Directs the New York power authority to conduct audits of certain entities who were parties to the federal relicensing agreement approved by the Federal Energy Regulatory Commission

1 Co-sponsor

• John L. Sampson

BILL NUMBER:S4948A

Title of bill

An act to amend the public authorities law, in relation to duties of the New York power authority

Purpose or general idea of bill

To authorize and direct the New York Power Authority (NYPA) to conduct audits of those entities that received power allocations or monetary payments associated with the relicensing agreement adopted on September 1, 2007 in relation to the Niagara Power Project in Lewiston.

Summary of specific provisions

Section 1: Authorizes the authority to conduct an audit of those entities who received benefits associated with the relicensing of the Niagara Power Project. The audit may be conducted by the Authority's staff or an RFP may be issued to select a private firm. All of the beneficiaries of power or money associated with relicensihg are also required to fully cooperate. NYPA is then required to provide a report to the Governor and the Legislature on the results of the audits conducted by March 1, 2014.

Section 2: Sets forth the effective date.

Justification

As of January 2013, NYPA has provided over $208 million in benefits to Western New York in support of its operating License for the Niagara Power Project. These benefits include monetary payments to settlement partners consisting of local municipalities, state agencies, an Indian nation, school districts, and committees supporting the development of the Niagara River Greenway. The amount also includes payments by NYPA for the construction of recreational projects and ecological enhancements related to the License. In addition to monetary benefits, 32 MW of low-cost hydropower has been allocated to several settlement partners saving the recipients as much as 75% of the cost of energy. These benefits are an important investment in Western New York's economy, and therefore it is especially important to account for the use of these resources, and evaluate how effectively they have been managed. Questions have consistently been raised about the use of funds by the Niagara Greenway Commission, as well as those municipalities and public entities that have benefitted from low cost power and cash payments. Efforts to compile this information have not been successful up to now because NYPA does not have the authority to conduct a full audit, and also lacks the authority to compel those who benefit from the relicensing agreement to comply with requests for information. This bill provides the appropriate authority and aims to bring transparency and accountability to the massive outlays of power and money that have resulted from the relicensing agreement.

Prior legislative history

New Bill.

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately.