Niagara Town Board to vote on proposed settlement with NYPA

by Ralph Schwarz
Niagara Wheatfield Tribune, Nov. 11, 2004

The town of Niagara Town Board will vote on whether to accept the proposed settlement with the New York Power Authority at its Nov. 16 board meeting.

If the board approves the settlement, the town will receive an annual payment of $1.04 million over the next 50 years for its endorsement of the re-licensing of the NYPA’s Niagara Project.

“I’m going to recommend to the board that we accept this,” said Town Supervisor Steven Richards.

As one of the host communities for the NYPA, under the settlement the town will receive annual payments of $650,000 from the Host Communities Fund and $390,000 from the Recreation Tourism Fund, starting in 2008. In addition, the town will also receive a one-time advance payment of $1.04 million within the next two years.

The settlement, which was reached on Oct. 22 after 10 years of negotiations between the Niagara Power Coalition and the NYPA, covers Niagara County, Niagara Falls, Lewiston, the town of Niagara and the Niagara Falls, Lewiston Porter and Niagara Wheatfield school districts. The municipalities and the schools will spilt the funds by a 60-40 ratio, with the town of Niagara to receive 13 percent of the $1 billion package.

No Obligation

Richards, who currently ranks as the longest-serving elected official on the Niagara Power Coalition with 10 years, said that the NYPA did not have any obligations under the re-licensing regulations to offer a settlement to the host communities.

“In my 10 years on that board, I have always looked to the Power Authority as a partner for the future of this area,” he said. “And by its generosity, [the NYPA] proved to the entire Western New York population that it want to be part of this future. [The NYPA] is doing its part to ensure that we all have a bright future.

“The host communities never received any compensation for the next 50 years because the Power Authority did not have to do it. This time, its representatives see it like most of us see it, that they have to do their part, just like we have to do our part, to better the future of this area. If we can lower the taxes with the money we receive, we can improve the quality of life and enhance our community. It all brings everything together where you can attract more people to your town, attract more people to your town without offsetting the costs, including quality of life.”

Good Neighbor

Richards pointed out that the NYPA has always been a good neighbor to the town of Niagara.

“The Power Authority donated $500,000 to the town park, electric cars, equipment for our police department -- it has always been a good neighbor to the town,” he said. “The generosity shows that their officials are just as concerned for the future of this area than we are. And if the politicians use this money wisely, they can turn this area around.”

According to Richards, the settlement will have no impact on the rates for electrical power.

“We did not want to do anything that would affect the rates,” he said. “So this $1 billion package will have no negative impact on the electric bill.”