Bethlehem Steel Supports Re-licensing
of the Niagara Power Project
For Immediate Release
Public Relations Division
Public Affairs Department
1170 Eighth Avenue
Bethlehem, PA 18016-7699
(610) 694-3711 - Phone
(610) 694-1509 - Fax
Speaking in support of the re-licensing of the Niagara Power Project to the New York Power Authority (NYPA), Ray David, general foreman, maintenance and services at Bethlehem's Galvanized Products Division, in nearby Lackawanna, told the committee:
"The importance of the price of electricity for basic manufacturing facilities cannot be overstated. For those of us who must compete in the worldwide economy, the pressure to reduce costs and boost productivity never ceases. While New York has much to offer businesses, overall costs imposed on industry in New York are simply higher than costs in most other states. The one bright spot in our cost structure in operating in the State of New York is the low cost hydroelectric power supplied by the NYPA."
The NYPA operates the Niagara Power Project under license from the Federal Energy Regulatory Commission (FERC). That licensing agreement is up for renewal in 2007 and Bethlehem Steel and several other western New York companies and manufacturing facilities are voicing early concerns over possible restructuring of the licensing agreement that could result in higher energy costs.
Mr. David told the Commission, "We cannot stress strongly enough the importance of the relationship between the price of electricity and the existence of a strong industrial-based, private sector economy. The Niagara Power Project 'Replacement' and 'Expansion' power, allocated to 101 industrial firms under long-term contracts, and Power for Jobs allocations provided under three-year-contracts to 78 recipients, are linked to the creation or protection of more than 62,000 jobs in western New York. It clearly is an essential ingredient of a quality economic development portfolio."
Bethlehem Steel's area operations, which include a Coke Oven Division and a short-haul railroad, employ more than 825 highly skilled people, with a total payroll (including benefits) of more than $61 million annually. Bethlehem's area operations pay annual state and local taxes of $5.6 million.
Mr. David urged the Assembly Committee to support the re-licensing of the Niagara Project to the New York Power Authority and to resist changes in the agreement that might bring about higher costs for power in western New York.
"Low-cost, hydroelectric power is the engine that drives the local economies in Erie, Niagara and Chautauqua counties," Mr. David said. "The 'Replacement' power and 'Expansion' power generated at the Niagara Project, resulting from the foresight of the United States Congress and the New York Legislature, has fostered both job retention and job creation for many thousands of upstate New York residents."