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NYPA Allocates Additional Low-Cost Power to Lewiston

Connie Cullen

August 30, 2007


LEWISTON—The New York Power Authority (NYPA) will provide the Town of Lewiston with an additional three megawatts (mw) of low-cost power from the Niagara Power Project as part of an agreement concerning the project’s relicensing.

The allocation is in addition to the 3.5 mw previously assigned to Lewiston under the agreement with the Host Communities in the Niagara project area.  Lewiston officials intend to use the town’s full 6.5-mw allocation to help lower residential electric bills.

Power from the Niagara project will begin flowing to Lewiston and the other Host Communities on Saturday (Sept. 1), when the project’s new 50-year federal license takes effect.

“We are pleased to be able to nearly double Lewiston’s power allocation,” NYPA President and Chief Executive Officer Roger B. Kelley said.  “The additional allocation is the maximum amount the town could have received under our relicensing agreement and is in keeping with our longstanding efforts to be a good neighbor in Lewiston, the home of the Niagara project generating facilities.”

"This allocation of an additional three megawatts from NYPA confirms that we will be able to reduce residential electrical rates in our town," Lewiston Town Supervisor Fred Newlin said.  "These three additional megawatts were achieved by direct and cooperative negotiations between myself and the Power Authority, and the result for Lewiston is more electricity than any other town or city in New York State will be receiving as a result of relicensing.”

 “My goal from day one was to pass the savings on directly to our taxpayers. A lot of people said it couldn't be done, but today marks the culmination of very exhaustive negotiations that I was honored to lead over the last 3 1/2 years.  Lewiston's residents will at long last be able see a tangible benefit from being the host community of the power project."

The additional allocation to Lewiston stems from a provision in the agreement calling for the Power Authority to make annual payments of at least $5 million to the Host Communities.

These payments will be funded through NYPA sales of Niagara power into the New York State wholesale market.

Although it was anticipated in June 2005, when the agreement was signed, that sale of 24 mw would be needed to obtain the $5 million, the Power Authority has determined that under current market prices it will be required to sell only 20 mw for this purpose.  The agreement provided for Lewiston to receive up to 3 mw of any power not needed to fund the payments to the communities.

In addition to the annual payments, the Host Communities will receive a total of 25 mw of Niagara hydropower, including Lewiston’s earlier 3.5-mw allocation. Under separate relicensing agreements, NYPA will provide a total of 4 mw of Niagara power to Niagara University and the Tuscarora Nation.

The Host Communities, in addition to the Town of Lewiston, are Niagara County, the City of Niagara Falls, the Town of Niagara and the Niagara Falls, Lewiston-Porter and Niagara Wheatfield school districts.


 About NYPA:

■    NYPA 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-owned electric utility, with 18 generating facilities in various parts of the state and more than 1,400 circuit-miles of transmission lines.

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