July (pdf) - New York Power Authority

PART 1
of the
OFFICIAL STATEMENT
of the
POWER AUTHORITY OF THE STATE OF NEW YORK
$___,___,000
REVENUE BONDS
$___,___,000 Series 2011 A
$___,___,000 Series 2011 B (Federally Taxable)
This Official Statement provides certain information concerning the Power Authority of the State of
New York (the ‘‘Authority’’) in connection with the issuance of the Authority’s Series 2011 A Bonds
(the ‘‘Series 2011 A Bonds’’) and Series 2011 B Bonds (the “2011 B Bonds” and collectively with the Series
2011 A Bonds, the “2011 Bonds”). This Official Statement is dated September __, 2011 to reflect the
execution of a Contract of Purchase for the 2011 Bonds on that date. The 2011 Bonds are authorized to be
issued pursuant to the Power Authority Act of the State of New York (the ‘‘State’’), Title 1 of Article 5
of the Public Authorities Law, Chapter 43-A of the Consolidated Laws of the State of New York, as
amended from time to time (the ‘‘Act’’), and the Authority’s ‘‘General Resolution Authorizing Revenue
Obligations,’’ adopted on February 24, 1998, as amended and supplemented, including, in regard to the
2011 Bonds, an Amended and Restated Ninth Supplemental Resolution adopted on July 26, 2011, which
authorized the issuance of the 2011 Bonds. The General Resolution Authorizing Revenue
Obligations, as amended and supplemented, is herein collectively referred to as the ‘‘General
Resolution.’’ The outstanding bonds, notes, and other obligations (including the 2011 Bonds) of the
Authority hereafter issued as parity obligations and outstanding pursuant to the General Resolution are
referred to herein as the ‘‘Obligations.’’ All words and terms which are defined in the General
Resolution are used herein as so defined.
INTRODUCTION
The Authority is a corporate municipal instrumentality and political subdivision of the State created
in 1931 by the Act, which has its principal office located at 30 South Pearl Street, Albany, New York
12207-3425. The Authority generates, transmits and sells electric power and energy, principally at
wholesale, as permitted or required by applicable law. The Authority’s primary customers are
municipal and investor-owned utilities and rural electric cooperatives located throughout New York State,
high load factor industries, other businesses, various public corporations located within the metropolitan area
of New York City, including The City of New York, and certain out-of-state customers.
The Authority owns and operates five major generating facilities, 11 small electric generating
facilities, and five small hydroelectric facilities, with a total installed capacity of 6,054 megawatts (‘‘MW’’),
and a number of transmission lines, including major 765-kilovolt (‘‘kV’’) and 345-kV transmission facilities
(see ‘‘PART 2—THE AUTHORITY’S FACILITIES’’).
The Authority’s generating facilities consist of two large hydroelectric facilities (Niagara and St.
Lawrence-FDR), a large pumped-storage hydroelectric facility (Blenheim-Gilboa), two gas-and-oil-fired
facilities (Flynn and the combined-cycle electric generating plant located in Queens, New York,
referred to herein as the ‘‘500-MW Plant’’), 11 small electric generating facilities, and various small
hydroelectric facilities. The Authority’s net generation in 2010 by energy source was as follows:
hydroelectric 82%; and gas/oil 18%. In 2010, the Authority generated approximately 15% of the electric
energy used in New York State. The Authority also supplied a significant portion of its customers’ needs
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