Last year, even though the New York Power Authority had a
surplus of $309 million, over 75 percent of which is directly attributable to
the Niagara Power Project here in Western New York, only 14 percent of the
economic benefit from the Niagara Power project currently remains in the WNY
region. The above named politicians are moving to change that.
It’s good to know that in spite of Senator
Antoine Thompson casting the deciding vote to allow NYPA to sweep the profits, there are other politicians with the best
interest of their constituents in mind.
NYPA sees profits when companies receiving low-cost power use
substantially less than they are allocated because they are not running at
capacity 24/7. This unused power is retained by the Power Authority and
resold at profit of about $63 million annually. Through this legislation, the
Replacement and Expansion Power revenue would be reinvested in initiatives in
Erie, Niagara and Chautauqua Counties. This funding could help pay for
bonds which would be sold to finance roughly one-half billion dollars in
immediate sorely needed capital improvements in the region.
We need to be plugged into that profit. Anything else is sheer robbery.
Western New York power profits could be used for construction,
engineering, architecture and related projects for the development of the
waterfront in Niagara, Erie and Chautauqua Counties; the Erie Canal Harbor
Development Corporation; the Olmsted Parks system; regional cultural
institutions in the three counties; Niagara Falls redevelopment initiatives and
the Buffalo Niagara Medical Campus. Funds would be allocated in
proportion to the existing ratio for the allocation of replacement and
expansion power between facilities in the three counties.
Late yesterday, Congressmembers Brian Higgins, Chris Lee, Steve
Israel, Carolyn Maloney and Eric Massa introduced a bill (HR2133) in the House
of Representatives that would require the New York Power Authority to direct
into a special fund profits from the sale of unused energy that was allocated
for Western New York industries for Western New York waterfront, cultural, park
and economic development projects.
“It is our natural resource that fuels the Niagara Power Project
and our community needs and deserves a greater share of the benefits from the
plant,” said Congressman Higgins, a member of the Great Lakes Caucus whose
district includes Erie and Chautauqua Counties. “I am thankful to my
colleagues in Congress who join me in this fight for and economic justice and
reinvestment in this great region.”
The federal legislation effectively amends the 1957 Niagara
Redevelopment Act to compel the authority to keep more of the benefits of
Niagara Hydropower in Western New York. The actions proposed in the bill
can be enacted merely with action by the Authority’s Board of Trustees, but
rather than wait for the Authority to act, the Congressmemebers took action
based on the urgent economic need in Upstate New York. Currently the
profits from the sale of this electricity go back to the Authority’s general
fund.
Under the bill a Regional Development Corporation would be
formed to oversee distribution of the funds. Members of the six-person board
would include one appointee each of the: Niagara County Legislature, Erie
County Executive, Chautauqua County Executive, New York Governor, Buffalo
Mayor, Mayor of Niagara Falls.