Another issue addressed by the Gazette is the future disposition of up to 70 mw of hydropower relinquished, for one reason or another, by specific businesses. The power, from one of the two large blocks of Niagara hydropower known as Replacement Power, has been sold by NYPA into the market to support Energy Cost Saving Benefits (ECSB) for customers of several other economic development programs, as required by a 2005 state law.
In 2006, the state law was amended to extend the ECSB from its scheduled end on Dec. 31, 2006, until June 30, 2007. However, that law also provided for the 70 mw of Replacement Power to be made available again for allocations to Western New York businesses, after Dec. 31, 2006. The region will NOT lose this power after June 30, 2007, unless the governor and the state Legislature act to change the law to use the power in some other manner.

The various laws governing allocations of hydropower and other economic power sources for businesses can be confusing, but we all want to maximize the benefits of Niagara hydropower for Western New York and strive to work, within the law, to achieve that goal. NYPA is working with the Buffalo Niagara Enterprise, the Niagara County Center for Economic Development and National Grid in a vigorous campaign to make existing and potential employers aware of the hydropower available for new allocations.

The New York Power Authority fully recognizes the importance of the Niagara project to the region’s economy. The good news is that the Federal Energy Regulatory Commission on March 15 approved a new 50-year license for the project following balanced settlement agreements with key stakeholders to preserve the low-cost power for the area’s economy, while adding to our regional contributions, for financial, environmental, recreational and other benefits.