Executive Speeches

Remarks of Louis P. Ciminelli, chairman of the New York Power Authority, at the Waterpower XIII Conference, Buffalo, New York

July 29, 2003 

Good afternoon. I’m Lou Ciminelli, chairman of the New York Power Authority, and I’m delighted to welcome you to my hometown—Buffalo, New York.

Before Buffalo became famous for ‘chicken wings’ or ‘beef on weck’… before we became home to the Bills or the Sabres… Buffalo was famous for waterpower. It was the first truly electrified city. With its pioneering use of hydropower at the beginning of the last century, Buffalo outshined Paris as the City of Light… and Western New York became a great magnet for industry.

The New York Power Authority was to become a major part of Western New York’s hydropower heritage as the primary developer of the region’s waterpower potential.

The Niagara Power Project, built by the Power Authority four decades ago, provides the lowest-cost power in the Empire State. Today, it helps to protect more than 43,000 jobs in Western New York.

The Niagara Project is only a short drive north of here—and I hope many of you had the chance to tour it yesterday.

When completed in 1961, it was the largest hydropower complex in the Western Hemisphere.

In addition to the Niagara Project, the Power Authority owns and operates the St. Lawrence-FDR project in New York’s North Country… five small hydroelectric facilities throughout the state… and a pump-storage facility in the Northern Catskills. Hydropower accounts for over 80 percent of our installed capacity.

I am proud to say that these projects not only protect the environment by producing emission-free, renewable energy… they also enhance it with acres of beaches, parks, campgrounds and picnic areas for the public’s enjoyment. We've planted trees and shrubs as forage for deer, sponsored fish stocking programs and other wildlife preservation efforts. Our programs, I’m told, helped set the standard for hydroelectric projects across the nation.

Here in Western New York, we are in the process of seeking a new 50-year license for the Niagara Project from the Federal Energy Regulatory Commission.

A survey conducted last year listed the availability of low-cost hydropower as one of the three most-positive aspects of doing business in Western New York. That same survey, however, ranked uncertainty about future hydropower supplies and costs as one of the top three issues impacting the economy’s long-term sustainability.

It’s clear that Niagara hydropower is absolutely critical to strengthening the economy on the Niagara Frontier and setting the stage for future growth. Our ability to use the power for these purposes will depend in large part on what happens in the relicensing process.

To learn more about that subject, I hope you will attend tomorrow morning’s session on NYPA’s Alternative Licensing Process.

We recently passed a major milestone in Niagara re-licensing when we concluded a series of public scoping sessions.

During the scoping process, we were able to reach agreement on the issues to be analyzed and on the type of information to be obtained. While a lot of work lies ahead, we’ve made a good start toward productive studies and settlement discussions next year.

That will put us on track to submit our completed license application and environmental assessment to FERC in 2005 and—we hope—to receive the new license in 2007.

The New York Power Authority takes very seriously its commitments to the communities and the environment. But the only way to pay for these commitments is through our rates.  Ultimately, the issue isn’t what the Power Authority is willing to spend... it’s what our customers are willing to accept by way of potential rate increases.

With that in mind, we’ve been closely following the progress of energy legislation in Washington. We’re encouraged that the House of Representatives has approved an energy bill which includes a provision that would require federal agencies to consider costs when proposing conditions to hydro licenses. We certainly hope the Senate approves similar reforms.

Considering the significant role waterpower has played in the history of Western New York, you could find few better sites for this gathering. Hydropower has been a key to Western New York’s progress. And we’re working to be sure it continues to contribute to the region’s prospects for prosperity.

We look forward to working with you at this conference to learn new ways to preserve and enhance the great resource that waterpower provides.

Thank you all very much for your attention. Please enjoy your stay in Western New York.

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