senate Bill S2613

2013-2014 Legislative Session

Requires the power authority of the state New York to conduct an analysis of the economic viability of certain electric generating facilities

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to corporations, authorities and commissions
Jan 23, 2013 referred to corporations, authorities and commissions

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S2613 - Bill Details

See Assembly Version of this Bill:
A5016
Current Committee:
Law Section:
Public Authorities
Versions Introduced in 2011-2012 Legislative Session:
S6842A, A9873A

S2613 - Bill Texts

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Requires the power authority to conduct an analysis of the economic viability of certain electric generating facilities.

view sponsor memo
BILL NUMBER:S2613

TITLE OF BILL:
An act
to require the power authority of the state of New York
to conduct an analysis of the
economic viability of certain electric generating
facilities

PURPOSE:
This act would require the New York power authority to conduct an
analysis of the economic viability of certain electric generating
facilities.

SUMMARY OF PROVISIONS:

Section 1 provides that the New York State Power Authority (NYPA)
shall conduct an analysis of the current economic viability of base
load producing electric generating facilities in Chautauqua, Tompkins
and Niagara counties. Based on such analysis, and as deemed feasible
and advisable by the NYPA board, the Board shall then recommend
entering into a purchase power agreement with such facilities for at
least three years.

Section 2 provides that power purchased by NYPA pursuant to such
agreement with these facilities shall be considered Recharge New York
power and shall be utilized to augment Recharge New York power
allocations for eligible businesses.

EXISTING LAW:
Chapter 60 of the laws of 2011 established the Recharge New York power
allocation program.

JUSTIFICATION:
This new bill would authorize the New York Power Authority (NYPA) to
enter into a purchase power agreement between coal plants situated in
Chautauqua and Niagara Counties and NYPA, using the purchased energy
to supplement the state's Recharge NY program, which is designed to
retain and create jobs through allocations of economic development
incentives to employers.

Power plants in the state have faced enormous fiscal challenges
recently. Due to the fact that the transmission lines in the state
have not been given badly needed upgrades, plants have not been able
to stay competitive and get their energy delivered to where it is
needed in other parts of the state.
Western New York power plants contribute significantly to the people
and the economy of the region by employing hundreds of New Yorkers
with high paying jobs and providing millions of dollars a year in
direct benefits to the state and local economy. These facilities also
pay millions of dollars in annual property taxes and payments in lieu
of taxes agreements making them, in many areas, the largest taxpayer
in the school districts and municipalities.

The economic benefits of annual labor payments and operational
expenses of power plants, including locally-procured goods and


services, are multiplied across regions. This contribution makes a
huge impact. For example, in Chautauqua County, the NRG power plant
located in the City of Dunkirk contributes over $20 million in wages
and $10 million in PILOT payments to the school, the city and county
of Chautauqua, and well over $10 million in local goods and services.

Were any of these facilities to go under, or even be reduced in
capacity by any significant margin, it would decimate the financial
viability of the municipalities and school districts that are already
facing difficult fiscal times.

This bill provides a temporary solution by allowing for NYPA to
conduct an analysis of the minimum resources necessary to maintain
plant operations and to possibly enter into a purchase power
agreement with Western New York power plants to keep them in
operation in the short term, while state leaders work together on a
long term solution for our ailing power plant infrastructure. It will
heir avoid the devastating impact of power plants shutting down and
help to maintain the reliability of the power grid, while keeping
jobs in New York.

It is critical that New York State maintains a variety of modes of
power generation to ensure the reliability of the power grid. This
legislation will help New York State to be energy self-sufficient.
The coal plants in Chautauqua and Niagara Counties have just invested
millions of dollars in the last few years in state-of-the-art clean
burning technology to comply with federal Environmental Protection
Agency regulations. For example, the NRG power plant in Dunkirk
recently undertook $200 million in clean coal burning technology
upgrades. These state-of-the-art upgrades ensure that the state's
energy needs will be met in the face of unpredictable energy prices
and changing demand for other modes of electricity generation.

The ReCharge NY program is a successful economic development program
that retains and creates jobs by providing low-cost electricity to
attract new businesses and encourage existing firms and
not-for-profit organizations to stay and grow in the state. Under the
Recharge NY program, when businesses in the state make capital
investments that support the regional economic development priorities
in the state, they are awarded contracts based on their commitments.
This legislation utilizes the success of the ReCharge NY program and
further ensures the goals of regional economic development and job
retention in western New York are realized, while helping to avoid
the economic catastrophe should these power plants shut down.

PRIOR LEGISLATIVE HISTORY:
2012: S.6842,A./A.9873A Referred to Energy and Telecommunications

EFFECTIVE DATE: Immediate.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2613

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 23, 2013
                               ___________

Introduced  by  Sens.  YOUNG, MAZIARZ -- read twice and ordered printed,
  and when printed to be committed to  the  Committee  on  Corporations,
  Authorities and Commissions

AN  ACT  to  require  the  power  authority  of the state of New York to
  conduct an analysis of the  economic  viability  of  certain  electric
  generating facilities

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Within 90 days of the effective date of this act, the power
authority of the state of New York shall  conduct  an  analysis  of  the
current economic viability of load producing electric generating facili-
ties  in the counties of Chautauqua, Tompkins and Niagara, and as deemed
feasible and advisable by the trustees of such  authority,  taking  full
consideration  of  the  requirements  and  viability of the entire power
generating system needs of the state of New York with special  consider-
ation  of  the  ratepayers  and taxpayers in Western New York, recommend
entering into a purchase power agreement with the owners  and  operators
of  such  facilities.  Such power purchase agreements shall be effective
upon the conclusion of such 90 day period and be  designed  to  maintain
said  facilities  power  production  capacities  at a rate sufficient to
ensure at least three years worth of no less than a level  of  operating
income necessary to allow said facilities to remain open and functioning
reliably  and  safely  and  fully  staffed at at least ninety percent of
current employment levels, payrolls and local community benefits.
  S 2.  Notwithstanding any limitations or conditions contained in para-
graph 8 of subdivision (a) and paragraph 7 of subdivision (c) of section
188-a of the economic development law, any power purchased by the  power
authority  of  the state of New York pursuant to section one of this act
shall be considered Recharge New York power, and shall  be  utilized  to
augment  Recharge  New York power allocations for eligible businesses as
defined in paragraph 5 or 7 of subdivision (a) of section 188-a  of  the
economic  development  law  that are recommended for a Recharge New York
power allocation pursuant to part CC of chapter 60 of the laws of 2011.
  S 3. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07109-01-3

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