July (pdf) - New York Power Authority

the costs of such pending claims, or additional similar claims which may arise in the future, it does not
believe that such claims individually or in the aggregate will materially adversely affect its financial position.
(d) State Pollutant Discharge Elimination System Permit
A renewed New York State Pollutant Discharge Elimination System (‘‘SPDES’’) permit was issued for
the Authority’s Blenheim-Gilboa Project in October 2002. This permit renewed the previously issued permits
for the plant, including certain provisions of the permit that the Authority requested be eliminated as a
permit condition. Particularly, the Authority had objected to a requirement that it file an application for a
SPDES permit for the discharge from the plant’s upper reservoir to its lower reservoir on the ground that
the plant’s Federal license obviated the need for such a permit. Subject to further administrative or judicial
review, should the Authority’s objection be finally denied, such circumstances could adversely impact
operation of the facility by subjecting water flows at the plant to State regulation, which could affect power
generation.
(e) American Eel litigation in Canada
In April 2007, a number of fishermen and fishing companies from Ontario, Canada, filed a lawsuit in
Ontario Superior Court of Justice against Hydro Quebec, Ontario Power Generation, and the Authority.
Plaintiffs allege, among other things, that hydroelectric facilities, including the St. Lawrence-FDR Project,
have caused a decline in the American Eel population which has unreasonably interfered with plaintiffs’
fishing licenses. In 2004, the Ontario Ministry of Natural Resources reduced the quota for American Eel
fishing to zero. The lawsuit seeks $5 million in damages plus certain interest, costs, and taxes. Hydro Quebec
has accepted service of the complaint, is defending the action, and has filed a demand for particulars. The
Authority is represented by Canadian counsel in the matter but has not been served with the complaint.
Miscellaneous
Actions or claims against the Authority are pending for the taking of property in connection with its
projects, for negligence, for personal injury (including asbestos-related injuries) for environmental
matters, in contract and for other matters, all of which will in the opinion of the Authority be disposed of
within the amounts of the Authority’s insurance coverage, where applicable, or the amounts which the
Authority has available therefore and without any material adverse effect on the business of the Authority.
App. D-3