New coalition backs AES on power plant
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Maziarz, head of group, calls Niagara 'best spot' for $1 billion project
By BILL MICHELMORE
NEWS NIAGARA BUREAU
11/9/2006
AES Somerset won the backing Wednesday of a new coalition of Niagara County leaders in the company's bid to build a $1 billion clean coal-fired power plant on the shore of Lake Ontario.
"Niagara County is the best spot in all of New York State for this investment," said State Sen. George D. Maziarz, R-Newfane, and chairman of a group calling itself Choose Niagara Now.
The Niagara County Legislature on Wednesday passed a resolution in support of Maziarz's coalition. AES Corp. is competing with four other companies to land the new plant, which would generate 1,000 construction jobs over four years and add 120 permanent jobs to the 148 now in the company's existing plant in Somerset.
The winning bid will be chosen by the New York Power Authority, which will buy the electricity the plant generates. The Power Authority expects to announce its choice by Dec. 31.
AES, the largest taxpayer in Niagara County, chose its 1,800-acre Somerset site along Lake Road for the new plant over six other properties it has in the state, on the condition it would receive hefty tax breaks from the Niagara County Industrial Development Agency on its existing plant.
The IDA approved a 12-year payment in lieu of taxes, or PILOT, three weeks ago amid heated opposition from the Barker Central School District and the Town of Somerset.
"This was a somewhat unprecedented move by the IDA to grant this PILOT," Henry M. Sloma, chairman of the county agency, told The Buffalo News Editorial Board on Wednesday. "But a $1 billion proposal doesn't happen very often in Niagara County."
Sloma, Maziarz and AES officials appeared before the Editorial Board. State officials have yet to release information about all of the bidders but have promised to do so today. NRG Energy, which operates the Huntley power plant on River Road in the Town of Tonawanda, is among the other bidders. The company submitted a bid to build a $1.5 billion plant on its Tonawanda property, using existing infrastructure there.
A new Somerset plant would be the largest private investment in county history. But if the site is not chosen, the pitch could cost an estimated $24 million in lost property taxes over the life of the PILOT for the Town of Somerset and the Barker School District.
Property taxes in Somerset will increase 44 percent as a result of the tax deal the IDA made with AES. To help offset that, Maziarz said, he will introduce a bill in the Senate to beef up state funding next year for the Barker School District. Based in Arlington, Va., AES has 30,000 employees and 123 power plants that generate electricity for 11 million customers in 26 countries. It has had a "long and stressful situation" with the Town of Somerset, said Sloma, referring to a 10-year lawsuit against the town seeking a reduced assessment on the existing coal-burning plant and three years of tax refunds.
The company said that it would drop the lawsuit as part of the deal with the IDA.
Maziarz said the economic spinoff to Niagara County and Western New York businesses from the new plant would be huge, since AES would buy the steel and other construction material from area companies.
"We believe this would be the catalyst for future development in the area," agreed Jon Reimann, AES project manager.
"The big thing is that it would bring hope to Niagara County," said Pierce, president of AES Somerset.
Heading the Choose Niagara Now group, after Maziarz and Sloma, are Clyde Johnson Jr., president of the Niagara County Building Trades Council; John Benoit, vice chairman of the Niagara USA Chamber; Brian Beakman, president of Local 966 of the International Brotherhood of Electrical Workers; and Robert Connelly, business manager of Laborers Local 91.
e-mail: bmichelmore@buffnews.com
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