The net earnings from the sale of unutilized power from a hydroelectric plant in St. Lawrence County could benefit economic-development efforts in the county, Gov. Andrew Cuomo says.
The New York governor on Monday announced an agreement with legislative leaders to use those funds to create a new development fund for St. Lawrence County.
The agreement calls for applying the net earnings from the market sale of a block of unutilized hydropower from the New York Power Authority’s (NYPA) St. Lawrence-Franklin D. Roosevelt (FDR) hydroelectric plant to economic-development activities in St. Lawrence County, Cuomo’s office said in a news release.
(Sponsored)
House of Representatives Passes $78 Billion Tax Package
On January 31, the House of Representatives overwhelmingly passed the Tax Relief for American Families and Workers Act of 2024, a tax package worth $78 billion. The bill was approved
7 Cyber Security Essentials to Check Off
By Bogdan Bagovskyy vCIO Along with back-to-school season, Halloween decorations hitting the shelves, and the beloved pumpkin spice latte making its reappearance, there’s another often-overlooked event this fall: National Cybersecurity
The use of the anticipated earnings of about $2 million per year is also consistent with commitments made under the recently announced St. Regis land-claim agreement for payments to St. Lawrence County as part of the overall package of provisions settling the matter, according to the governor’s office.
The agreement adds “another dimension” to the efforts to spur economic development and growth in the North Country, Cuomo contended in the news release.
“By tapping into the region’s supply of unutilized hydropower, we can jumpstart the economy in the North Country, invest in local businesses and help create jobs and new opportunities for New Yorkers in St. Lawrence County,” Cuomo said.
The agreement calls for harnessing up to 20 megawatts (MW) of hydropower for area economic development from the net earnings in the sale of the power into the wholesale-electricity marketplace.
The hydropower is made available under contract to the Massena Electric Department (MED), which uses it for “sub-allocations” to eligible businesses, according to Cuomo’s office.
The legislation creates the Northern New York Power Proceeds Allocation Board, an entity that will use the net earnings, or “proceeds,” to award grants to enterprises in St. Lawrence County from a Northern New York Economic Development Fund.
The board will recommend the awards on the basis of statutory criteria, including capital investments and jobs. The NYPA board of trustees will take the recommendations into account before making awards, Cuomo’s office said.
The MED since 2012 has made the 20 MW available for sub-allocation to businesses at cost-based rates in consultation with the St. Lawrence River Valley Redevelopment Agency (RVRDA), the St. Lawrence County Industrial Development Agency (IDA) Local Development Corp., and the North Country Regional Economic Development Council.
The new legislation will also capture the monetized value of the power, Cuomo’s office contended.
Both the RVRDA and the IDA will assist in the fund’s administration and will provide input on grant applications working closely with NYPA and Empire State Development Corp.
The announcement “significantly increases the tools available” for bringing jobs and investments to St. Lawrence County, Patrick Kelly, CEO of the St. Lawrence County IDA, stipulated in the news release.
The MED draws the 20 MW of hydropower from an allotment previously sold to out-of-state electricity customers and redirected to New York state during the 2003 federal relicensing of the St. Lawrence-FDR project.
Cuomo will appoint five members to serve on the Northern New York Power Proceeds Allocation Board. Under the legislation, three of the members must reside in St. Lawrence County, according to Cuomo’s office.
The Northern New York Power Proceeds Allocation Act is similar to legislation created in 2012 for the use of unutilized hydropower from NYPA’s Niagara Power Project for economic development in Western New York.
The Niagara Power Project has generated approvals for more than 20 grant awards for enterprises in that region, according to the governor’s office.
Contact Reinhardt at ereinhardt@cnybj.com
