There is a newer version of the New York Consolidated Laws
2006 New York Code - Powers And Duties Of Authority.
§ 1005. Powers and duties of authority. Forthwith upon the appointment
and organization of the trustees and subject to the conditions and
limitations in this title contained, the authority, in cooperation with
the proper Canadian authorities and those of the United States as
hereinafter directed, shall proceed with the improvement and development
of the Niagara river and the international rapids section of the Saint
Lawrence river (which is defined as that part of the said river from
Ogdensburg to the point where it leaves the territory of this state) for
the aid and benefit of commerce and navigation and for the development
of the hydroelectric power inherent therein in accordance with the
provisions of this title.
The authority is authorized to procure through a competitive
solicitation process power and energy from the competitive market and to
construct, improve and/or rehabilitate throughout its area of service
(a) such hydroelectric or energy storage projects, as it deems necessary
or desirable to contribute to the adequacy, economy and reliability of
the supply of electric power and energy or to conserve fuel and (b) such
base-load nuclear generating facilities or other facilities utilizing
new energy technologies as in its judgment are necessary (i) to supply
sufficient supplemental energy to make possible optimum use of the
generating capacity of the authority's Saint Lawrence and Niagara
hydroelectric projects, (ii) to supply low cost power and energy to high
load factor manufacturers which will build new facilities in the
authority's area of service or expand existing facilities provided such
power and energy is made available to them, and (iii) to supply the
future needs of the authority's existing municipal electric and rural
electric cooperative customers.
The authority is further authorized to construct and/or acquire and
complete such base load generating, transmission and related facilities
as it deems necessary or desirable to assist in maintaining an adequate
and dependable supply of electricity by supplying power and energy for
the metropolitan transportation authority, its subsidiary corporations,
the New York city transit authority, the port authority of New York and
New Jersey, the city of New York, the state of New York, the United
States, other public corporations and electric corporations within the
metropolitan area of the city of New York within the state of New York;
provided, however, that (i) the acquisition of completed or partially
completed facilities shall be after public hearing and shall be limited
to facilities located in New York city or Westchester county and the
energy and power generated by such facilities shall be used, to the
extent feasible, for the benefit of electric consumers in that area,
(ii) not more than one such generating facility shall be acquired in
each of New York city and Westchester county, (iii) the price to be paid
pursuant to any agreement entered into with respect to the purchase,
appropriation or condemnation of any such completed or partially
completed facility, as the case may be, shall be subject to the approval
of the state comptroller and (iv) transmission facilities shall not be
so acquired pursuant to this paragraph unless such acquisition is
necessary to assure delivery of power and energy produced by any
acquired generating facility. The authority is further authorized, to
the extent it deems it necessary or desirable, to provide power and
energy, as it may determine it to be available, for the use by the
Niagara frontier transportation authority or its subsidiary corporation.
The authority is authorized to make energy efficiency services, clean
energy technologies and, in the event that supplies of power and energy
are determined to be available from the competitive market for this
purpose, power and energy, available to public and nonpublic elementary
and secondary schools throughout the state.
A high load factor manufacturer is one which normally utilizes a
minimum electric demand of five thousand kilowatts and which will
normally utilize energy at the rate of approximately five hundred forty
kilowatt hours per month for each kilowatt of demand and of which the
cost of electricity normally represents at least seven and one-half
percent of its total product value.
The authority shall publish notice of any proposed allocation of firm
power and associated energy except such allocations as are subject to
the provisions of section one thousand nine of this chapter, at least
thirty days prior to the delivery of any energy pursuant thereto, which
notice shall, in the case of industrial allocations, document actions by
the authority pertaining thereto including solicitation for competing
proposals. In addition, such notice shall be transmitted to the
temporary president of the senate, the speaker of the assembly, and the
respective fiscal committees of the legislature.
Notwithstanding any inconsistent provision of law, the authority is
authorized to enter into contracts prior to July first, nineteen hundred
eighty-five to allocate a total of not more than thirty-six megawatts of
power and associated energy, available for allocation as a result of
voluntary relinquishment by high load factor manufacturers, of such
power and associated energy from base load nuclear generating facilities
of the authority, to furnish electricity to no more than three customers
which: (a) are located in the southeastern portion of the state; (b)
will build new facilities and/or expand existing facilities; (c) will
expand employment and investment in the state; and (d) will normally
utilize a minimum peak electrical demand of one thousand kilowatts.
The authority is further authorized to construct such generating,
transmission and related facilities within the service area of the Long
Island power authority, as the authority, in consultation with and upon
such terms and conditions as the Long Island power authority, deems
necessary or desirable.
Periodically, but no less often than annually, the authority is
authorized and directed to identify the net revenues produced by the
sale of expansion power and further to identify an amount of the net
revenues from the sale of expansion power which amount shall be used
solely for industrial incentive awards. Notwithstanding other lawful
purposes for which such revenues may be used, it shall be the preferred
purpose of the authority to make available all such net revenues for
industrial incentive awards. Provided, however, that industrial
incentive awards shall be made only in conformance with an economic
development plan covering all such net revenues which is submitted no
less often than annually by the authority and approved pursuant to
section one hundred eighty-eight of the commerce law. For purposes of
this paragraph, the term net revenues shall mean any excess of revenues
properly allocated to the sales of expansion power over costs and
expenses properly allocated to such sales.
* a. Notwithstanding any inconsistent provision of this title, the
authority shall make available all economic development power for
allocation to or for businesses and whose allocation of such power is
recommended by the New York state economic development power allocation
board pursuant to section one hundred eighty-seven of the economic
development law. "Economic development power" shall mean any power that
is voluntarily relinquished by businesses to the authority, except that
it shall not include any power from the Niagara or Saint Lawrence-FDR
projects or power under the power for jobs program which may be
voluntarily relinquished by businesses, small businesses and
not-for-profit corporations.
b. Notwithstanding any inconsistent provision of this title, the
authority shall make available all power under the power for jobs
program for allocation to or for businesses, small businesses and
not-for-profit corporations and whose allocation of such power is
recommended by such board pursuant to section one hundred eighty-nine of
the economic development law. Power under the power for jobs program
shall mean four hundred fifty megawatts of power in the initial three
phases of the program, three hundred megawatts of power in the fourth
phase of the program, and one hundred eighty-three megawatts in the
fifth phase of the program. The authority shall provide the least cost
power available acquired through a competitive procurement process, from
authority sources, or through an alternate method. The authority shall
conduct a competitive procurement process and may provide power through
an alternate method if the cost is lower than the cost of power obtained
through a competitive procurement process; provided, however, that the
use of such lower cost power from authority sources shall not reduce the
availability of, or cause an increase in the price of, power provided by
the authority for any other program authorized in this article or
pursuant to any other statute. Such competitive procurement process
shall be established by the economic development power allocation board,
in consultation with the department of public service, and implemented
by the authority. Notwithstanding the foregoing, the power to be
provided by the authority for the fifth phase of the power for jobs
program shall include, for the purpose of determining the total amount
of power to be delivered to recipients, power provided to program
participants by other suppliers under the energy service company option
pursuant to paragraph four of subdivision a of section one hundred
eighty-nine of the economic development law. For the purposes of this
paragraph and subdivision fourteen of this section, "local distributor
of electric service" shall mean an electric corporation as defined in
subdivision thirteen of section two of the public service law that was a
member of the New York power pool on January first, nineteen hundred
ninety-five, or its successor in interest.
c. The authority shall enter into contracts for purchase of power
during the fourth and fifth phases of the power for jobs program that
provide for delivery of power no sooner than January first, two thousand
one with respect to phase four, January first, two thousand two with
respect to phase five of the program, and December first, two thousand
four with respect to extensions of phase four and phase five contracts.
If the authority declines to make power available to or for a business
or not-for-profit corporation whose allocation has been so recommended,
the authority shall decline within the period specified by the board in
its recommendation and shall issue in writing a statement of reasons for
such denial.
d. The authority shall report quarterly to the New York state economic
development power allocation board on the anticipated availability of
economic development power and power under the power for jobs program
for the subsequent twelve-month period.
e. When the authority determines that economic development power or
power under the power for jobs program is available, the authority shall
notify the New York state economic development power allocation board.
f. The authority shall provide for the sale of power to its economic
development power customers at a uniform non-discriminatory rate. The
authority shall provide for the sale of power from authority sources,
power acquired through a competitive procurement process established by
the New York state economic development power allocation board, or power
provided by the authority through an alternate method to local
distributors of electric service for businesses and not-for-profit
corporations receiving allocations of power under the power for jobs
program at a rate that shall combine the rate set for power from
authority sources and the actual cost of power obtained through the
competitive procurement process or from an alternate method, with no
mark-up; provided however, that prior to the time when power is
available through the competitive procurement process, the authority
shall provide power under the power for jobs program at the rate set for
power from authority sources.
g. 1. The authority is authorized, as deemed feasible and advisable by
the trustees, to use revenues from the sale of power from the
Fitzpatrick nuclear project under the initial three phases of the power
for jobs program established pursuant to chapter three hundred sixteen
of the laws of nineteen hundred ninety-seven, to the extent such
revenues exceed revenues from the sale of such power in the calendar
year prior to the effective date of chapter three hundred sixteen of the
laws of nineteen hundred ninety-seven, to make a voluntary contribution
no later than sixty days after the end of the state fiscal year into the
state treasury to the credit of the general fund.
2. The authority, as deemed feasible and advisable by the trustees, is
authorized to make payments to recipients of the power for jobs
electricity savings reimbursements and additional annual voluntary
contributions into the state treasury to the credit of the general fund.
The authority shall make such contributions to the state treasury no
later than ninety days after the end of the calendar year in which a
credit under subdivision nine of section one hundred eighty-six-a of the
tax law is available: (a) for the additional three hundred megawatts of
power under the fourth phase of the program provided under chapter
sixty-three of the laws of two thousand and under the fifth phase for
the additional one hundred eighty-three megawatts provided under chapter
two hundred twenty-six of the laws of two thousand two; and (b) for any
extension of any contract for allocations under the fourth phase of the
program and under the fifth phase of the program. Payments for any
electricity savings reimbursement under section one hundred eighty-nine
of the economic development law shall be made pursuant to such section.
Such annual contributions shall be equal to fifty percent of the total
amount of such credits available each year to all local distributors of
electricity. In addition, such authorization for contribution in state
fiscal year two thousand two--two thousand three shall be equal to the
total amount of credit available in two thousand one and two thousand
two; and such authorization for contribution in state fiscal year two
thousand three--two thousand four shall be equal to the total amount of
credit available in two thousand three; under subdivision nine of
section one hundred eighty-six-a of the tax law under the fourth phase
of the program for the additional three hundred megawatts provided under
chapter sixty-three of the laws of two thousand and under the fifth
phase for the additional one hundred eighty-three megawatts provided
under chapter two hundred twenty-six of the laws of two thousand two. In
state fiscal year two thousand four--two thousand five, such authorized
annual contribution shall be equal to one hundred percent of the total
amount of such credits available each year to all local distributors of
electricity. Such authorization for contribution in state fiscal years
two thousand four and two thousand five shall be equal to the total
amount of credit available in two thousand four and two thousand five;
under subdivision nine of section one hundred eighty-six-a of the tax
law under the fourth phase of the program for the additional three
hundred megawatts provided under chapter sixty-three of the laws of two
thousand and under the fifth phase for the additional one hundred
eighty-three megawatts provided under chapter two hundred twenty-six of
the laws of two thousand two. In addition, such authorization for
contribution for any extension of any contract for allocations under the
fourth phase of the program and under the fifth phase of the program in
each state fiscal year shall be equal to the total amount of credit or
reimbursement available in state fiscal year two thousand four--two
thousand five, state fiscal year two thousand five--two thousand six and
two thousand six--two thousand seven. Additionally, notwithstanding any
other section of law, the authority is authorized to make a contribution
in an amount related to total amounts of credit received under phases
one, two, three, four and five of the program. In no case shall the
contribution for state fiscal year two thousand five--two thousand six
be less than seventy-five million dollars. The contribution for state
fiscal year two thousand six--two thousand seven shall be one hundred
million dollars. The department of public service shall estimate the
payment due by the end of the calendar year in which the credit is
available. In no case shall the amount of the total annual contributions
for the years during which delivery and sale of power associated with
all power for jobs phases and any extensions thereof takes place exceed
the aggregate total of three hundred ninety-four million dollars.
3. Other authority customers shall not incur any costs in the
implementation of the power for jobs program.
h. For the purposes of paragraphs b and f of this ninth undesignated
paragraph, "authority sources" shall be defined as power and energy
supplied by generating facilities of the authority in operation or under
construction as of the effective date of this paragraph and power and
energy procured by competitive solicitation; provided, however, that it
shall not include power from the Niagara and Saint Lawrence-FDR power
projects, except this shall not preclude the use of proceeds from the
sale of power from such projects for energy cost savings benefits as
provided herein.
* NB Effective until December 31, 2007
* Notwithstanding any inconsistent provision of this title, the
authority shall make available all economic development power for
allocation to or for businesses whose allocation of such power is
recommended by the New York state economic development power allocation
board pursuant to section one hundred eighty-seven of the commerce law.
If the authority declines to make power available to or for a business
whose allocation has been so recommended, the authority shall decline
within the period specified by the board in its recommendation and shall
issue in writing a statement of reasons for such denial.
a. Economic development power shall mean any power generated at the
Fitzpatrick nuclear project that is voluntarily relinquished by
businesses.
b. The authority shall report quarterly to the New York state economic
development power allocation board on the anticipated availability of
economic development power for the subsequent twelve-month period.
c. When the authority determines that economic development power is
available, the authority shall notify the New York state economic
development power allocation board.
d. The authority shall provide for the sale of power from the
Fitzpatrick nuclear project to its industrial, business, and economic
development power customers at a uniform non-discriminatory rate.
* NB Effective December 31, 2007
The authority is further authorized, as deemed feasible and advisable
by the trustees, to acquire, maintain, manage, operate, improve and
reconstruct as a project or projects of the authority one or both of the
steam generation facilities owned by the state known as the Sheridan
avenue steam generating plant on Sheridan avenue in the city of Albany
and used to supply steam to state facilities, together with any
properties, buildings and equipment at the sites thereof or ancillary
thereto, for the generation and sale of thermal energy and the
cogeneration and sale of electricity for use by facilities of the state
within the county of Albany. All the authority's costs, including its
acquisition, capital, operating and maintenance costs, shall be
recovered fully from the customers receiving service from such project
or projects. Thermal energy and electricity not required by the state
may be sold by the authority to others. The authority is not authorized
to use refuse or refuse-derived fuel in operating the project or
projects. Any agreement for such acquisition shall insure that the
authority is not liable or otherwise responsible for circumstances
arising from the prior operation of such facilities. The acquisition and
purchase of such land, buildings and equipment by the authority, and any
actions taken to effect such acquisition and purchase, are hereby exempt
from the provisions of article eight of the environmental conservation
law. The application of such exemption shall be strictly limited to the
acquisition and purchase of such land, buildings and equipment by the
authority and such agreements with the state. Nothing herein shall
exempt the authority from otherwise applicable laws respecting the
expansion, conversion, operation and maintenance of such land, buildings
and equipment.
The authority is authorized and directed:
1. To cooperate with the appropriate agencies and officials of the
United States government to the end that any hydroelectric project on
the Niagara or Saint Lawrence rivers undertaken under this title shall
be consistent with and in aid of any plans of the United States for the
improvement of commerce and navigation along such rivers and shall be so
planned and constructed as to be adaptable to the plans of the United
States therefor, so that the necessary channels, locks, canals, and
other navigational facilities may be constructed and installed by the
United States, in, through, and as part of such project.
2. To negotiate with the appropriate Canadian authorities and agencies
respecting the improvement and development of the Niagara river, and
international rapids section of the Saint Lawrence river for the aid and
benefit of commerce and navigation and the development of hydro-electric
power therefrom, and to plan and agree with them upon cooperative action
to that end including any shifting of international boundary lines
between Canada and the United States and upon the use, control and
disposition of the facilties to be created and the hydro-electric power
to be developed by any project constructed in such rivers. Such
negotiations and agreements shall be conducted and concluded with due
regard to the position of the United States in respect to international
agreements, and any such agreements as may be reached with Canadian
authorities or agencies may be submitted by the authority to congress
for its approval, if it be advised that such approval is necessary or
desirable.
3. To apply to the appropriate agencies and officials of the United
States government and/or of Canada or its provinces, including the
federal power commission, the atomic energy commission, and the
international joint commission, for such licenses, permits or approval
of its plans or projects as it may deem necessary or advisable, and in
its discretion, and upon such terms and conditions as it may deem
appropriate, to accept such licenses, permits or approvals as may be
tendered to it by such agencies or officials and such federal or other
public or governmental assistance as is now or may hereafter become
available to it; and to enter into contracts with such agencies or
officials or utility companies relating to the construction or operation
of any project authorized by this title. Neither the authority nor any
trustee, officer or agent thereof shall have any power to waive or
surrender for any purpose whatsoever any right of the state of New York,
whether sovereign or proprietary in character, in and to the Niagara and
Saint Lawrence rivers, their waters, power, channels, beds, or uses, or
the right of the state to assert such rights at any future time;
provided, however, that nothing herein contained shall be construed as
limiting the power of the authority to accept licenses issued by the
federal power commission pursuant to the provisions of the federal power
act, as amended, or by the atomic energy commission pursuant to the
provisions of the atomic energy act of 1954, as amended, and the terms
and conditions therein imposed pursuant to law. If for any reason the
authority shall fail to secure any such license, permit or approval as
it may deem necessary or advisable, or shall decide not to make
application therefor, it is authorized to institute suit, or to apply to
congress for legislation, or take such other action in the premises as
it may deem necessary or advisable, in the furtherance of the project
and for the protection of its rights and those of the state.
4. To study the desirability and means of attracting industry to the
state of New York.
5. To develop, maintain, manage and operate those parts of the Niagara
and Saint Lawrence hydroelectric projects owned or controlled by it in
such manner as to give effect to the policy hereby declared (and all
plans and acts, and all contracts for the use, sale, transmission and
distribution of the power generated by such projects, shall be made in
the light of, consistent with and subject to this policy), namely, that
such projects shall be in all respects for the aid, improvement, and
benefit of commerce and navigation in, through, along and past the
Niagara river, the Saint Lawrence river and the international rapids
section thereof, and that in the development of hydro-electric power
therefrom such projects shall be considered primarily as for the benefit
of the people of the state as a whole and particularly the domestic and
rural consumers to whom the power can economically be made available,
and accordingly that sale to and use by industry shall be a secondary
purpose, to be utilized principally to secure a sufficiently high load
factor and revenue returns to permit domestic and rural use at the
lowest possible rates and in such manner as to encourage increased
domestic and rural use of electricity. In furtherance of this policy and
to secure a wider distribution of such power and use of the greatest
value to the general public of the state, the authority shall in
addition to other methods which it may find advantageous make provision
so that municipalities and other political sub-divisions of the state
now or hereafter authorized by law to engage in the distribution of
electric power may secure a reasonable share of the power generated by
such projects, and shall sell the same or cause the same to be sold to
such municipalities and political subdivisions at prices representing
cost of generation, plus capital and operating charges, plus a fair cost
of transmission, all as determined by the trustees, and subject to
conditions which shall assure the resale of such power to domestic and
rural consumers at the lowest possible price, provided, however, that in
disposing of hydro-electric power pursuant to and in furtherance of the
aforementioned policy and purposes, appropriate provision may also be
made to allocate a reasonable share of project power to agencies created
or designated by other states and authorized to resell the power to
users under the same terms and conditions as power is disposed of in New
York state. To that end, the authority may provide in any contract or
contracts which it may make for the sale, transmission and distribution
of the power that the purchaser, transmitter or distributor shall
construct, maintain and operate, on such terms as the authority may deem
proper, such connecting lines as may be necessary for transmission of
the power from main transmission lines to such municipalities or
political subdivisions.
Contracts for the sale, transmission and distribution of power
generated by such projects shall provide for the effectuation of the
foregoing policy and shall provide:
a. Payment of all operating and maintenance expenses of the project.
b. Interest on and amortization and reserve charges sufficient within
fifty years of the date of issuance to retire the bonds of the power
authority issued for the project.
c. Continuous control and operation of the project by the authority.
d. The effectuation of the policy declared in this sub-paragraph.
e. Full and complete disclosure to the authority of all factors of
cost in the transmission and distribution of power, so that rates to
consumers may be fixed initially in the contract and may be adjusted
from time to time on the basis of true cost data, provided that in
fixing such cost of transmission and distribution no account shall be
given to any franchise value, going value or good-will based upon the
existence of the contract and the availability of the power for sale by
the transmitting or distributing company or any company associated
therewith.
f. Periodic revisions of the service and rates to consumers on the
basis of accurate cost data obtained by such accounting methods and
systems as shall be approved by the trustees and in furtherance and
effectuation of the policy declared in this sub-paragraph.
g. That the rates, services and practices of the purchasing,
transmitting and/or distributing public agencies or companies in respect
to the power generated by such projects shall be governed by the
provisions and principles established in the contract, and not by
regulations of the public service commission or by general principles of
public service law regulating rates, services and practices and that in
the event any such public agencies or companies which purchase power
from the authority shall sell any such power for resale, such sale for
resale shall be made at rates no higher than those at which the power
was purchased from the authority.
h. The rate structures agreed upon in such contract may provide
different rates for different localities, classes of consumers, and
amounts of current consumed, and for changes in the rates resulting from
variation in operating costs and fixed charges.
i. For the cancellation and termination of any such contract upon
violation of the terms thereof by the purchasing, transmitting or
distributing public agency or company, or any subsidiary or associate
thereof.
j. For such security for performance as the authority may deem
practicable and advisable, including provisions assuring the continuance
of service by the purchasing, transmitting and/or distributing public
agencies or companies and/or the use of their facilities for such
service and/or the continuance of an outlet and adequate market for the
power generated by such projects.
k. Such other terms not inconsistent with the provisions and policy of
this title as the authority may deem advisable.
6. To develop, maintain, manage and operate its projects other than
the Niagara and Saint Lawrence hydroelectric projects so as (i) to
provide an adequate supply of energy for optimum utilization of its
hydroelectric projects, (ii) to attract and expand high load factor
industry, (iii) to provide for the additional needs of its municipal
electric and rural electric cooperative customers and (iv) to assist in
maintaining an adequate, dependable electric power supply for the state.
Contracts for the sale, transmission and distribution of power and
energy generated by such projects shall provide for the effectuation of
the policy set forth in this title relating to such projects and shall
provide:
a. Payment of all operating and maintenance expenses of the projects.
b. Interest on and amortization and reserve charges sufficient within
fifty years of the date of issuance to retire the bonds of the authority
issued for the projects.
c. For the cancellation and termination of any such contract upon
violation of the terms thereof by the purchasing, transmitting or
distributing public agency or company, or any subsidiary thereof.
d. That the rates, services and practices of the purchasing,
transmitting and/or distributing public agencies and rural electric
cooperatives in respect to the power and energy from such projects shall
be governed by the provisions and principles established in the
contract, and not by regulations of the public service commission or by
general principles of public service law regulating rates, services and
practices and that in the event any such public agencies or cooperatives
which purchase power from the authority shall sell any such power for
resale, such sale for resale shall be made at rates no higher than those
at which the power was purchased from the authority.
e. In the case of a contract with an electric corporation entered into
on or after May first, nineteen hundred seventy-four (i) for assurances
by the electric corporation of prompt and timely payment of all bills
rendered by the authority and that failure to make such prompt and
timely payment shall be grounds for immediate termination of the
contract, and (ii) that in the event the contract is so terminated, the
electric company will wheel to such purchasers as the authority may
direct the power and energy that would have been sold to the electric
company had the contract not been terminated.
f. Such other terms not inconsistent with the provisions and policy of
this title as the authority may deem advisable.
7. To proceed with the physical construction or completion of any
project authorized by this title, including the erection of the
necessary dams, power houses and other facilities, instrumentalities and
things necessary or convenient to that end, and including also the
erection of such transmission lines as may be necessary to conduct
electricity to users located at or near the site; and including also the
acquisition, by contract only with the owners thereof, of transmission
lines or the use of such transmission lines, available or which may be
made available, to conduct electricity to such point or points at which
the electricity is sold by the authority to any person, corporation or
association, public or private, engaged in the business of distribution
and sale of electricity to ultimate consumers or if the authority is
unable to so acquire by contract the ownership or use of such
transmission lines, including also the erection by the authority of
transmission lines necessary for such purposes; and thereafter to
maintain and operate the project in accordance with the provisions and
policy of this title. The authority is specifically authorized to
undertake the construction of any project in one or more steps as it may
find economically desirable or advantageous, and as it may agree with
the appropriate Canadian and/or United States authorities. Whenever in
this title reference is made to "project", it shall be understood to
refer to such part of any project authorized by this title as may from
time to time be in existence or immediately projected.
8. To cooperate with and, when the trustees deem it feasible and
advisable, to enter into contractual arrangements with utility
companies;
a. With respect to construction and operation of pumped storage
facilities by the authority and supply of all or part of the necessary
pumping energy by the utilities and their purchase of all or part of the
output.
b. With respect to construction, completion, acquisition, ownership
and/or operation of baseload generating facilities, fuel, docks,
sidings, loading or unloading equipment, storage facilities and other
subsidiary facilities and disposition of the output of such generating
facilities.
c. With respect to construction, acquisition, ownership, operation
and/or use of transmission facilities.
9. To cooperate with and, when the trustees deem it feasible and
advisable, to enter into contractual arrangements with municipal
corporations with respect to construction, improvement, rehabilitation,
ownership and/or operation of hydroelectric generating facilities and
subsidiary facilities and disposition of the output of such generating
facilities.
10. To cooperate with and, when the trustees deem it feasible and
advisable, to enter into contractual arrangements with New York state
energy research and development authority in connection with the
planning, siting, development, construction, operation and maintenance
of generating facilities of the authority utilizing new energy
technologies to the extent such action is consistent with the purposes
and powers granted by law to New York state energy research and
development authority.
11. To exercise all the powers necessary or convenient to carry out
and effectuate the purposes and provisions of this title; and as
incidental thereto to own, lease, build, operate, maintain and dispose
of real and personal property of every kind and character, to acquire
real property and any or every interest therein for its lawful purposes
by purchase, or by condemnation as hereinafter provided, to borrow money
and secure the same by bonds or liens upon revenue from any property or
contracts held or to be held by it, to sell water or electric power, and
generally to do any and every thing necessary or convenient to carry out
the purposes of this title, provided that the authority shall have no
power at any time to pledge the credit of the state nor shall any of its
obligations or securities be deemed to be obligations of the state nor
shall the authority have the power to lease or sell any dam, or power
house at the site.
12. Notwithstanding any limitations hereinbefore expressed, the
authority is authorized and directed forthwith or from time to time as
it shall deem advisable and within the limitations of the appropriations
made available for it to initiate and prosecute all inquiries,
investigations, surveys and studies which it may deem necessary or
desirable as preliminary to the effectuation of the other powers and
duties conferred upon it by this title.
13. Notwithstanding any other provision of law to the contrary but
subject to the terms and conditions of federal energy regulatory
commission licenses, to allocate or reallocate directly or by sale for
resale, two hundred fifty megawatts of firm Niagara project
hydroelectric power as "expansion power" and four hundred forty-five
megawatts of firm Niagara project hydroelectric power as "replacement
power" to businesses within the state located within thirty miles of the
Niagara project, and four hundred ninety megawatts of firm and
interruptible power from the Saint Lawrence-FDR project as "preservation
power" sold to businesses located within the counties of Jefferson,
Saint Lawrence and Franklin, provided that the amount of expansion power
allocated to businesses in Chautauqua county on January first, nineteen
hundred eighty-seven shall continue to be allocated in such county and,
provided further that up to seventy megawatts of replacement power, up
to thirty-eight and six-tenths megawatts of preservation power from the
Saint Lawrence-FDR project which is relinquished or withdrawn after the
effective date of chapter three hundred thirteen of the laws of two
thousand five which amended this subdivision and, for the period ending
on December thirty-first, two thousand six, up to twenty megawatts of
other power from the Saint Lawrence-FDR project which is unallocated as
of the effective date of chapter three hundred thirteen of the laws of
two thousand five which amended this subdivision, shall be allocated by
the authority together with such other funds of the authority as the
trustees deem feasible and advisable for energy cost savings benefits
pursuant to the twelfth undesignated paragraph of this section.
Provided, however, that the amount of replacement, preservation power,
or the additional twenty megawatts of Saint Lawrence-FDR power for the
period ending December thirty-first, two thousand six made available for
such purpose, used for energy cost savings benefits that are
relinquished by or withdrawn from a recipient thereof shall be offered
by the authority proportionately for a period of six months for
reallocation to applicants who qualify respectively for replacement or
preservation power allocations as provided in this subdivision. If such
power is not allocated within such period it shall be allocated for the
purpose of energy cost savings benefits pursuant to subdivision (h) of
section one hundred eighty-three of the economic development law. The
authority shall negotiate contracts on reasonable terms and conditions
to renew or extend every permanent contract allocation of expansion
power in effect on the effective date of this subdivision and, to the
extent consistent with such contracts, the authority shall negotiate
contracts on reasonable terms and conditions to extend or renew all
other allocations or allotments of such power in effect on such date.
The authority shall negotiate contracts on reasonable terms and
conditions to renew or extend for a period of at least five years every
permanent contract allocation of replacement power in effect on the
effective date of chapter three hundred thirteen of the laws of two
thousand five which added this sentence and that would expire by its
terms on or before the end of the initial federal energy regulatory
commission license for the Niagara project; provided that, in
negotiating the terms and conditions of such contracts, the authority
may consider a business' compliance with all current contractual
obligations, including employment and power usage commitments. Contracts
entered into pursuant to this subdivision shall contain reasonable
provisions providing for the partial or complete withdrawal of the power
in the event the recipient fails to maintain mutually agreed levels of
employment, investment, and power utilization. Expansion or replacement
power relinquished by businesses or withdrawn by the authority shall be
allocated directly or by sale for resale by the authority to businesses
within the state located within thirty miles of the Niagara project
provided, that the amount of power allocated to businesses in Chautauqua
county on January first, nineteen hundred eighty-seven shall be
allocated in such county. Preservation power that is relinquished by
businesses or withdrawn by the authority shall be allocated directly or
by sale for resale by the authority within the counties of Jefferson,
Saint Lawrence and Franklin. Allocations made pursuant to this paragraph
shall be made in accordance with criteria established by the trustees.
Such criteria shall address the expansion of industry and employment
pursuant to paragraph (a) of this subdivision and the revitalization of
existing industry pursuant to paragraph (b) of this subdivision.
(a) Criteria for eligibility for expansion, replacement and
preservation power. Each application for an allocation for expansion,
replacement or preservation power shall be evaluated by the trustees
under criteria which shall include but need not be limited to:
(1) the number of jobs created as a result of a power allocation;
(2) the business' long term commitment to the region as evidenced by
the current and/or planned capital investment in business' facilities in
the region;
(3) the ratio of the number of jobs to be created to the amount of
power requested;
(4) the types of jobs created, as measured by wage and benefit levels,
security and stability of employment;
(5) the amount of capital investment, including the type and cost of
buildings, equipment and facilities to be constructed, enlarged or
installed;
(6) the extent to which a power allocation will affect the overall
productivity or competitiveness of the business and its existing
employment;
(7) the extent to which an allocation of power may result in a
competitive disadvantage for other business in the state;
(8) the growth potential of the business facility and the contribution
of economic strength to the area in which the business facility is or
would be located;
(9) the extent of the business' willingness to make jobs available to
persons defined as eligible for services under the federal job training
partnership act of nineteen hundred eighty-two and the extent of the
business' willingness to satisfy affirmative action goals;
(10) the extent to which an allocation of power is consistent with
state, regional and local economic development strategies and priorities
and supported by local units of government in the area in which the
business is located; and
(11) the impact of the allocation on the operation of any other
facilities of the business, on other businesses within the region, and
upon other electric ratepayers.
(b) Revitalization. In addition to the criteria provided in paragraph
(a) of this subdivision the trustees shall establish special criteria
for the evaluation of applications for power allocated for the
revitalization of industry. Such criteria shall include, but need not be
limited to:
(1) that the business is likely to close, partially close or relocate
resulting in the loss of a substantial number of jobs;
(2) that the business is an important employer in the community and
efforts to revitalize the business are in long-term interests of both
employers and the community;
(3) that a reasonable prospect exists that the proposed allocation of
power will enable the business to remain competitive and become
profitable and preserve jobs for a substantial period of time;
(4) that the applicant demonstrates cooperation with the local
electricity distributor and other available sources of assistance to
reduce energy costs to the maximum extent practicable, through
conservation and load management; and
(5) that the allocation will not unduly affect the cost of electric
service to customers of the local electricity distributor.
* 14. a. To provide to the governor, to the speaker of the assembly,
and to the temporary president of the senate, on or before April first
of each year, an economic development report including projections for
the next succeeding twelve months of the amount of economic development
power, expansion power, replacement power, preservation power, high load
factor power, municipal distribution agency power and power under the
power for jobs programs which will be or is expected to be available
with a listing of the current recipients of such power, and data on the
number and types of jobs resulting from allocation of power under each
such program. Such report shall include the amount of revenues collected
and used in the previous calendar year pursuant to the eighth unnumbered
paragraph of this section. Such report shall describe the process by
which the authority obtained lowest cost power made available under the
power for jobs program. Such report shall contain a record of wholesale
power supply bids provided to the authority under a competitive
procurement process and the price of power obtained through any
alternate methods. Such report shall state the reasons for choosing each
specific source of power under each of the foregoing power programs and
the price at which that power was available.
b. To provide to the governor, to the speaker of the assembly, and to
the temporary president of the senate on or before December first, two
thousand, a report on the power for jobs program. Such report shall
include the amount of power provided under the program, number of jobs
created and number of jobs retained as a result of allocations of power
under the program, and number of jobs per megawatt of power provided.
Such report shall separately list such information for the state,
businesses, small businesses, not-for-profit corporations, and service
territory of each local distributor of electric service. Such report
shall also include an evaluation with regard to the need for
continuation of economic development programs, including the power for
jobs program.
* NB Effective until December 31, 2007
* 14. To provide to the governor, to the speaker of the assembly, and
to the temporary president of the senate, on or before April first of
each year, an economic development report including projections for the
next succeeding twelve months of the amount of economic development
power which will be or is expected to be available with a listing of the
current recipients of that power, and data on the number and types of
jobs resulting from allocation of economic development power. Such
report shall also include the amount of revenues collected and used in
the previous calendar year pursuant to the eighth unnumbered paragraph
of this section.
* NB Effective December 31, 2007
15. To provide low cost electricity, as well as energy efficiency and
conservation services and facilities using conventional or new energy
technologies, to the following military establishments within the state:
Fort Drum, Fort Hamilton, United States Academy at West Point,
Watervliet Arsenal, Niagara Falls Air Reserve Base, Air Force Research
Laboratory at Rome, Defense Finance Accounting Services at the former
Rome Air Force Base, North East Air Defense Sector, Stewart Air National
Guard Base, Hancock Field Air National Guard Base, Stratton Air National
Guard Base and Air National Guard Base at Francis S. Gabreski Airport.
Services provided pursuant to this section shall be provided only to
support United States Department of Defense activities as they are
conducted at such facilities. The authority may enter into contracts
with the United States, its agencies and instrumentalities, and other
public and private entities to effectuate the foregoing.
The authority is authorized to allocate up to seventy megawatts of
unallocated power from the Niagara project sold prior to the effective
date of this paragraph as replacement power, up to thirty-eight and
six-tenths megawatts of preservation power from the Saint Lawrence-FDR
project which is relinquished or withdrawn after the effective date of
this paragraph, and for the period ending on December thirty-first, two
thousand six, up to an additional twenty megawatts of power from the
Saint Lawrence-FDR project which is unallocated as of the effective date
of this paragraph, for sale into the wholesale market, the net earnings
from which and such other funds of the authority as deemed feasible and
advisable by the trustees, shall be used for energy cost savings
benefits. Such energy cost savings benefits shall be made upon
recommendation of the economic development power allocation board,
pursuant to subdivision (h) of section one hundred eighty-three of the
economic development law. For purposes of this paragraph, the term net
earnings shall mean any excess of revenues earned from the sale of such
power allocated to the wholesale market from the Niagara and Saint
Lawrence-FDR projects over the revenues that would have been received
had such firm power been allocated and sold on a firm basis by the
authority prior to the effective date of this paragraph.
The governor shall establish a temporary commission on the future of
New York state power programs for economic development as soon as
practicable but no later than May first, two thousand six. On or before
December first, two thousand six, the commission shall make
recommendations to the governor and the legislature on whether to
continue, modify, expand or replace the state's economic development
power programs, including but not limited to the power for jobs program
and the energy cost savings benefit program, and shall recommend
legislative language necessary to implement its recommendations. The
commission shall consist of eleven members, comprised of five members
appointed by the governor, one of whom he or she shall designate as
chairperson, two members by the speaker of the assembly, two members by
the temporary president of the senate, one member by the minority leader
of the assembly and one member by the minority leader of the senate.
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