BUSINESS OVERVIEW renovation project work, data communications, security system installation, and maintenance services. EMCOR, by virtue of its construction and facilities services expertise, is involved with private finance initiatives (“PFIs”) sponsored by the British government. The PFIs, which involve governmental bodies responsible, among other things, for the national healthcare system, social security, air traffic control, schools, and hospitals, seek to transfer ownership and management of United Kingdom government facilities, including office buildings and institutional buildings, to groups of financial institutions, consulting service organizations, and others, which competitively bid for PFI contracts. EMCOR has been awarded several contracts by such groups to provide mechanical and electrical services, grounds maintenance and other ancillary services for periods typically ranging from 5 to 35 years at buildings which were formerly owned and managed by government bodies and privatized as part of the PFI program. EMCOR has built on its United Kingdom experience to market its facilities services business to international markets and currently provides facilities services through a joint venture to several companies in South Africa. (2) return to service of a 2,200 megawatt nuclear generating station in Pickering, Ontario; and (3) mechanical installation at a new 1,048 megawatt natural gas-fired combined cycle power plant in McKittrick, California. In addition, EMCOR continues to support its clients on the demand side of the energy market by constructing new cogeneration and central power plants, as well as planning and implementing energy management programs. In 1997, EMCOR established a subsidiary to expand its facilities services operations in North America patterned on its United Kingdom business. This unit has built on existing mechanical and electrical services capabilities, facilities services activities at existing facilities services subsidiaries, and EMCOR’s existing client relationships in order to expand the scope of services currently offered and to develop packages of services for customers on a regional, national and global basis. The facilities services operations have also used acquisitions to expand services offered. In addition, management also has targeted growth in facilities services opportunities arising from the deregulation of the electric utility industry, deregulation and expansion of the telecommunications industry and the REIT-driven consolidation of the commercial real estate industry. In April 2000, EMCOR and CB Richard Ellis Inc., a nationwide real estate management company, created a limited liability company in which EMCOR has a majority interest. Facilities services include the operation, maintenance and supervision of building systems including heating, air conditioning, plumbing, lighting, ventilating, electrical control and energy management systems. The deregulation of, and increased competition in, the utility industry, along with government mandates calling for reduced energy consumption by government entities, have led to renewed focus on energy costs and conservation measures. These measures typically include energy assessments and engineering studies, retrofit construction to implement energy savings measures, and the long- term operation and maintenance of energy savings measures to ensure continued performance. Various subsidiaries of EMCOR participate in energy savings programs, and EMCOR believes it has the ability to be a single source provider of construction and facilities services required for energy assessment and design, installation, and operations and maintenance of energy savings measures. EMCOR has also responded to opportunities in the rapidly changing electric power generation market. Some of the projects awarded during 2001 included: (1) fast-track electrical construction of eleven 40 megawatt peaking service turbine generators at seven locations  in New York City and Long Island for the New York Power Authority;  EMCOR has also been successful in obtaining contract awards in the public infrastructure markets in 2001. Some examples of major awards in this area include: (1) total mechanical installation for the 40,000 seat open-air stadium for the University of Connecticut in Hartford; (2) expansion of the central chiller plant at the Miami, Florida International Airport which includes the construction of a 59,000 square foot 10-story facility that will add 16,390 tons of cooling capacity; (3) electrical work for the north runway improvements at Miami International Airport; (4) mechanical installation at a new  11-story, 300,000 square foot research center for Harvard Medical School in Boston, Massachusetts; (5) electrical installation at a 30 million gallon wastewater treatment facility in Detroit, Michigan; and (6) electrical installation on the “T-Rex” light rail and highway expansion project on Interstates 25 and 225 in Denver, Colorado. The deregulation and expansion of the telecommunications industry have led to a rapid expansion of installed infrastructure, including wireless communication systems and long distance networks, much of which has been built by companies that do not have existing maintenance operations and which seek to contract out such services. EMCOR has provided construction services for the infrastructure of telecommunications companies and facilities services to support their operations. In this industry, EMCOR has installed and maintained equipment for suppliers such as Lucent, Nortel, and Siemens, and has provided construction and maintenance services to local service providers and to users who maintain their own systems. EMCOR offers facilities services to customers on single-task and multi-task basis depending on a customer’s needs, under either  short-term or multi-year agreements. Services include mobile services dispatched from EMCOR’s locations, as well as site-based operations and maintenance service which often require that its employees  be permanently assigned to customer premises twenty-four  hours per day. EMCOR believes mechanical and electrical construction services and facilities services activities are complementary, permitting it to offer customers a comprehensive package of services. The ability to offer both construction and facilities services should enhance EMCOR’s competitive position with customers. Furthermore, EMCOR’s facilities services operations tend to be less cyclical than its construction operations because facilities services are more responsive to the needs of an industry’s operations requirements rather than its construction requirements.