WNY delegation to return low–cost power to WNY

Niagara Wheatfield Tribune, June 15, 2006
Lewiston Porter Sentinel, June 17, 2006

Assemblyman Sam Hoyt, D-144th District, and Sen. George Maziarz, R-62nd District, Newfane, announced that they, along with other members of the Western New York delegation, had introduced legislation that would permanently return 70 megawatts of low-cost hydropower to Western New York. The legislation is targeted to stimulate new jobs and economic development in Erie and Niagara counties.

“This bill will continue a program that has been in place since 1957, to provide economically priced electricity to Western New York businesses,” Maziarz said. “A law passed last year diverted this needed electric power to other parts of the state. We are returning it to where it is supposed to be.”

The 2005 law took 70 megawatts of Western New York “replacement power,” so called because it replaced generation capacity lost to the region when the Schoellkopf hydroelectric plant was destroyed by a rock slide in 1956, and redirected to a new statewide program. Losing the full amount of “replacement power” meant that businesses in Western New York, which relied on the low-cost power, were in competition for electric power with industries throughout the state.

Hoyt said, “Currently, there is less than 20 megawatts of hydropower available for Western New York business and as of today, the New York Power Authority has nearly 60 megawatts worth of applications for power under the expansion and replacement power programs, and that’s not even counting applications that may still be submitted during the second half of 2006. It is essential for local business that this power be protected and made available for their use.”

“This is some of the cheapest hydropower in the nation and it is generated right here in our own back yard. It needs to stay in our community and be used for economic development, job creation, expansion and retention. Retaining the full amount of the replacement power is a vital part of our push to keep jobs here,” Hoyt continued. “This low-cost power is a valuable resource to existing companies in Erie and Niagara counties and should be used to attract and retain business.”

Kelly A. Brannen, managing director, Niacet Corporation and co-chair of Power for Economic Prosperity, said, “Despite the global turbulence impacting the manufacturing sector, manufacturing nonetheless remains the economic lifeline of the region. We need to do everything possible to maintain the manufacturing jobs we currently have, and that means creating opportunities for even more local industries to get access to this low-cost power.”

“We applaud Assemblyman Hoyt and Senator Maziarz as well as the entire state delegation for recognizing the importance of what is rightfully a resource in Western New York and should stay in Western New York,” said Richard Lyons, vice president of finance for Luvaa Buffalo Inc.

Electric power rates in New York are among the highest in the country, and a prime reason why New York businesses are less competitive than their counterparts elsewhere in the United States. It is economically vital to keep the full 70 megawatts of discounted electricity available for Western New York, where it has been for nearly 50 years.

Maziarz elaborated, “Qualifying Western New York businesses will have an opportunity to apply for the lost ‘replacement power’ after Jan. 1, 2007, but if the 70 megawatts are not used immediately, the power will be loaned out to other portions of the state. The proposed legislation would return power to Western New York permanently to ensure its availability for growing businesses and industries.”

“We are committed to doing all that we can to help the economy of Buffalo and the entire Western New York region to grow,” Hoyt concluded.