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More NYPA Profits Stay in Buffalo Niagara

Tuesday, August 31, 2010

 by James Fink

Local leaders are applauding the decision by Gov. David Paterson to sign a bill that should give regional economic development efforts a major boost.

Paterson has signed into a law a decree that mandates the New York Power Authority use the proceeds from the sale of unallocated megawatts of low-cost hydropower to help finance the Western New York Economic Development Fund. NYPA annually allocates 695 megawatts of low-cost hydropower to local businesses. Any unsold Replacement and Expansion Power can be sold on the open market. Previously the money went to NYPA’s general fund, but now those funds must allocated to aid local development projects.

Early estimates peg the annual funds in the $10 million range.

The state law was sponsored by Assemblyman Dennis Gabryszak, D-Cheektowaga, and was considered a top economic development priority by the Buffalo Niagara Partnership.

“This is a huge victory,” said Andrew Rudnick, Buffalo Niagara Partnership president and chief executive officer. “This is a new incentive for economic development that we didn’t have 24 hours ago.”

Rep. Brian Higgins, who has pushed for more NYPA funding for area projects and sponsored similar federal legislation, agrees.

“The Niagara Power Project was intended to provide a direct benefit to this community,” Higgins said.

The Replacement and Expansion Power programs require low-cost hydropower be distributed to companies within a 30 mile radius of the Niagara Power Project in Lewiston. That covers an area stretching from Niagara County to southern Erie County and into Genesee County. A coalition of business leaders had pressed Paterson to approve the the measure.

In 2008, NYPA had a $309 million with more than 75 percent directly attributable to the power project. Yet, only 14 percent of the economic benefit remained in the region, Higgins noted.

“Today, with this legislation, we continue to take back what is naturally and rightfully ours,” Higgins said. “Our success is staking this claim means millions of dollars once diverted to other parts of the state and country will again be flowing back into Western New York where it belongs.”

Rudnick said the funds will be distributed by a review committee made of members from the Buffalo Niagara Partnership, Buffalo Niagara Enterprise, Empire State Development Corp., Erie County Industrial Development Agency and Niagara County Industrial Development Agency.

“This (new money) becomes larger than life, especially in the absence of other (economic development) tools,” Rudnick said.