Authorizes the New York power authority to issue bonds for certain projects involving major electric generating facilities

5 Co-sponsors

• William J. Larkin Jr.
• Carl L. Marcellino
• Michael H. Ranzenhofer
• Patty Ritchie
• Catharine Young

BILL NUMBER:S2521B

Title of bill

An act to amend the public service law and the public authorities law, in relation to certain energy projects

Purpose

To authorize the New York Power Authority (NYPA) to issue bonds for certain projects involving major electric generating facilities.

Summary of provisions

Section 1 of the bill amends the public service law to authorize the department of public service to request information from NYPA in relation to certain energy projects for which NYPA has issued bonds.

Section 2 of the bill amends the public authorities law to authorize NYPA to issue bonds for certain energy projects.

Section 3 is the effective date.

Justification

Many power plants in NYS are contemplating repowering or other investments in infrastructure in order to meet new environmental standards and to improve their competitive position in the marketplace. Some power plants are even considering construction of new electric generating units on the same or adjacent property in order to remain competitive. Enhancing competition and improving environmental compliance are worthy goals that should be encourage and incentivized.

Unfortunately, many of these power plants are prevented from taking steps to repower or otherwise improve their infrastructure and environmental profile because of the high costs associated with doing so. By allowing NYPA to issue bonds for these types of projects, power plants will be able to lower the cost of repowering and upgrading infrastructure. This lower cost incentive will encourage power plants to make these investments which will result in a cleaner, stronger and more modem generating fleet.

Further, these power plants often represent a significant portion of the tax base for the municipality where they are located. Loss of such tax base will be devastating for these communities. By lowering the cost of infrastructure investments, this legislation will allow power plants to become more competitive and remain in operation for a longer period of time. This is a significant benefit for our local communities.

Prior legislative history

New bill.

Fiscal implications

None.

Effective date

This act shall take effect on the ninetieth day after it shall become a law.