Tags Posts tagged with "Repower"

Repower

by -
0 1250
The Port Jefferson power plant sits along the edge of Port Jefferson Harbor. Photo by Elana Glowatz

A provision in the new state budget sets aside $30 million that could support communities where a power plant has closed and stopped paying property taxes.

According to the budget bill that state lawmakers agreed upon last week, that sum would be available for a local government, school district or special district — such as a library or fire district — where an electric generating facility has stopped operating, causing a reduction of at least 20 percent of the money it owed through property taxes or payments in lieu of taxes, commonly known as PILOTs.

There are limits to the provision, however: The bill says the New York State Urban Development Corporation will distribute the relief funds on a first-come, first-served basis and will not offer the support to a specific group for more than five years. Additionally, in the first of the five years, the corporation will not award funding equal to more than 80 percent of the local entity’s lost revenue.

Port Jefferson Village could possibly be on the receiving end of some of the $30 million in the pot, dubbed the “electric generation facility cessation mitigation fund.” That community’s power plant — which company National Grid owns and operates, and sells the power generated to utility PSEG Long Island for distribution — is old and runs on antiquated technology. For the past several years, village residents have waited to learn the fate of the plant, whether it will be reconstructed to keep serving Long Island or dismantled.

A lot hangs in the balance for the plant’s neighbors: Property taxes from the site fund more than 40 percent of the local school district’s budget and a significant portion of the Port Jefferson Village budget.

“We’d soak up a lot of it,” village Trustee Larry LaPointe said about the relief fund, noting that his government’s budget gets about $1 million in property taxes from the local power plant in addition to the school district’s hefty share. “But we certainly appreciate any efforts” to help mitigate the impact on the community.

The state budget provision specifies that local entities seeking assistance, once a power plant’s owner serves official notice it plans to retire the facility, will be helped in the order they apply for relief, but only after the facilities go offline. The urban development corporation will decide the amount of the annual assistance payments based upon how much revenue is lost.

Port Jefferson schools currently get more than $18 million from the plant, between taxes and PILOTs. Superintendent Ken Bossert said, “We are hoping that a resolution can be found that will not place an unfair burden on the home and business owners … in order to maintain the excellence of the school district.”

Northport power plant. File photo

A new Huntington Town citizens group will boost a movement to upgrade the Northport power plant, independently studying the issue and submitting ideas to town officials.

The town board, on Tuesday, unanimously supported a measure co-sponsored by Huntington Town Supervisor Frank Petrone (D) and Councilman Mark Cuthbertson (D) to create the Repower Now Citizens Committee, a group of nine who will weigh in on an analysis the Long Island Power Authority and National Grid are conducting with respect to repowering, or upgrading, the plant.

Earlier this year, the state charged LIPA and National Grid with studying the feasibility of repowering the Northport power plant, the Port Jefferson power plant and others. Having the Repower Now Citizens Committee can only boost that effort, Cuthbertson and Petrone said in interviews with reporters after Tuesday’s meeting.

Local leaders want to see the aging Northport plant repowered so it will remain a source of energy and property tax revenue for years to come. Several local budgets, including that of the Northport-East Northport school district, rely heavily on the tax revenue.

Upgrading the Northport power plant can be done, Petrone said. It will be the new group’s responsibility to support repowering by producing a factual analysis on the issue.

“Our plant is probably the most viable plant to be utilized for that,” Petrone said, explaining Northport’s advantages in being repowered. “It has property available and it can be expanded. The need now is to put together a group to basically put some kind of study together … to support this. And there are many people out there that have expertise that we would wish to tap.”

Membership would include at least one person each from Northport and Asharoken villages, someone from the Northport-East Northport school district and members with engineering and sustainable energy backgrounds.

Repowering has another benefit: It may help settle a lawsuit LIPA brought against the town, challenging it over the value of the power plant.

LIPA claims the plant has been grossly over-assessed and the utility has overpaid taxes to the town. If LIPA’s suit is successful, the judgment could translate into double-digit tax increases for other Huntington Town and Northport-East Northport school district taxpayers.

If, however, the utility chooses to repower by upgrading the facility, the town has offered to keep its assessment flat, preventing those skyrocketing taxes.

“It’s a lawsuit that’s a very, very high-stakes lawsuit,” Cuthbertson told reporters after the meeting. “We have to look at both legal and political solutions, and political being through legislation. This is a part of trying to formulate a legislative solution and come up with a compromise that we might be able to work through.”

Petrone said he hopes to have the repowering citizens group assembled within a month.