NEWS

NYPA Helps to Create 30 New Jobs With Low-Cost Hydropower Allocations

Contact:
Paul DeMichele
(914) 390-8186
paul.demichele@nypa.gov


June 28, 2012

FOR IMMEDIATE RELEASE

WHITE PLAINS—The New York Power Authority (NYPA) Trustees on Tuesday approved low-cost hydropower allocations to municipal electric systems in the City of Salamanca and Village of Skaneateles in support of the expansions of two companies in those municipalities. The allocations, under NYPA’s Municipal and Rural Electric Cooperative Economic Development Program, are expected to result in 30 new jobs and will help to protect nearly 1,075 existing jobs.

The Power Authority board allocated 110 kilowatts (kw) of hydropower to Salamanca Board of Public Utilities, on behalf of the Seneca Allegany Casino and Hotel, for a $53 million expansion, which will result in an additional 209 resort style rooms and suites.

The NYPA board also allocated 100 kw of hydropower to the Skaneateles Municipal Electric System, on behalf of the Skaneateles Recreational Charitable Trust, to assist them in a $4.9 million expansion, which includes a second ice rink, new basketball courts, expanded fitness areas and additional community rooms.

“The additional amounts of hydropower for Salamanca and Skaneateles will help underpin capital investments by enterprises in those areas and support economic development,” said Gil C. Quiniones, NYPA president and chief executive officer. “This is in keeping with the priorities of Governor Cuomo for harnessing the state’s resources—in this case, low-cost hydropower—for partnering with businesses in support of their competitive operations and expansions.”

The Municipal and Rural Electric Cooperative Economic Development Program makes available 54,000 kw of hydropower for the 51 municipal and cooperatives systems around the state on behalf of qualifying businesses. That amount of power is part of a larger block of nearly 765,000 kw that the community-owned electric systems receive from the Niagara project as preference customers under federal law. With Tuesday’s action, 21,655 kw are still available for allocation for those systems under the economic development program.

In 2008, the minimum allocations allowed under the program were lowered to 100 kw, from 200 kw. The program was also expanded to allow eligibility for businesses other than manufacturers. Enterprises engaged in fields such as research and development, agriculture, and warehousing and distribution services can now, too, benefit from the program’s block of low-cost hydropower.

Economic development is a key element of long-term hydropower contracts that NYPA has with the municipal and cooperative systems through 2025, at cost-based rates. Other facets of the partnership include energy efficiency measures to further lower utility bills and provide support for purchase of clean electric-drive vehicles by the systems to combat greenhouse gas emissions and reduce dependence on imported oil.

The Municipal and Rural Cooperative Economic Development Program is one of six lower cost power allocation programs that NYPA administers for economic development in the state. The programs are directly linked to hundreds of thousands of jobs at businesses and non-profit organizations around the state.

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About NYPA:

■The New York Power Authority uses no tax money or state credit. It finances its operations through the sale of bonds and revenues earned in large part through sales of electricity. ■NYPA is a leader in promoting energy efficiency, new energy technologies and electric transportation initiatives.■It is the nation's largest state public power organization, with 17 generating facilities in various parts of New York State and more than 1,400 circuit-miles of transmission lines. ■Approximately 80 percent of the electricity it produces is clean renewable hydropower. Its lower-cost power production and electricity purchases support hundreds of thousands of jobs throughout the state.■For more information, www.nypa.gov



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