County wants fair share of annual profits
Niagara gets less in Higgins plan for Power Authority to give more
A Buffalo congressman has called for a bigger chunk of the New York Power Authority’s profits to be funneled into Western New York.
But some elected leaders in Niagara County — home to the plant that generates the power that creates a majority of the authority’s profits — have concerns about the federal lawmaker’s proposal for how to split up those proceeds.
Rep. Brian Higgins, D-Buffalo, has said he wants the area to share 36 percent of the authority’s annual profits — a number that could translate into about $65 million a year.
From there, roughly 60 percent of the funds would be used in Erie County, while about 40 percent would come to Niagara.
Higgins’ proposal, expressed in a letter sent to Gov. David A. Paterson and Power Authority President Richard M. Kessel earlier this month, was based on how much electricity is sent from the plant to each of the counties under two of the authority’s power programs, as well as their population, a spokeswoman said.
But there should be other considerations, like where the Niagara Power Project is physically located and, thus, where the power is generated, several elected leaders told The Buffalo News.
“Simply put, at the end of the day that plant is located in our confines,” Lewiston Supervisor Fred M. Newlin said. “Not to say Erie County isn’t deserving of its fair share, but it has to be put in proportion, when considering where the actual location of that plant is.”
Town of Niagara Supervisor Steven C. Richards agreed, and like the other officials who were interviewed, expressed support for Higgins’ proposal.
“I appreciate Congressman Higgins’ efforts here,” Richards said. “Obviously this would be a benefit to Western New York, no doubt about it.”
However, Richards added that he wanted to make sure there is a “fair and equal distribution of the money.” That means nothing less than equal shares for Erie and Niagara counties, he said.
Lewiston and the Town of Niagara were two of the seven members of the Niagara Power Coalition, which successfully negotiated a 50-year settlement with the authority through the relicensing process of the Niagara Power Project in Lewiston.
Coalition members, which also include Niagara County, the City of Niagara Falls, and the school districts of Lewiston- Porter, Niagara Falls and Niagara Wheatfield, are receiving $8 million and an allocation of low-cost power annually through 2057. The funding is divided for use in capital projects as well as recreational and tourism projects as part of the Niagara River Greenway.
Higgins helped Buffalo and Erie County receive a $279 million package from the authority in relicensing.
Kessel, the Power Authority’s chief executive, previously told The News he was committed to doing something significant for Western New York but said he would not negotiate in the media.
Under Higgins’ proposal, Niagara County would receive $25 million this year, with the amount increasing each year, with the county receiving more than $27 million in 2013.
At the same time he put out the June 15 letter, Higgins also released a list of specific spots in Erie County he would like to see funded. Those included a number of cultural institutions — the Buffalo Zoo and the Darwin Martin House were among them — as well as funding for the Buffalo Niagara Medical Campus and waterfront projects in Buffalo.
Also under the proposal, a commission of local elected leaders, business leaders and other stakeholders would be formed to distribute the funding. The commission would be in control once the first monies arrive, though the specific list of Buffalo projects as proposed by Higgins would be funded, said Theresa Kennedy, a spokeswoman for the congressman.
Niagara Falls City Council Chairman Chris Robins said that just as Buffalo has been highlighted in the Higgins proposal, Niagara Falls also has many needs that could be helped with more funding.
“Why wouldn’t [the money] go right where the water is being taken out?” Robins said.
Falls Mayor Paul A. Dyster said he generally believes that when it comes to the distribution of power funds, there should be at least $1 coming to his city for every dollar going to Buffalo.
“It’s the communities in Niagara County, the City of Niagara Falls and the Town of Lewiston that lost land to the creation of the plant,” Dyster said. “We lose water going over the falls.”
Dyster said he also would like to see the permitted uses of the funds be appropriate for Niagara Falls; such a list would allow for the redevelopment of old industrial sites, as well as allow for the development of green industries and work force training for those industries.
Rep. Chris Lee, R-Clarence, whose district includes parts of Erie, Niagara and Orleans counties, in April co-sponsored a bill with Higgins that would bring the profits of the sale of excess hydropower back to the region.
Lee said he also supports Higgins’ latest proposal, though when asked about some Niagara County leaders’ concern about the Erie-Niagara split, he said: “Let’s first worry about insuring that NYPA signs up for this program. We can worry about how the allocation comes after that.”
A spokeswoman for Rep. Louise Slaughter, D-Fairport, whose district also includes parts of Erie, Niagara and Orleans counties, declined to comment for this story. Spokesmen for Sens. Charles E. Schumer and Kirsten Gillibrand were contacted but did not respond by Niagara Weekend deadline.
Niagara County Legislature Chairman William L. Ross, CWheatfield, took a firm stance on the issue. “I don’t like the split,” Ross said of Higgins’ plan. “Fifty-fifty would be very nice.”
Support also extends into the business community in the county. Deanna Alterio Brennen, president and CEO of the Niagara USA Chamber, said she would also like to see a more equal sharing between the counties.
Alterio Brennen said she believed the most important aspect would be to keep the money in Western New York for economic development projects.
Lockport Mayor Michael W. Tucker was less eager than other elected officials to make any demands.
Tucker’s city is one of 17 municipalities and school districts in the Eastern Niagara Power Project Alliance, a group that has been seeking a compensation package from the authority since before the federal relicensing process of the Niagara Power Project ended.
The alliance has requested a settlement, unconnected to Higgins’ proposal, and the two sides are still negotiating.
“If we get 40 percent,” he said, “that’s 40 percent more than we’re getting today.”
Higgins, when asked about the overall reaction coming from Niagara County, said he is open to working with leaders in the county, adding that the most important thing to do is to first get a deal struck with the authority.
“There is certainly room for discussion about the distribution of those dollars,” he said, “and I want to do what is fair and equitable.”
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