Legislation signed by Gov. David Paterson on Tuesday will ensure that between $25 million and $40 million in New York Power Authority profits will be reinvested into Western New York.
The new law will require profits generated at NYPA’s Niagara Power Project to be handed back to the local community with the creation of the Western New York Economic Development Fund.
The measure was sponsored by state Sen. George Maziarz, R-Newfane, and Assemblywoman Francine DelMonte, D-Lewiston,
Maziarz who has been a longtime critic of the Power Authority said the law will create new opportunities and is a “victory” in the region’s ongoing battle with NYPA.
“This is about creating economic development opportunities for Western New York,” Maziarz said. “Our region is still realizing the lasting effects of the economic downturn. The signing of this legislation will mark a new era in job opportunities for the people of this region.”
With the creation of the fund, millions of dollars in allocated, but unused hydropower will now remain within a 30-mile radius of the Niagara Power Project to fund economic development projects within Western New York.
“The benefits of low-cost power should stay right here in Western New York and assist the people and businesses it was intended to help,” DelMonte said. “Power designated for our region should stay here, regardless if it was sent to businesses as low-cost replacement power or sold on the open market by NYPA if that power was unused. Those profits should stay here.”
Under current law, businesses that are located within 30 miles of the Niagara Power Project receive 250 megawatts of expansion power and 455 megawatts of replacement power. The New York Power Authority is authorized to sell at market-value any unused power and keep those profits.
In 2008, NYPA had a surplus of $309 million, of which 75 percent could be attributed to the Niagara Power Project. In 2009, in what Maziarz called one of NYPA’s “most heinous actions,” a “sweep” of the Power Authority gave $550 million in NYPA proceeds to alleviate the state’s multi-billion dollar budget shortfall.
“Nobody has been more critical of the policies and procedures of the Power Authority than I have,” Maziarz said. “I’m sure they are not very happy that the governor signed this bill into law, because it forces them to do something that they have been unwilling to do — acknowledge the people of our region who are responsible for NYPA’s success at the Niagara Power Project.”
New York Power Authority President Richard M. Kessel could not confirm how much money would be handed back to local businesses, but did offer his support of returning power back to Western New York
“I have always supported the concept of returning unallocated and unused megawatts to Western New York to spur economic development,” Kessel said. “I look forward to working with local officials and business groups to make sure that this process is done in an equitable and non-political fashion.”
Contact reporter Nick Mattera at 282-2311, ext. 2251.
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