Senate Bill S631

                                 BILL NUMBER:  S631

 TITLE OF BILL :
An act to amend the public authorities law, in relation to
improvements and upgrades at the Niagara project


 PURPOSE :
This bill directs the New York Power Authority to substantially
improve and upgrade the Niagara project's power producing capacity.

 SUMMARY OF PROVISIONS :
Adds a new section 1005-b to the public authorities law directing the
New York Power Authority to improve the power producing capacity of
the Niagara project. Fifty percent of the realized power from the
improvements and upgrades will be deemed "Additional Expansion Power'~
and allocated to businesses in Western New York located within thirty
miles of the Niagara project. The remaining power will benefit the
State as a whole.

 JUSTIFICATION :
Through Western New York's powerful water resources, the State has
enjoyed the benefit of power from the Niagara power project. This bill
will compel the New York Power Authority to commence an effort to
improve and upgrade the energy producing capacity of the Niagara
project.
              

As host to the Niagara project, Western New York businesses located
within thirty miles of the Niagara project will be provided with fifty
percent of all new power generated by the improvements and upgraded.
The State as a whole will be provided with fifty percent of all new
power resulting from this bill as well. Thus, the host region of the
Niagara project and the State as a whole will derive substantial
benefits from the improvements and upgrades of the Niagara project.

Upon the creation of the Niagara project nearly half a century ago,
the State Legislature foresaw an industrial boom in Western New York
as a result of the abundance of low cost power.  However, the State
Legislature's projection has not come to fruition.  This bill will
help fulfill the promise that the Niagara project was supposed to
bring to Western New York, while providing substantial benefits to the
State as a whole. Hence, more low cost power to Western New York and
the State as a whole will result in a stronger local and state
economy.

 BILL HISTORY :
S.2853/A.4902 of 2003/2004; Referred to Senate Energy Committee
S.115/A.1574 of 2005/2006; Referred to Senate Energy and
Telecommunications Committee.
S.517 of 2007/2008; Referred to Senate Energy and Telecommunications
Committee.

 FISCAL IMPLICATIONS :
None to the State.

 EFFECTIVE DATE :
Immediately.