July (pdf) - New York Power Authority

(1) establishment of a $24 million fund for fish enhancement and mitigation to be used for
research, construction and operation of projects benefiting fisheries in the Lake Ontario/St.
Lawrence River basin;
(2) construction of a fish ladder to assist the upstream passage of American eel;
(3) allocation of 34.5 MW of power from the Project to the states of Vermont, Rhode Island,
Connecticut, New Jersey, Pennsylvania and Ohio;
(4) development of various habitat improvement projects within the Project boundary;
(5) construction of new recreational facilities and rehabilitation and expansion of existing
recreational facilities, including additional trails, camping facilities and boat launches; and
(6) a shoreline management plan to effectively maintain eroding shorelines in the Project’s
boundary.
The Authority estimates that the total costs associated with the relicensing of the St. Lawrence-FDR
Project for a period of 50 years will be approximately $210 million, of which approximately $181
million has already been spent. These total costs could increase in the future as a result of authorities
reserved by FERC in the New License. A portion of these costs is reflected in the Authority’s estimate of its
capital requirements for the period 2011-2015 (see ‘‘PART 2—CERTAIN FINANCIAL AND OPERATING
MATTERS—Projected Capital and Financing Requirements’’). The Authority is collecting in its rates for
the sale of St. Lawrence-FDR power amounts necessary to fund such relicensing costs.
St. Lawrence-FDR Modernization Program
The St. Lawrence-FDR Project commenced commercial operation in 1958. The Authority’s Trustees
in 1997 approved initiation of a program to extend the life of, and modernize, the generation equipment at the
Project, including turbines, new generation control systems, generator exciters, generator circuit breakers, and
rotor pole modifications (the ‘‘Modernization Program’’).
The Authority expects that installation of new turbines will result in a two-to-four percent increase in
efficiency. In addition, the Modernization Program is expected to accomplish the following: reduce the
probability of catastrophic equipment failures; result in a renovated plant that is maintainable for another 50
years; reduce maintenance requirements of equipment; and render the Project capable of improved response.
The Modernization Program commenced in 1998 and is expected to be completed in 2013. The
Program’s schedule allowed four years for engineering through the testing of a prototype unit and then
rehabilitation of approximately three units every two years until completion. The Authority believes this
timetable to be optimal for minimizing generation revenue loss while the units are being modernized.
Modernization of 14 of the 16 units has been completed.
The estimated cost of the Modernization Program is $281 million, of which approximately
$222 million has been expended.
Niagara
The Niagara Project consists of a water intake, waterways, a generating plant (the ‘‘Robert Moses
Niagara Power Plant’’), a pump-generating plant (the ‘‘Lewiston Pump-Generating Plant’’) with storage
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