July (pdf) - New York Power Authority

eservoir, and power transformation and transmission facilities. It is located at Lewiston, New York, and
was constructed to implement a 1950 treaty (the ‘‘1950 Treaty’’) between the United States and Canada.
Power was first generated in January 1961, and the final generator went into commercial operation in
October 1962.
The Robert Moses Niagara Power Plant contains thirteen hydro-turbine generators, with a
nameplate capacity totalling 2,429 MW, and the Lewiston Pump-Generating Plant contains twelve hydroturbine
motor-generators, with a nameplate capacity totalling 240 MW. The nameplate capacity of Niagara is
2,669 MW.
Pursuant to a FERC-approved license amendment, the Authority, in December 2006, completed a
$298 million upgrade (including licensing and preliminary engineering costs) of the 13 generating units at the
Robert Moses Niagara Plant. As a result of this work, the Niagara Project is able to produce approximately
32 additional MW of power that is available on a firm basis.
In June 2010, the Authority’s Trustees approved a $460 million Life Extension and Modernization
(“LEM”) Program at the Lewiston Pump-Generating Plant. The work to be done includes a major
overhaul of the plant’s 12 pump turbine generator units. The LEM Program will increase pump and
turbine efficiency, operating efficiency, and the peaking capacity of the overall Niagara Project. The
Authority intends to file an application with FERC for a non-capacity license amendment in connection
with the program. The unit work is scheduled to begin in late 2012, with the final unit being completed in
2020.
Niagara Relicensing
In 1958 the Federal Power Commission issued the Authority a license for a period of 50 years,
effective as of September 1, 1957 and expiring August 31, 2007, for the construction, operation and
maintenance of the Niagara Project. Under the NRA, pursuant to which the license was granted, the
Authority must give preference to public bodies and non-profit cooperatives in disposing of half of the
Project’s total output. A reasonable amount of such total output subject to preference (not in excess of 10%
of total output) must be made available to neighboring states.
The Authority filed its application for a new Niagara Project license (‘‘Application’’) with FERC on
August 18, 2005. By order issued March 15, 2007, FERC issued the Authority a new, 50-year license for
the Niagara Project effective September 1, 2007, and approved various settlement agreements addressing
numerous topics (“Settlement Packages”) as set forth below. In mid-April 2007, two petitions for rehearing
were filed by certain entities with FERC regarding its March 15, 2007 order, which petitions were denied by
FERC in its order issued September 21, 2007. By decision dated March 31, 2009, the U.S. Court of
Appeals for the District of Columbia Circuit denied a petition for review of FERC’s orders filed by
certain entities, thereby concluding all litigation involving FERC’s issuance of the new license. A
description of the Settlement Packages follows.
(1) Greenway
In 2004, legislation was enacted into law creating the Niagara Greenway Commission (‘‘Greenway
Commission’’), a new entity charged with developing and implementing a plan to create a greenway that
will ‘‘enhance waterfront access, complement economic revitalization of the communities along the
river, and ensure the long-term maintenance of the greenway’’. The aggregate amount of the
greenway Settlement Package funds is calculated by assuming that $7 million per year will be made
available for the term of a 50-year license. The net present value of this Settlement Package is
estimated at approximately $113.3 million. (All dollar amounts in these Settlement Packages
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