New York Governor Spitzer Approves Contracts For Sale Of Low-Cost Niagara Hydropower

August 20, 2007 -- New York Governor Eliot Spitzer announced today his approval of low-cost hydropower contracts with Western New York municipal entities, the Tuscarora Nation, and Niagara University, stemming from recent settlement agreements for the re-licensing of the New York Power Authority’s (NYPA) Niagara Power Project.

“The contracts for the sale of hydropower promise hundreds of millions of dollars in savings for local governments and school districts in Niagara County,” said Governor Spitzer. “These agreements will help fuel the local economy and support the community in years to come.”

The new power contracts, totaling 29 megawatts, are with the seven municipal members of the Niagara Power Coalition, which include: Niagara County, the City of Niagara Falls, the Niagara Falls School District; the Niagara Wheatfield School District, the Lewiston-Porter School District; and the towns of Niagara and Lewiston. The Tuscarora Nation and Niagara University account for the balance of the assigned power under settlement agreements.

The Niagara Project, located in Lewiston, is the largest of 18 generating facilities of the New York Power Authority, and the single largest source of electricity in New York State. The project's original operating license was issued by the federal government in January 1958.

In March of this year, the facility was issued a new license for an additional 50 years by the Federal Energy Regulatory Commission, following a multiyear re-licensing process involving key stakeholders in Western New York. The new, low-cost hydroelectric contracts with the host communities and other re-licensing partners are provided for under settlement agreements supporting the project's re-licensing. They will yield substantial benefits for the region.

Frank S. McCullough, Jr., NYPA Chairman said: “We’re looking forward to carrying out these contracts to help our partners in the Niagara Project’s re-licensing put the low-cost power to the best possible use on behalf of the people they serve. At today’s wholesale electricity prices, the annual savings from the hydropower equals hundreds of thousands of dollars for each assigned megawatt. These contracts approved by Governor Spitzer are going to make a big difference for the recipients.”

Roger B. Kelley, NYPA President and Chief Executive Officer said: “These contracts were made possible by our completion last December of a nearly $300 million upgrade of the Niagara Project to maximize its operating efficiency, allowing it to produce 32 megawatts of additional power from the same amount of water,” said. “The enhancements were part of our responsible long-term stewardship of this tremendous generating facility, matching the conscientious approach that we took for the Project’s re-licensing.”

Senator George Maziarz said: “Historically, the Niagara Region has not enjoyed the access to low cost power we deserve from having the Niagara Power Project in our backyard. Indeed, for too long all of Western New York has suffered from a lack of economic growth. Now that affordable hydropower will begin to be available in our communities, however, I think we can call this what it is -- a step in the right direction. We’ll need to continue to find ways to make the most of our resources so we can have a greater say over our region’s future.”

Assemblywoman Francine DelMonte said: “The negotiated agreement approved by Governor Spitzer offers recipient communities a tremendous opportunity to generate cost savings on energy bills while creating new economic development initiatives. Used wisely, each of the entities is in a unique position to apply re-licensing funds to stress energy conservation in tandem with energy savings to yield long term benefits.”

Senator Antoine M. Thompson said: “The availability of low-cost power is critical to improving the economic conditions of the City of Niagara Falls. This is a bold step forward.”

The power contracts approved by the Governor expire in September 2025, matching current Niagara contracts with community-owned electric systems and other federally approved allocations.

Source: New York Governor

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