Bill S189-2011

Establishes the power authority of the state of New York shall make low cost hydropower available to certain hospitals

Establishes the power authority of the state of New York shall make low cost hydropower available to hospitals located within the counties of Niagara and Orleans.

Details

Actions

  • Jan 4, 2012: REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • Jan 5, 2011: REFERRED TO ENERGY AND TELECOMMUNICATIONS

Memo

BILL NUMBER:S189

TITLE OF BILL: An act to amend the public authorities law, in relation to establishing the power authority of the state of New York shall make low cost hydropower available to certain hospitals

PURPOSE: This legislation would make low cost hydropower produced by the Niagara Project available to hospitals located in the counties of Niagara and Orleans.

SUMMARY OF PROVISIONS: Section 1 amends subdivision 13 of section 1005 of the public authorities law to state that low cost hydropower be made available to hospitals that are located in Niagara and Orleans County. Such Power shall be allocated from the Niagara Project.

JUSTIFICATION: This legislation would allow all hospitals located in the counties of Niagara and Orleans to receive low cost hydropower directly from the Niagara Project. These hospitals are facing financial difficulties and this cost saving measure would allow them to save on their electric bills. Hospitals use an inordinate amount of electricity and by reducing the rate they must pay per kilowatt hour significant cost savings would be realized. For example, Niagara Falls Memorial Medical Center in 2005 used approximately 7.5 million kilowatt hours at an expense of over $500,000. By allowing for low cost hydropower we will ensure that all hospitals located in the affected areas fully utilize the natural source of power they have in the Niagara Project.

LEGISLATIVE HISTORY: S.23/A.6143 of 2007/2008; Referred to Senate Energy & Telecommunications Committee S.6324 of 2006/2007; Referred to Senate Energy & Telecommunications Committee S.1184/A.925 of 2009/2014; Referred to Energy and Telecommunications

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 189 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________
Introduced by Sen. MAZIARZ -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommuni- cations AN ACT to amend the public authorities law, in relation to establishing the power authority of the state of New York shall make low cost hydropower available to certain hospitals THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The opening paragraph of subdivision 13 of section 1005 of the public authorities law, as amended by chapter 436 of the laws of 2010, is amended to read as follows: 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 mega- watts 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 and for western New York economic development fund benefits pursuant to the eleventh undesignated paragraph of this section AND, PROVIDED FURTHER THAT LOW COST HYDROPOWER BE MADE AVAILABLE TO HOSPITALS THAT ARE LOCATED IN THE COUNTIES OF NIAGARA AND ORLEANS. 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 allo- cation of expansion power in effect on the effective date of this subdi- vision 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 negotiat- ing the terms and conditions of such contracts, the authority may consider a business' compliance with all current contractual obli- gations, 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 proceeds from the sale of such unallocated and allo- cated, but relinquished or withdrawn or currently not accessed expansion or replacement power, as shall be determined by the trustees, shall be allocated for the purposes of western New York economic development fund benefits pursuant to the eleventh undesignated paragraph of this section. Proceeds to such western New York economic development fund shall not preclude the authority from allocating expansion or replace- ment power to eligible companies under the provisions of this section. 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 with- drawn 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 para- graph (a) of this subdivision and the revitalization of existing indus- try pursuant to paragraph (b) of this subdivision. S 2. This act shall take effect immediately.

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