Waterside Generating Station
| Company type | Power station (decommissioned) |
|---|---|
| Industry | Electric power generation |
| Founded | 1901 |
| Founder | New York Edison Company |
| Defunct | 2005 |
| Fate | Decommissioned and sold; demolished and site rezoned for mixed-use development |
| Headquarters | Manhattan, New York City , United States |
Area served | Manhattan, Bronx, Queens, Westchester counties (historically) |
| Owner | Con Edison (until sale in 2005) |
Waterside Generating Station was a power station situated in Manhattan, New York City, inaugurated in 1901 as one of the pioneering U.S. facilities to produce electricity utilizing steam turbine technology. Developed by the New York Edison Company, it occupied a site in the Murray Hill area along First Avenue, between East 38th and 40th streets, directly beside the East River. The facility later functioned as a cogeneration plant, providing steam to the New York City steam system.
Con Edison decommissioned the station in 2005, subsequently selling it as part of the East River Repowering Project. This initiative expanded the East River Generating Station at East 14th Street to assume Waterside’s steam and electrical production. After demolition and environmental cleanup, the location was rezoned for mixed residential and commercial development but remained undeveloped as of 2023.
Inception and Early Operation
Before Waterside’s establishment, Manhattan’s electricity needs were fulfilled by several small, interconnected plants that were approaching their maximum output. The New York Edison Company sought to construct a large centralized facility capable of supplying the majority of electrical demand, relegating smaller stations primarily to substation roles. Initial plans took shape in the late 1890s following acquisition of waterfront land. In 1898, engineers John W. Lieb, John Van Vleck, and Arthur Williams conducted studies of European power plants and refined designs presented in 1900 under Thomas E. Murray’s direction.
Operations commenced at Waterside No. 1 in October 1901 between East 38th and 39th streets, producing three-phase alternating current at 6,600 volts and 25 cycles using a combination of reciprocating steam engines alongside five steam turbines—positioning it among the first U.S. plants to utilize steam turbines. Power was transmitted to substations where rotary converters transformed it into direct current suitable for Manhattan’s existing low-voltage distribution system.
Although initially constructed to meet projected demand through 1910, Waterside No. 1 reached its limit by 1905, necessitating expansion northward between East 39th and 40th streets with Waterside No. 2 beginning service in November 1906. Both units were interconnected electrically and mechanically; while No. 1 supplied power exclusively within Manhattan, No. 2 extended service to parts of the Bronx, Queens, and Westchester counties. By 1911, their combined rated output exceeded 297 MW.
The plant’s riverside position enabled coal deliveries via barges that offloaded fuel through conveyor belts and hoists into bunkers holding approximately two weeks’ supply; ash removal employed similar mechanisms for barge transport.
During the 1920s, expansions included construction of an office building, switch house, and frequency house (known as Waterside Tie Station) between East 40th and 41st streets. This facility housed frequency changers that converted power from the original 25-cycle system to the newer standard of 60-cycle alternating current.
In 1936, New York Edison rebranded as Consolidated Edison. By 1937, technological improvements allowed Waterside to operate as a cogeneration plant—distributing steam after turbine use—which significantly increased efficiency. By 1940, combined capacity had grown beyond 370 MW.
In May 1942, the development of the East River Drive highway between East 34th and 49th streets required Con Edison to invest $3.5 million in modifying coal and ash conveyor systems to accommodate the adjacent roadway infrastructure.
Smoke issues at the United Nations
During the development of the headquarters of the United Nations located on First Avenue between East 42nd and 48th streets, worries emerged regarding smoke and emissions from the Waterside plant potentially impacting the Secretariat Building. These concerns were brought forward by Secretary-General Trygve Lie. In August 1950, New York City Mayor William O'Dwyer appealed to President Harry S. Truman to authorize an increase in Con Edison's allocation of natural gas from the Transcontinental Gas Pipeline (Transco), aiming to switch Waterside’s fuel source from coal to cleaner natural gas. However, President Truman declined this request following a report submitted by Federal Power Commission chairman Mon C. Wallgren.
The Federal Power Commission acknowledged that while certain gases caused discomfort, they did not pose significant health risks. They recommended installing air conditioning "washers" to filter pollutants and proposed raising the plant’s smokestacks, which were lower than the Secretariat Building. Nonetheless, increasing stack height raised concerns about potential hazards to aircraft.
Con Edison planned upgrades in 1951 for Waterside No. 2, intending to introduce mechanical fly ash collectors ahead of existing electrostatic precipitators. However, procurement of this equipment was postponed by a year due to material shortages and prioritization of defense-related power projects by the Defense Electric Power Administration.
In November 1959, the United States Court of Appeals for the Third Circuit decided that the FPC could not prevent Con Edison from acquiring Texas natural gas transported through Transco to fuel two out of ten boilers. This ruling was later reversed by the Supreme Court of the United States in January 1961.
By 1963, Waterside operated on natural gas for approximately 60% of the year, with usage limited by pipeline capacity constraints delivering gas to New York City.
Late 20th century
On November 10, 1992, a rupture in a steam pipe at the Waterside power station triggered an explosion that resulted in one fatality and injured seven individuals, including five firefighters. Despite this incident, steam supply to Manhattan was maintained by rerouting from alternative plants during the outage. The Occupational Safety and Health Administration (OSHA) investigation attributed the explosion to a water hammer effect caused when steam entered pipes that had not been properly drained. Con Edison was subsequently fined $217,800 for breaches of worker safety regulations related to this event.
Decommissioning and sale
In 1999, Con Edison announced intentions to sell the Waterside site along with three adjacent properties as part of a broader strategy concerning its steam system and in line with a deregulation agreement with the New York Public Service Commission (PSC). To offset the reduction in capacity from this sale, Con Edison proposed the East River Repowering Project (ERRP), which involved installing new equipment at the East River Generating Station to boost output.
More than twenty bids were received; ultimately, a development consortium including Sheldon Solow and Fisher Brothers, supported by Morgan Stanley Dean Witter & Co., won. The transaction required PSC approval for demolition of existing plant facilities and expansion at East River, as well as rezoning by city authorities for mixed residential and commercial use.
While initial PSC approval was granted in 2001, further hearings were conducted following petitions from local officials and community organizations concerned about particulate matter emissions. In response, Con Edison reached an agreement in 2002 addressing these environmental issues. Final PSC authorization for the sale was obtained in 2004.
The ERRP was completed in April 2005 with new equipment commissioned at East River and Waterside subsequently decommissioned—making it New York City's oldest operating power station at that time. Property sales closed between March and May 2005, with demolition and environmental cleanup finalized by 2008.
Redevelopment
In 2008, the New York City Planning Commission together with the New York City Council authorized the rezoning of the Waterside location along with three additional former Con Edison properties situated along First Avenue.[1] These sites encompassed the old Kips Bay Generating Station between East 35th and 36th streets, a parking area between East 39th and 40th streets, and an office structure located between East 40th and 41st streets.[2]
The Kips Bay Generating Station parcel was sold by Solow and subsequently transformed, now featuring an elementary school that opened in 2013 alongside the residential towers known as the American Copper Buildings, which were completed in stages during 2017 and 2018.[3][4] The lot at 685 First Avenue, formerly a parking space, was redeveloped by Solow into a 43-story residential skyscraper designed by Richard Meier, which opened its doors in 2019.[5] Meier had contributed to master planning efforts for these former Con Edison properties starting in 2008, with revisions made in 2012.[6] Additionally, the pier of the former Waterside Generating Station along the East River was made accessible to the public in October 2016 as part of the expansion of the East River Greenway.[7]
Freedom Plaza
By 2023, the parcels east of First Avenue between East 38th and 41st streets—including the site of the former Waterside plant—remained undeveloped. After Sheldon Solow passed away in November 2020, ownership transferred to his son, Stefan Soloviev. This area is marked as "Freedom Plaza" on Google Maps. A temporary art exhibit titled Field of Light by Bruce Munro was installed there in December 2023 and remained through November 2024, serving to promote Soloviev’s proposed casino development.
In February 2024, Bjarke Ingels Group revealed a design for Freedom Plaza comprising two residential towers alongside two hotel towers each rising to 615 feet, connected by a cantilevered skybridge. The project envisions a hotel with 1,200 rooms, a casino, retail shops, dining establishments, a democracy museum, and a total of 1,325 apartments. Following the conclusion of Field of Light, the Soloviev Foundation announced plans for a new public artwork called Path of Liberty, scheduled for early 2025.
Moreover, OJB Landscape Architecture proposed a park spanning approximately 4.7 acres on the site, featuring expansive lawns and planting of around 350 trees. On June 27, 2025, developers submitted their application for a commercial casino license related to this project.