Pace University, the New York University Medical Center, Lincoln Center, and the United Nations headquarters. More important, the majority of all new commercial buildings in midtown and downtown Manhattan choose to use steam for heating and hot water. Con Edison’ steam unit in 2003 was awarded the Intern ational  District Energy Association’ (IDEA) District Energy Space GOLD A ward for expanding our system. We also celebrated the conversion of the Seward Park Housing project from a local oil burning system to a central steam system. The conversion will result in improved air quality through the annual re duction of approximately 60 tons of air pollutants and 13,500 tons of carbon dioxide. Work also continues on our East River power plant in Manhattan, which will enhance the reliability of Con Edison’s steam supply by pr oviding three million pounds of steam per hour and additional electric capacity . Orange and Rockland Utilities (O&R) provides electric and gas service to a growing region. Orange County boasts the lowest unemployment rate of any major metropolitan ar ea in the state, and over the past year , median house values increased 21.3 percent. Rockland County has also seen rising home sales and values, and its strong Last year, O&R invested more than $46 million in its electric transmission and distribution systems. These invest- ments will help ensure system reliability and security. Major system upgrades in Rockland County included the comple- tion of a critical distribution substation During the 2003-2004 heating season, O&R hit all-time winter peak distribution loads for both electricity and gas, and the electric system recorded an all- time peak in June 2003. The growth in the company’s service territory did not diminish O&R’s outstanding record of reliability; in the summer of 2003, the company set a new record for the fewest customer interruptions on its system. economic growth is based in a diverse mix of private businesses and public companies. Inc. magazine recently ranked Rockland County as the fourth- best “small metro area” for doing business in the country. On a weather- normalized basis, O&R’s electric delivery volumes rose 2.5 percent in 2003, and total firm gas delivery volumes grew 3.0 percent. Orange and Rockland Utilities Con Edison Annual Report 2003 9 Page 8, Left: Rafael E. Balcacer, outside plant mechanic, welding steam pipe. Center: Demand for gas is expected to increase as it emerges as a popular form of energy. Right: Operating supervisors Clarence Blanton, Jr., and Antonio Blackmon review plans at a construction site. Page 9, Left: Over the next decade, customers will require the delivery of more energy than they do today. Center: Shaun McCall, mechanic A, and Hilton Riley, mechanic B, work on the gas system. Right: Albert J. Perini, electrician first class, at an O&R substation.