Minutes of the Annual Meeting of the Power - New York Power ...

included in the rate base in each year the funds are disbursed. Part of the compliance cost is a $2
million annual payment to local communities, as shown as an expense in Exhibit “A” (page 1,
line 10).
The Niagara Project license expires on August 31, 2007. At their June 28, 2005 meeting, the
Trustees authorized the filing of a relicensing application with the FERC. On August 18, 2005
the Authority filed the Application with FERC. On August 19, 2005, the Authority filed its Offer
of Settlement with FERC, which consisted of four separate agreements:
• Relicensing Settlement Agreement Addressing New License Terms and Conditions;
• Host Community Relicensing Settlement Agreement Addressing Non-License Terms and
Conditions;
• Relicensing Settlement Agreement Among the Power Authority of the State of New
York, the State of Connecticut, the Commonwealth of Massachusetts, the State of New
Jersey, the State of Ohio, the Commonwealth of Pennsylvania, the State of Rhode Island
and the State of Vermont; and
• Relicensing Settlement Agreement between the Power Authority of the State of New
York and the Tuscarora Nation.
Since its filing, the Offer of Settlement has been supplemented twice with the Niagara University
Relicensing Settlement Agreement and the Erie County/City of Buffalo Relicensing Settlement
Agreement ($2 million per year for projects related to the Niagara River Greenway within
Buffalo and Erie County and $3.5 million per year to the Erie Canal Harbor Development
Corporation for waterfront development). These Agreements were filed with FERC on May 26,
2006 and June 30, 2006, respectively, after being approved by the Trustees at their meetings of
May 23, 2006 and June 27, 2006, respectively. At the October 24, 2006 meeting, the Trustees
authorized capital expenditures for costs related to compliance with the anticipated new license
for the Niagara Project and for costs associated with implementing settlement obligations
associated with relicensing the Project for the period 2007-2057.
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