National Grid, IPP drop objections to North Country Power Authority

Creation of the long-sought North Country Power Authority could come early next year as changes to the enabling state legislation have led National Grid and the Independent Power Producers of New York to withdraw objections.

"That should make it easy to go through the Assembly," said Robert C. Best Jr., chairman of Alliance for Municipal Power, which has proposed creation of the authority as the best way to establish a municipal electric system for parts of St. Lawrence and Franklin counties. "We've been at this for 15 years and every year we get a little stronger."

The Alliance for Municipal Power was formed to take over National Grid's system in about two dozen communities. Supporters believe a public utility similar to Massena Electric Department could bring down rates. Having the Legislature authorize an authority would give it the ability to finance and operate a municipal electric company.

The state Senate already has approved legislation to create the authority. If the Assembly goes along, the next steps would be to name members to the authority and begin negotiations with National Grid on what the authority would acquire and at what price.

The compromise reached on the legislation won't hinder the authority from its goals, Mr. Best said.

"National Grid asked us to limit our use of eminent domain to not take transmission lines larger than 22,000 volts. IPPNY asked that we not use eminent domain to take generating facilities. We might still buy one but we would not use eminent domain," Mr. Best said. "Our main interest has always been the distribution system so we thought this was fair."

The Senate bill was sponsored by Darrel J. Aubertine, D-Cape Vincent. The Assembly bill was introduced by Addie J. Russell, D-Theresa. A spokeswoman for National Grid said the utility withdrew its objections, but still has reservations.

"National Grid values our customers in the north country and believes that customers are best served by a company with established practices and the resources necessary to provide reliable services and infrastructure investments," spokeswoman Courtney A. Quatri said. "As the energy industry faces technological advances, we believe National Grid is best positioned to service utility customers in this evolving environment."

The Independent Power Producers, in a memorandum on its Web site, also took no position on the bills, but was wary of its long-range meaning.

"IPPNY cautions the Legislature and governor in establishing a precedent that allows the North Country Power Authority to construct and generate electricity, among other powers, in a manner that is inconsistent with the competitive electricity marketplace by creating tremendous competitive disadvantages for private generating companies that do not have its tax-exempt financing ability with a state guarantee of non-impairment of its revenues," the memo states.

"The authority even would have a market advantage over other public power authorities such as the New York Power Authority and the Long Island Power Authority, to the extent that those entities obtain their new power supplies primarily through competitive procurement instead of building new generation."