“Actions by the New York Power Authority today advanced an acceleration of the cash payments totaling over $13 million to the City of Niagara Falls provided for under the 2005 relicensing of the Niagara Power Project. This serves to meet the immediate needs of Niagara Falls but the City deserves much better.
“This acceleration provides these payments at a discount rate of 6.25% despite the fact that interest rates are at all-time historic lows and near 0%. Despite claims that the “net present value” of the payments to the city are preserved, they are actually diminished.
“Revenues generated at the Niagara Power Plant exclusively are in the hundreds of millions of dollars. In 2008, NYPA had a surplus of $309 million; $236 million of this, or 76%, came from the Niagara Power Project. Last year alone, NYPA brought in $39 million more than budgeted because of excess water and therefore generation at Niagara.
“NYPA’s own studies found that only 14% of the economic benefit from the Niagara Power Project remains in Western New York. We are looking forward to representing Niagara Falls and continuing our fight to see that more of that stays right here in Western New York.”