Oswego County Legislature Chairman's Office, 46 East Bridge St., Oswego, NY 13126

["Your County Matters!" Main Menu] [Oswego County Homepage]


July 7, 2004

County Moving Ahead on Low-Cost Power Program

Is lower-cost electricity enough of an incentive to attract new companies and jobs? That was a question of debate when the nuclear plants' tax agreements were negotiated four years ago. The question will be put to the test over the next six years as Oswego County embarks on an unprecedented low-cost power program.

The county's tax agreement with Entergy Nuclear Northeast, owner of the James A. FitzPatrick Nuclear Power Plant at Nine Mile Point, requires Entergy to provide the county with up to 10 megawatts of electricity, at $32 per megawatt-hour, each year from 2005 to 2010. That price is well below current market rates.

The agreement requires that the low-cost power be used by government or businesses, using the state's Power For Jobs program as a model. Power For Jobs provides new or expanding companies discounted power if they are creating or retaining jobs. It is estimated that one discounted megawatt is equal to an average of 100 new or retained jobs.

The prospect of a "local power for jobs" program just for Oswego County is exciting and full of promise. It is also full of questions. How do we get the power from Entergy to businesses? How do we select businesses in a fair manner? Are there tariffs or other legal issues that must be addressed? How are companies billed? How are their power usages monitored and and who verifies that new jobs are created? Who will administer and oversee all this?

To answer these questions and recommend a course of action, a special committee was created last year. The committee has been working for the past year to sort through the immense complexities of the energy industry and determine the best way to use the 10 megawatts to benefit taxpayers, residents and businesses.

The committee recently completed its work and issued a report of recommendations, which was approved by the Legislature's General Government Committee. The Oswego County Public Utility Service, created in 1983 but never put into operation, will be activated and oversee the power program. The Oswego County Public Utility Service will accept and review companies' applications for low-cost power to ensure fair and impartial decisions. Oswego County Public Utility Service will only consist of a small board with legislative representation and members from the private sector with experience in the energy industry.

To handle the day-to-day administration of the power allocations and billing, the county will contract with an energy service company. Energy service companies are independent power suppliers with expertise in marketing and supplying electricity to commercial and industrial customers.

Unfortunately, the tax agreements prohibit the county from giving low-cost power to residents. To ensure that everyone benefits to some degree from the low cost electricity, the committee recommends using part of the energy to meet Oswego County government's electrical demand, thereby lowering costs and passing savings on to all taxpayers.

The low-cost energy program will be evaluated annually to determine its effectiveness as an economic development tool.

As a former member of the special committee in 2003, I know their research was no easy job. I'd like to express my appreciation to Legislator Greg Osetek, District 15 (Oswego), committee chairman; and legislators Jack Beckwith, District 21, (Hannibal, Granby) Tom Bullard, District 14 (Scriba, Oswego); Leonard Ponzi, District 17 (Oswego, Oswego Town); Arthur Ospelt, District 12 (Schroeppel); and David Waters, District 3 (Richland). My thanks also to L. Michael Treadwell, director of Operation Oswego County, for his advice to the committee.

I'm looking forward to seeing this new project through. A local power for jobs program is uncharted territory, and there may be a few bumps along the road. But it is one more example of how Oswego County government is taking new and innovative approaches to provide a more business-friendly environment of opportunity and growth.

Questions about the Oswego County Legislature?