Thought this would be of interest. M

NNY groups gear up to reopen NYPA talks.
Source: Watertown Daily Times (Watertown, NY) (via Knight-Ridder/Tribune
News Service)
Date: 12/18/2005




Byline: Shane M. Liebler

Dec. 18--MASSENA -- Several north country groups are gearing up for
renegotiation of the relicensing agreement the New York Power Authority
made with St. Lawrence County communities.

Since Waddington officials first spoke out against a tentative $279
million settlement with Erie County as part of the Niagara Power Project
relicensing, regional politicians have come forward and a concerned
citizens group is resurfacing.

NYPA has not indicated it will consider renegotiating in the near  future.
The St. Lawrence-FDR Power Project agreement stipulates a  reopener may
take place in 2013. The St. Lawrence Local Government Task  Force plans to
meet on the issue after the deals are analyzed by legal  counsel.

As part of Federal Energy Regulatory Commission relicensing in  2003, the
task force negotiated $115 million for municipalities and  schools and the
return of riverfront acreage over the term of the  50-year license. The
agreement included another $116 million investment  in recreational
facilities and environmental initiatives, according to  NYPA data.

The Niagara Power Project agreements would provide nearly $973  million to
Niagara and Erie counties over 50 years, with $694.2 million  of that
going to Niagara County for its schools and municipalities. The  current
Niagara FERC license expires in 2007.

The Advocacy Group of concerned citizens and attorneys has renewed  its
activity, studying both deals to determine what St. Lawrence  communities
are due, said Edward J. Kaneb Sr., a member of the group and  former
chairman of the Massena Electric Utilities Board.

  "We are very much involved. We intend to stay involved,"  Mr. Kaneb
said. "We intend to inform the public how badly we were  misrepresented."

The Advocacy Group, formed during the original St. Lawrence  negotiations,
criticized the task force for taking a weak stance on  Power Authority
reparations because of conflicts of interests.

  "We are knowledgeable and we are prepared to stay involved to  make sure
the north country and the public are properly represented,  which they
weren't by the task force," Mr. Kaneb said.  "Many of the task force
members are either former employees or have  relatives that worked for
NYPA or have relatives that received jobs with  the Power Authority.
That's a serious conflict of interest."

This week NYPA suggested the deals are equitable based on the  comparison
of population and megawatt production in each region.

The Niagara Power Project, NYPA's largest power generator,  produces 2,400
megawatts of electricity compared with the St. Lawrence  project's 800
megawatts. The Niagara Power Project boundary  envelopes 3,222 acres
compared with 8,762 on the St. Lawrence River,  according to data provided
by NYPA.

In 2004, the U.S. Census estimated the population of Erie County at
936,300, Niagara County at 218,000 and St. Lawrence County at 111,300.

Regardless of the basis for comparison -- capacity, population or  land -- 
Mr. Kaneb argued the most basic talking point should be payments  in lieu
of taxes to the north country communities.

  "Don't throw apples and oranges at me. All I know is this  dam is
sitting out there and they're not paying taxes," he  said.

The group hopes any renegotiation will move forward with a  qualified team
that could include north country representatives,  attorneys and
professional advisers.

  "It is so blatantly inequitable and the politicians and  everyone else
are realizing how badly the north country is being  treated," Mr. Kaneb
said. "The Advocacy Group is pleased that  our representatives are being
very supportive and standing up with  us."

This week members of the task force met privately with Assemblyman  Darrel
J. Aubertine, D-Cape Vincent, in Waddington. Mr. Aubertine, who  was not a
state representative at the time of St. Lawrence-FDR licensing  talks,
recently wrote a letter to the Power Authority with Assemblywoman  Dierdre
K. Scozzafava, R-Gouverneur; state Sen. James W. Wright,  R-Watertown, and
state Sen. Raymond A. Meier, R-Western. The letter  requested the
rationale behind negotiations in the Niagara Power Project  to give the
leaders a basis of comparison.

Rep. John M. McHugh, R-Pierrepont Manor, also has taken a stand  against
what he considers inequity between the agreements and is calling  for NYPA
to return to the bargaining table.

  "It's a bizarre development that becomes even more  bizarre when they
try to explain it," Mr. McHugh said. "This  is a matter of impact. That
you base these agreements on megawatts is  nonsense."

Mr. McHugh stressed he is not calling for the Niagara settlement to  be
reduced, nor the St. Lawrence settlement to be matched  dollar-for-dollar.
The settlements should mirror each other in terms of  impact, which he
argued was greater on the St. Lawrence with the land  taken for the
project in the 1950s and the controlled water flow that  affects
recreation on the river.

The congressman has inquired how FERC might get involved. He  expects a
response this week. In the meantime, he's offering his  support to state
leaders and urging NYPA to correct the agreement.

  "NYPA can regain their senses and their sensibility come back  and
reopen the settlement with St. Lawrence and give what was promised  all
along," Mr. McHugh said.

To see more of the Watertown Daily Times, or to subscribe to the
newspaper, go to http://www.wdt.net.

Copyright (c) 2005, Watertown Daily Times, N.Y.

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