Published: December 15, 2006 10:52 pm            

AES BID: Schumer says NRG Huntley will get plant

Did NRG win its bid for a new power plant?

Rumors are swirling over a release sent out by Sen. Charles Schumer’s office Friday afternoon indicating the Huntley station’s bid won.

The statement read: “Today, Senator Charles E. Schumer released the following statement on NRG being awarded the Advanced Clean Coal Power Initiative Contract... ‘This project is a triple win for Western New York: It creates jobs, reduces pollution and produces more efficient, cost effective energy for area consumers and companies.”

But then the office’s position was quickly recanted, perhaps amid speculation that Republican Gov. George Pataki was upset that Schumer, a Democrat, made the announcement first. A second statement to Greater Niagara Newspapers read: “Schumer has been an active supporter of tax credits for the NRG Huntley Repowering project in Tonawanda. ‘This project is a triple win ... ”

NRG Huntley, AES Somerset and Jennison plants as well as two other companies entered bids for an advanced clean-coal plant under Pataki’s Clean Coal Initiative. The program includes plans for at least one clean coal plant with research and development facilities.

The New York Power Authority Board of Trustees is scheduled to meet Tuesday to discuss their choice. The final decision is supposed to be made by the end of the year.

Pataki’s office did not release any statements or announcements regarding the Clean Coal Initiative.

Most officials said they had only heard the news from media questions, not government sources, including NRG Energy Inc.’s manger of communications Lori Neuman.

“This is the first we’ve heard of it,” she said. “The decision is coming on Tuesday, and we’re waiting like everyone else is waiting.”

So is AES.

“I would urge people to note that the board of trustees does not meet until Tuesday,” said AES project manager Jon Reimann. “We are proceeding on the notion that we have a very competitive bid. I think we should just all take a breath and wait until Tuesday.”

State Sen. George Maziarz, R-Newfane, a staunch advocate for the AES bid, called Schumer’s announcement “extremely premature.”

“The Power Authority Board of Trustees isn’t even meeting until Tuesday to make a recommendation,” Maziarz said. “I think Sen. Schumer is attempting to get press to get NRG to jump out in front. It’s really not helpful to the process.”

Maziarz, who was in the state capital Friday night, said he is working hard to get AES the second plant. The senator took the lead last month creating the public support group Choose Niagara Now. He collected about 10,000 letters of support for another plant in Somerset.

He said he believes the Schumer announcement may influence NYPA’s decision.

Speculation on when the announcement will be made has run rampant in recent weeks, but most agree that Pataki planned on making the announcement Wednesday at the chosen site.

That’s what leading Huntley advocate Erie County Legislature Chair Lynn Marinelli, D-Town of Tonawanda, said she heard, too.

“We’ve gotten word from (Town of Tonawanda Development Corp. Executive Director) Bob Dimmig that an announcement would be made on Wednesday,” she said.

Town of Tonawanda Supervisor Ron Moline indicated that, if the news were true, he was extremely pleased.

“It’s great news for the Town of Tonawanda, the Kenmore-Town of Tonawanda School District and for Erie County,” he said. “We were competing against four other plants state wide and, as a result of this designation, we’re going to see up to 1,000 jobs in this area over the next several years.”

In Somerset, Supervisor John Sweeney said he believes he has already heard the news. Town attorney Edwin Shoemaker called him Friday afternoon indicating NRG had been chosen for the project.

“On behalf of the town, I’m very pleased that the NRG Huntley plant is successful in awarding this bid,” Sweeney said. “I’m excited the plant will stay in Western New York.”

Sweeney is not so thrilled with a tax break given to AES.

“I’m quite disturbed that the (Niagara County Industrial Development Agency) granted a tax cut on the existing AES plant with no new jobs,” Sweeney said. “Now the county, Town of Somerset and Barker Central School District will have to make up for that.”

Shoemaker and representatives from the Barker Central School District and Niagara County have been spending the last few weeks trying to create a new formula to distribute AES Somerset’s payment-in-lieu-of-taxes (PILOT) agreement. Plant officials requested the tax break before submitting a bid for the advanced clean coal plant, saying they needed “tax certainty” to better their chances of winning.

Numbers accepted between all three taxing jurisdictions project a total $43.4 million total loss over the life of the 12-year PILOT. The school district has an estimated total loss of $23.5 million, while the town stands to lose about $3 million and the county roughly $14.4 million.

County officials, like IDA Chairman Henry Sloma, are taking a wait-and-see approach until Wednesday.

Thom Kraus, president of the Niagara USA Chamber, said that if the news was true, it was unfortunate because of the chamber’s support of the AES Somerset plant.

“If, in fact, it’s true, we are disappointed,” he said.

Contact Tasha Kates at 439-9222, Ext. 6241.

        

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