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NYPA extends rate freeze

By Joyce Kryszak

http://stream.publicbroadcasting.net/production/mp3/wbfo/local-wbfo-917834.mp3

Lewiston, NY – Hydropower customers across the state won't see any rate hikes in the near future.

With the Niagara Power Project as his backdrop, NYPA President Richard Kessel announced yesterday that NYPA is holding hydropower rates steady. The rate freeze was first adopted 16 months ago. But Kessel says, because of the poor economy, NYPA decided to extend the freeze at least though the end of the year. He says they recognize that local businesses, municipalities and residential customers are already struggling.

According to NYPA, the rate freeze has saved hydropower customers about $20 million since it was adopted in March 2009. The Authority backed down last year after an outcry over their proposed ten percent rate hike.

Niagara Falls Mayor Paul Dyster gave credit to Kessel for the authority's more municipal-friendly policies and decisions. Dyster said the savings from the rate freeze amounts to an economic development incentive package.

Dyster and Kessel said that details are being finalized with NYPA for an actual economic development plan for Niagara Falls. Kessel said an announcement on the proposed package will be ready in September.