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Power Matters
Yesterday the Partnership provided testimony to the “Temporary Commission on the Future of New York State Power Programs for Economic Development.” This commission was established by Governor Pataki to make recommendations by year-end about state programs that use discounted electricity as a tool to entice companies to New York State, or to facilitate expansion and job creation at existing New York businesses. (Despite having Niagara Falls in our backyard, New York State has among the nation’s highest commercial electricity rates).
You can read the Partnership’s full testimony here.
In brief, the Partnership, representatives from local companies, elected officials, the Niagara USA Chamber (our partner on this issue) and local economic development professionals made a strong case that a Western New York asset that should entice economic development here – low cost hydropower and associated proceeds from the Niagara Power Project – must be protected here, expanded here, and allocated by a local body.
Furthermore, we stressed that an evolution must take place to ensure that investment, not jobs alone, is valued. One local small business owner testified yesterday that in our region “maintaining” an existing number of employees is a sign that a company is doing well. “Hiring new people just isn’t in the cards,” she said. That’s precisely why we asked the commission to value investments a company makes that will lead to its long-term longevity in our region. Allocations should facilitate Buffalo Niagara companies’ ability to be productive and competitive – after all, supporting stable employers and taxpayers is good state policy.
In addition, as traditional manufacturing industries decline in our region, we must be poised to embrace emerging industries – large power users like 24/7 data centers -- and welcome their investments, jobs and economic impact on our local communities. Companies that “look and act” like those that were sold low cost power in the 1950s don’t exist anymore. Criteria need to evolve to match our current economic realities.
Finally, we voiced our support of redirecting Rural and Domestic power (R&D), which is currently diluted statewide most often in the form of small residential discounts, for economic development purposes instead in the current R&D residential service areas. (We believe the creation or retention of a $40,000 job outweighs the $25-$100 per year a resident might save from R&D’s current use, especially when the buying power multiplier of that new job is also factored in).
If you’ve had experience with a New York power program that you’d like to share with the commission, written testimony can be submitted to it through the end of this month. Please contact Hadley Pawlak at hpawlak@thepartnership.org for details on how to submit.
Sincerely,
Andrew J. Rudnick
President & CEO
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Power Matters
