Section 1005. Powers and duties of authority

Forthwith upon the appointment
  and  organization  of  the  trustees  and  subject to the conditions and
  limitations in this title contained, the authority, in cooperation  with
  the  proper  Canadian  authorities  and  those  of  the United States as
  hereinafter directed, shall proceed with the improvement and development
  of the Niagara river and the international rapids section of  the  Saint
  Lawrence  river  (which  is  defined as that part of the said river from
  Ogdensburg to the point where it leaves the territory of this state) for
  the aid and benefit of commerce and navigation and for  the  development
  of  the  hydroelectric  power  inherent  therein  in accordance with the
  provisions of this title.
    The  authority  is  authorized  to  procure  through   a   competitive
  solicitation process power and energy from the competitive market and to
  construct,  improve  and/or  rehabilitate throughout its area of service
  (a) such hydroelectric or energy storage projects, as it deems necessary
  or desirable to contribute to the adequacy, economy and  reliability  of
  the supply of electric power and energy or to conserve fuel and (b) such
  base-load  nuclear  generating  facilities or other facilities utilizing
  new energy technologies as in its judgment are necessary (i)  to  supply
  sufficient  supplemental  energy  to  make  possible  optimum use of the
  generating capacity  of  the  authority's  Saint  Lawrence  and  Niagara
  hydroelectric projects, (ii) to supply low cost power and energy to high
  load  factor  manufacturers  which  will  build  new  facilities  in the
  authority's area of service or expand existing facilities provided  such
  power  and  energy  is  made  available to them, and (iii) to supply the
  future needs of the authority's existing municipal  electric  and  rural
  electric cooperative customers.
    The  authority  is  further authorized to construct and/or acquire and
  complete such base load generating, transmission and related  facilities
  as  it deems necessary or desirable to assist in maintaining an adequate
  and dependable supply of electricity by supplying power and  energy  for
  the  metropolitan transportation authority, its subsidiary corporations,
  the New York city transit authority, the port authority of New York  and
  New  Jersey,  the  city  of  New York, the state of New York, the United
  States, other public corporations and electric corporations  within  the
  metropolitan  area of the city of New York within the state of New York;
  provided, however, that (i) the acquisition of  completed  or  partially
  completed  facilities shall be after public hearing and shall be limited
  to facilities located in New York city or  Westchester  county  and  the
  energy  and  power  generated  by  such facilities shall be used, to the
  extent feasible, for the benefit of electric  consumers  in  that  area,
  (ii)  not  more  than  one such generating facility shall be acquired in
  each of New York city and Westchester county, (iii) the price to be paid
  pursuant to any agreement entered into with  respect  to  the  purchase,
  appropriation  or  condemnation  of  any  such  completed  or  partially
  completed facility, as the case may be, shall be subject to the approval
  of the state comptroller and (iv) transmission facilities shall  not  be
  so  acquired  pursuant  to  this  paragraph  unless  such acquisition is
  necessary to assure  delivery  of  power  and  energy  produced  by  any
  acquired  generating  facility.  The authority is further authorized, to
  the extent it deems it necessary or  desirable,  to  provide  power  and
  energy,  as  it  may  determine  it  to be available, for the use by the
  Niagara frontier transportation authority or its subsidiary corporation.
  The authority is authorized to make energy  efficiency  services,  clean
  energy  technologies and, in the event that supplies of power and energy
  are determined to be available from  the  competitive  market  for  this
  purpose,  power and energy, available to public and nonpublic elementary
  and secondary schools throughout the state.

    A high load factor manufacturer  is  one  which  normally  utilizes  a
  minimum  electric  demand  of  five  thousand  kilowatts  and which will
  normally utilize energy at the rate of approximately five hundred  forty
  kilowatt  hours  per  month for each kilowatt of demand and of which the
  cost  of  electricity  normally  represents  at least seven and one-half
  percent of its total product value.
    The authority shall publish notice of any proposed allocation of  firm
  power  and  associated  energy except such allocations as are subject to
  the provisions of section one thousand nine of this  chapter,  at  least
  thirty  days prior to the delivery of any energy pursuant thereto, which
  notice shall, in the case of industrial allocations, document actions by
  the authority pertaining thereto including  solicitation  for  competing
  proposals.  In  addition,  such  notice  shall  be  transmitted  to  the
  temporary president of the senate, the speaker of the assembly, and  the
  respective fiscal committees of the legislature.
    Notwithstanding  any  inconsistent  provision of law, the authority is
  authorized to enter into contracts prior to July first, nineteen hundred
  eighty-five to allocate a total of not more than thirty-six megawatts of
  power and associated energy, available for allocation  as  a  result  of
  voluntary  relinquishment  by  high  load  factor manufacturers, of such
  power and associated energy from base load nuclear generating facilities
  of the authority, to furnish electricity to no more than three customers
  which: (a) are located in the southeastern portion  of  the  state;  (b)
  will  build  new  facilities and/or expand existing facilities; (c) will
  expand employment and investment in the state;  and  (d)  will  normally
  utilize a minimum peak electrical demand of one thousand kilowatts.
    The  authority  is  further  authorized  to construct such generating,
  transmission and related facilities within the service area of the  Long
  Island  power authority, as the authority, in consultation with and upon
  such terms and conditions as the  Long  Island  power  authority,  deems
  necessary or desirable.
    Periodically,  but  no  less  often  than  annually,  the authority is
  authorized and directed to identify the net  revenues  produced  by  the
  sale  of  expansion  power  and further to identify an amount of the net
  revenues from the sale of expansion power which  amount  shall  be  used
  solely  for  industrial  incentive  awards. Notwithstanding other lawful
  purposes for which such revenues may be used, it shall be the  preferred
  purpose  of  the  authority  to make available all such net revenues for
  industrial  incentive  awards.  Provided,   however,   that   industrial
  incentive  awards  shall  be  made  only in conformance with an economic
  development plan covering all such net revenues which  is  submitted  no
  less  often  than  annually  by  the  authority and approved pursuant to
  section one hundred eighty-eight of the commerce law.  For  purposes  of
  this  paragraph, the term net revenues shall mean any excess of revenues
  properly allocated to the  sales  of  expansion  power  over  costs  and
  expenses properly allocated to such sales.
    * a.  Notwithstanding  any  inconsistent  provision of this title, the
  authority shall  make  available  all  economic  development  power  for
  allocation  to  or  for businesses and whose allocation of such power is
  recommended by the New York state economic development power  allocation
  board  pursuant  to  section  one  hundred  eighty-seven of the economic
  development law. "Economic development power" shall mean any power  that
  is  voluntarily relinquished by businesses to the authority, except that
  it shall not include any power from the Niagara  or  Saint  Lawrence-FDR
  projects  or  power  under  the  power  for  jobs  program  which may be
  voluntarily   relinquished   by   businesses,   small   businesses   and
  not-for-profit corporations.

    b.  Notwithstanding  any  inconsistent  provision  of  this title, the
  authority shall make available  all  power  under  the  power  for  jobs
  program  for  allocation  to  or  for  businesses,  small businesses and
  not-for-profit corporations  and  whose  allocation  of  such  power  is
  recommended by such board pursuant to section one hundred eighty-nine of
  the  economic  development  law.  Power under the power for jobs program
  shall mean four hundred fifty megawatts of power in  the  initial  three
  phases  of  the  program, three hundred megawatts of power in the fourth
  phase of the program, and one  hundred  eighty-three  megawatts  in  the
  fifth  phase  of the program. The authority shall provide the least cost
  power available acquired through a competitive procurement process, from
  authority sources, or through an alternate method. The  authority  shall
  conduct  a competitive procurement process and may provide power through
  an alternate method if the cost is lower than the cost of power obtained
  through a competitive procurement process; provided, however,  that  the
  use of such lower cost power from authority sources shall not reduce the
  availability of, or cause an increase in the price of, power provided by
  the  authority  for  any  other  program  authorized  in this article or
  pursuant to any other  statute.  Such  competitive  procurement  process
  shall be established by the economic development power allocation board,
  in  consultation  with the department of public service, and implemented
  by the  authority.  Notwithstanding  the  foregoing,  the  power  to  be
  provided  by  the  authority  for  the fifth phase of the power for jobs
  program shall include, for the purpose of determining the  total  amount
  of  power  to  be  delivered  to  recipients,  power provided to program
  participants by other suppliers under the energy service company  option
  pursuant  to  paragraph  four  of  subdivision  a of section one hundred
  eighty-nine of the economic development law. For the  purposes  of  this
  paragraph  and  subdivision fourteen of this section, "local distributor
  of electric service" shall mean an electric corporation  as  defined  in
  subdivision thirteen of section two of the public service law that was a
  member  of  the  New  York power pool on January first, nineteen hundred
  ninety-five, or its successor in interest.
    c. The authority shall enter into  contracts  for  purchase  of  power
  during  the  fourth  and fifth phases of the power for jobs program that
  provide for delivery of power no sooner than January first, two thousand
  one with respect to phase four, January first,  two  thousand  two  with
  respect  to  phase five of the program, and December first, two thousand
  four with respect to extensions of phase four and phase five  contracts.
  If  the  authority declines to make power available to or for a business
  or not-for-profit corporation whose allocation has been so  recommended,
  the  authority shall decline within the period specified by the board in
  its recommendation and shall issue in writing a statement of reasons for
  such denial.
    d. The authority shall report quarterly to the New York state economic
  development power allocation board on the  anticipated  availability  of
  economic  development  power  and power under the power for jobs program
  for the subsequent twelve-month period.
    e. When the authority determines that economic  development  power  or
  power under the power for jobs program is available, the authority shall
  notify the New York state economic development power allocation board.
    f.  The  authority shall provide for the sale of power to its economic
  development power customers at a uniform  non-discriminatory  rate.  The
  authority  shall  provide  for the sale of power from authority sources,
  power acquired through a competitive procurement process established  by
  the New York state economic development power allocation board, or power
  provided   by  the  authority  through  an  alternate  method  to  local
  distributors of  electric  service  for  businesses  and  not-for-profit

  corporations  receiving  allocations  of  power under the power for jobs
  program at a rate that  shall  combine  the  rate  set  for  power  from
  authority  sources  and  the  actual  cost of power obtained through the
  competitive  procurement  process  or  from an alternate method, with no
  mark-up; provided  however,  that  prior  to  the  time  when  power  is
  available  through  the  competitive  procurement process, the authority
  shall provide power under the power for jobs program at the rate set for
  power from authority sources.
    g. 1. The authority is authorized, as deemed feasible and advisable by
  the  trustees,  to  use  revenues  from  the  sale  of  power  from  the
  Fitzpatrick  nuclear project under the initial three phases of the power
  for jobs program established pursuant to chapter three  hundred  sixteen
  of  the  laws  of  nineteen  hundred  ninety-seven,  to  the extent such
  revenues exceed revenues from the sale of such  power  in  the  calendar
  year prior to the effective date of chapter three hundred sixteen of the
  laws  of nineteen hundred ninety-seven, to make a voluntary contribution
  no later than sixty days after the end of the state fiscal year into the
  state treasury to the credit of the general fund.
    2. The authority, as deemed feasible and advisable by the trustees, is
  authorized to  make  payments  to  recipients  of  the  power  for  jobs
  electricity  savings  reimbursements  and  additional  annual  voluntary
  contributions into the state treasury to the credit of the general fund.
  The authority shall make such contributions to  the  state  treasury  no
  later  than  ninety  days  after the end of the calendar year in which a
  credit under subdivision nine of section one hundred eighty-six-a of the
  tax law is available: (a) for the additional three hundred megawatts  of
  power  under  the  fourth  phase  of  the program provided under chapter
  sixty-three of the laws of two thousand and under the  fifth  phase  for
  the additional one hundred eighty-three megawatts provided under chapter
  two  hundred twenty-six of the laws of two thousand two; and (b) for any
  extension of any contract for allocations under the fourth phase of  the
  program  and  under  the  fifth  phase  of the program. Payments for any
  electricity savings reimbursement under section one hundred  eighty-nine
  of  the economic development law shall be made pursuant to such section.
  Such annual contributions shall be equal to fifty percent of  the  total
  amount  of such credits available each year to all local distributors of
  electricity. In addition, such authorization for contribution  in  state
  fiscal  year  two thousand two--two thousand three shall be equal to the
  total amount of credit available in two thousand one  and  two  thousand
  two;  and  such  authorization for contribution in state fiscal year two
  thousand three--two thousand four shall be equal to the total amount  of
  credit  available  in  two  thousand  three;  under  subdivision nine of
  section one hundred eighty-six-a of the tax law under the  fourth  phase
  of the program for the additional three hundred megawatts provided under
  chapter  sixty-three  of  the  laws  of two thousand and under the fifth
  phase for the additional one  hundred  eighty-three  megawatts  provided
  under chapter two hundred twenty-six of the laws of two thousand two. In
  state  fiscal year two thousand four--two thousand five, such authorized
  annual contribution shall be equal to one hundred percent of  the  total
  amount  of such credits available each year to all local distributors of
  electricity. Such authorization for contribution in state  fiscal  years
  two  thousand  four  and  two  thousand five shall be equal to the total
  amount of credit available in two thousand four and two  thousand  five;
  under  subdivision  nine  of section one hundred eighty-six-a of the tax
  law under the fourth phase of  the  program  for  the  additional  three
  hundred  megawatts provided under chapter sixty-three of the laws of two
  thousand and under the  fifth  phase  for  the  additional  one  hundred
  eighty-three  megawatts provided under chapter two hundred twenty-six of

  the laws of two  thousand  two.  In  addition,  such  authorization  for
  contribution for any extension of any contract for allocations under the
  fourth  phase of the program and under the fifth phase of the program in
  each  state  fiscal year shall be equal to the total amount of credit or
  reimbursement available in state  fiscal  year  two  thousand  four--two
  thousand five, state fiscal year two thousand five--two thousand six and
  two  thousand six--two thousand seven. Additionally, notwithstanding any
  other section of law, the authority is authorized to make a contribution
  in an amount related to total amounts of credit  received  under  phases
  one,  two,  three,  four  and  five of the program. In no case shall the
  contribution for state fiscal year two thousand five--two  thousand  six
  be  less  than  seventy-five million dollars. The contribution for state
  fiscal year two thousand six--two thousand seven shall  be  one  hundred
  million  dollars.  The  contribution  for state fiscal year two thousand
  seven--two  thousand  eight  shall  be  thirty  million   dollars.   The
  contribution for state fiscal year two thousand eight--two thousand nine
  shall  be twenty-five million dollars. The contribution for state fiscal
  year two thousand nine--two thousand ten shall be  twelve  million  five
  hundred  thousand  dollars.  The  department  of  public  service  shall
  estimate the payment due by the end of the calendar year  in  which  the
  credit  is  available.  In  no case shall the amount of the total annual
  contributions for the years during which  delivery  and  sale  of  power
  associated  with  all  power  for jobs phases and any extensions thereof
  takes place exceed the aggregate total of four hundred sixty-one million
  five hundred thousand dollars.
    3. Other  authority  customers  shall  not  incur  any  costs  in  the
  implementation of the power for jobs program.
    h.  For  the purposes of paragraphs b and f of this ninth undesignated
  paragraph, "authority sources" shall be  defined  as  power  and  energy
  supplied by generating facilities of the authority in operation or under
  construction  as  of  the effective date of this paragraph and power and
  energy procured by competitive solicitation; provided, however, that  it
  shall  not  include  power from the Niagara and Saint Lawrence-FDR power
  projects, except this shall not preclude the use of  proceeds  from  the
  sale  of  power  from  such projects for energy cost savings benefits as
  provided herein.
    * NB Effective until May 15, 2010
    * Notwithstanding  any  inconsistent  provision  of  this  title,  the
  authority  shall  make  available  all  economic  development  power for
  allocation to or for  businesses  whose  allocation  of  such  power  is
  recommended  by the New York state economic development power allocation
  board pursuant to section one hundred eighty-seven of the commerce  law.
  If  the  authority declines to make power available to or for a business
  whose allocation has been so recommended, the  authority  shall  decline
  within the period specified by the board in its recommendation and shall
  issue in writing a statement of reasons for such denial.
    a.  Economic  development  power shall mean any power generated at the
  Fitzpatrick  nuclear  project  that  is  voluntarily   relinquished   by
  businesses.
    b. The authority shall report quarterly to the New York state economic
  development  power  allocation  board on the anticipated availability of
  economic development power for the subsequent twelve-month period.
    c. When the authority determines that economic  development  power  is
  available,  the  authority  shall  notify  the  New  York state economic
  development power allocation board.
    d. The authority  shall  provide  for  the  sale  of  power  from  the
  Fitzpatrick  nuclear  project  to its industrial, business, and economic
  development power customers at a uniform non-discriminatory rate.

    * NB Effective May 15, 2010
    The  authority is further authorized, as deemed feasible and advisable
  by the trustees, to acquire,  maintain,  manage,  operate,  improve  and
  reconstruct as a project or projects of the authority one or both of the
  steam  generation  facilities  owned  by the state known as the Sheridan
  avenue steam generating plant on Sheridan avenue in the city  of  Albany
  and  used  to  supply  steam  to  state  facilities,  together  with any
  properties, buildings and equipment at the sites  thereof  or  ancillary
  thereto,  for  the  generation  and  sale  of  thermal  energy  and  the
  cogeneration and sale of electricity for use by facilities of the  state
  within  the  county  of Albany. All the authority's costs, including its
  acquisition,  capital,  operating  and  maintenance  costs,   shall   be
  recovered  fully  from the customers receiving service from such project
  or projects. Thermal energy and electricity not required  by  the  state
  may  be sold by the authority to others. The authority is not authorized
  to use refuse  or  refuse-derived  fuel  in  operating  the  project  or
  projects.  Any  agreement  for  such  acquisition  shall insure that the
  authority is not  liable  or  otherwise  responsible  for  circumstances
  arising from the prior operation of such facilities. The acquisition and
  purchase of such land, buildings and equipment by the authority, and any
  actions taken to effect such acquisition and purchase, are hereby exempt
  from  the  provisions of article eight of the environmental conservation
  law. The application of such exemption shall be strictly limited to  the
  acquisition  and  purchase  of such land, buildings and equipment by the
  authority and such agreements  with  the  state.  Nothing  herein  shall
  exempt  the  authority  from  otherwise  applicable  laws respecting the
  expansion, conversion, operation and maintenance of such land, buildings
  and equipment.
    The authority is authorized and directed:
    1. To cooperate with the appropriate agencies  and  officials  of  the
  United  States  government  to the end that any hydroelectric project on
  the Niagara or Saint Lawrence rivers undertaken under this  title  shall
  be  consistent with and in aid of any plans of the United States for the
  improvement of commerce and navigation along such rivers and shall be so
  planned and constructed as to be adaptable to the plans  of  the  United
  States  therefor,  so  that  the  necessary channels, locks, canals, and
  other navigational facilities may be constructed and  installed  by  the
  United States, in, through, and as part of such project.
    2. To negotiate with the appropriate Canadian authorities and agencies
  respecting  the  improvement  and  development of the Niagara river, and
  international rapids section of the Saint Lawrence river for the aid and
  benefit of commerce and navigation and the development of hydro-electric
  power therefrom, and to plan and agree with them upon cooperative action
  to that end including  any  shifting  of  international  boundary  lines
  between  Canada  and  the  United  States  and upon the use, control and
  disposition of the facilties to be created and the hydro-electric  power
  to  be  developed  by  any  project  constructed  in  such  rivers. Such
  negotiations and agreements shall be conducted and  concluded  with  due
  regard  to the position of the United States in respect to international
  agreements, and any such agreements as  may  be  reached  with  Canadian
  authorities  or  agencies  may be submitted by the authority to congress
  for its approval, if it be advised that such approval  is  necessary  or
  desirable.
    3.  To  apply  to the appropriate agencies and officials of the United
  States government and/or of  Canada  or  its  provinces,  including  the
  federal   power  commission,  the  atomic  energy  commission,  and  the
  international joint commission, for such licenses, permits  or  approval
  of  its  plans or projects as it may deem necessary or advisable, and in

  its discretion, and upon such  terms  and  conditions  as  it  may  deem
  appropriate,  to  accept  such  licenses, permits or approvals as may be
  tendered to it by such agencies or officials and such federal  or  other
  public  or  governmental  assistance  as  is now or may hereafter become
  available to it; and to enter  into  contracts  with  such  agencies  or
  officials or utility companies relating to the construction or operation
  of  any  project authorized by this title. Neither the authority nor any
  trustee, officer or agent thereof shall  have  any  power  to  waive  or
  surrender for any purpose whatsoever any right of the state of New York,
  whether sovereign or proprietary in character, in and to the Niagara and
  Saint  Lawrence rivers, their waters, power, channels, beds, or uses, or
  the right of the state  to  assert  such  rights  at  any  future  time;
  provided,  however,  that nothing herein contained shall be construed as
  limiting the power of the authority to accept  licenses  issued  by  the
  federal power commission pursuant to the provisions of the federal power
  act,  as  amended,  or  by  the atomic energy commission pursuant to the
  provisions of the atomic energy act of 1954, as amended, and  the  terms
  and  conditions  therein  imposed pursuant to law. If for any reason the
  authority shall fail to secure any such license, permit or  approval  as
  it  may  deem  necessary  or  advisable,  or  shall  decide  not to make
  application therefor, it is authorized to institute suit, or to apply to
  congress for legislation, or take such other action in the  premises  as
  it  may  deem  necessary or advisable, in the furtherance of the project
  and for the protection of its rights and those of the state.
    4. To study the desirability and means of attracting industry  to  the
  state of New York.
    5. To develop, maintain, manage and operate those parts of the Niagara
  and  Saint  Lawrence hydroelectric projects owned or controlled by it in
  such manner as to give effect to the policy  hereby  declared  (and  all
  plans  and  acts,  and all contracts for the use, sale, transmission and
  distribution of the power generated by such projects, shall be  made  in
  the  light of, consistent with and subject to this policy), namely, that
  such projects shall be in all respects for  the  aid,  improvement,  and
  benefit  of  commerce  and  navigation  in,  through, along and past the
  Niagara river, the Saint Lawrence river  and  the  international  rapids
  section  thereof,  and  that  in the development of hydro-electric power
  therefrom such projects shall be considered primarily as for the benefit
  of the people of the state as a whole and particularly the domestic  and
  rural  consumers  to  whom the power can economically be made available,
  and accordingly that sale to and use by industry shall  be  a  secondary
  purpose,  to  be utilized principally to secure a sufficiently high load
  factor and revenue returns to permit  domestic  and  rural  use  at  the
  lowest  possible  rates  and  in  such  manner as to encourage increased
  domestic and rural use of electricity. In furtherance of this policy and
  to secure a wider distribution of such power and  use  of  the  greatest
  value  to  the  general  public  of  the  state,  the authority shall in
  addition to other methods which it may find advantageous make  provision
  so  that  municipalities  and other political sub-divisions of the state
  now or hereafter authorized by law to  engage  in  the  distribution  of
  electric  power  may secure a reasonable share of the power generated by
  such projects, and shall sell the same or cause the same to be  sold  to
  such  municipalities  and  political subdivisions at prices representing
  cost of generation, plus capital and operating charges, plus a fair cost
  of transmission, all as determined  by  the  trustees,  and  subject  to
  conditions  which  shall assure the resale of such power to domestic and
  rural consumers at the lowest possible price, provided, however, that in
  disposing of hydro-electric power pursuant to and in furtherance of  the
  aforementioned  policy  and  purposes, appropriate provision may also be

  made to allocate a reasonable share of project power to agencies created
  or designated by other states and authorized  to  resell  the  power  to
  users under the same terms and conditions as power is disposed of in New
  York  state.  To  that end, the authority may provide in any contract or
  contracts which it may make for the sale, transmission and  distribution
  of  the  power  that  the  purchaser,  transmitter  or distributor shall
  construct, maintain and operate, on such terms as the authority may deem
  proper, such connecting lines as may be necessary  for  transmission  of
  the  power  from  main  transmission  lines  to  such  municipalities or
  political subdivisions.
    Contracts  for  the  sale,  transmission  and  distribution  of  power
  generated  by  such  projects  shall provide for the effectuation of the
  foregoing policy and shall provide:
    a. Payment of all operating and maintenance expenses of the project.
    b. Interest on and amortization and reserve charges sufficient  within
  fifty  years  of  the  date of issuance to retire the bonds of the power
  authority issued for the project.
    c. Continuous control and operation of the project by the authority.
    d. The effectuation of the policy declared in this sub-paragraph.
    e. Full and complete disclosure to the authority  of  all  factors  of
  cost  in  the  transmission  and distribution of power, so that rates to
  consumers may be fixed initially in the contract  and  may  be  adjusted
  from  time  to  time  on  the  basis of true cost data, provided that in
  fixing such cost of transmission and distribution no  account  shall  be
  given  to  any  franchise value, going value or good-will based upon the
  existence of the contract and the availability of the power for sale  by
  the  transmitting  or  distributing  company  or  any company associated
  therewith.
    f. Periodic revisions of the service and rates  to  consumers  on  the
  basis  of  accurate  cost  data  obtained by such accounting methods and
  systems as shall be approved by the  trustees  and  in  furtherance  and
  effectuation of the policy declared in this sub-paragraph.
    g.   That  the  rates,  services  and  practices  of  the  purchasing,
  transmitting and/or distributing public agencies or companies in respect
  to the power generated  by  such  projects  shall  be  governed  by  the
  provisions  and  principles  established  in  the  contract,  and not by
  regulations of the public service commission or by general principles of
  public service law regulating rates, services and practices and that  in
  the  event  any  such  public agencies or companies which purchase power
  from the authority shall sell any such power for resale, such  sale  for
  resale  shall  be  made at rates no higher than those at which the power
  was purchased from the authority.
    h. The rate structures  agreed  upon  in  such  contract  may  provide
  different  rates  for  different  localities,  classes of consumers, and
  amounts of current consumed, and for changes in the rates resulting from
  variation in operating costs and fixed charges.
    i. For the cancellation and termination  of  any  such  contract  upon
  violation  of  the  terms  thereof  by  the  purchasing, transmitting or
  distributing public agency or company, or any  subsidiary  or  associate
  thereof.
    j.  For  such  security  for  performance  as  the  authority may deem
  practicable and advisable, including provisions assuring the continuance
  of service by the purchasing, transmitting  and/or  distributing  public
  agencies  or  companies  and/or  the  use  of  their facilities for such
  service and/or the continuance of an outlet and adequate market for  the
  power generated by such projects.
    k. Such other terms not inconsistent with the provisions and policy of
  this title as the authority may deem advisable.

    6.  To  develop,  maintain, manage and operate its projects other than
  the Niagara and Saint Lawrence  hydroelectric  projects  so  as  (i)  to
  provide  an  adequate  supply  of  energy for optimum utilization of its
  hydroelectric projects, (ii) to attract  and  expand  high  load  factor
  industry,  (iii)  to  provide  for the additional needs of its municipal
  electric and rural electric cooperative customers and (iv) to assist  in
  maintaining an adequate, dependable electric power supply for the state.
    Contracts  for  the  sale,  transmission and distribution of power and
  energy generated by such projects shall provide for the effectuation  of
  the  policy  set forth in this title relating to such projects and shall
  provide:
    a. Payment of all operating and maintenance expenses of the projects.
    b. Interest on and amortization and reserve charges sufficient  within
  fifty years of the date of issuance to retire the bonds of the authority
  issued for the projects.
    c.  For  the  cancellation  and  termination of any such contract upon
  violation of the  terms  thereof  by  the  purchasing,  transmitting  or
  distributing public agency or company, or any subsidiary thereof.
    d.   That  the  rates,  services  and  practices  of  the  purchasing,
  transmitting and/or distributing  public  agencies  and  rural  electric
  cooperatives in respect to the power and energy from such projects shall
  be  governed  by  the  provisions  and  principles  established  in  the
  contract, and not by regulations of the public service commission or  by
  general  principles of public service law regulating rates, services and
  practices and that in the event any such public agencies or cooperatives
  which purchase power from the authority shall sell any  such  power  for
  resale, such sale for resale shall be made at rates no higher than those
  at which the power was purchased from the authority.
    e. In the case of a contract with an electric corporation entered into
  on  or after May first, nineteen hundred seventy-four (i) for assurances
  by the electric corporation of prompt and timely payment  of  all  bills
  rendered  by  the  authority  and  that  failure to make such prompt and
  timely payment  shall  be  grounds  for  immediate  termination  of  the
  contract,  and (ii) that in the event the contract is so terminated, the
  electric company will wheel to such  purchasers  as  the  authority  may
  direct  the  power  and energy that would have been sold to the electric
  company had the contract not been terminated.
    f. Such other terms not inconsistent with the provisions and policy of
  this title as the authority may deem advisable.
    7. To proceed with the physical  construction  or  completion  of  any
  project  authorized  by  this  title,  including  the  erection  of  the
  necessary dams, power houses and other facilities, instrumentalities and
  things necessary or convenient to  that  end,  and  including  also  the
  erection  of  such  transmission  lines  as  may be necessary to conduct
  electricity to users located at or near the site; and including also the
  acquisition, by contract only with the owners thereof,  of  transmission
  lines  or  the use of such transmission lines, available or which may be
  made available, to conduct electricity to such point or points at  which
  the  electricity  is sold by the authority to any person, corporation or
  association, public or private, engaged in the business of  distribution
  and  sale  of  electricity  to ultimate consumers or if the authority is
  unable  to  so  acquire  by  contract  the  ownership  or  use  of  such
  transmission  lines,  including  also  the  erection by the authority of
  transmission lines  necessary  for  such  purposes;  and  thereafter  to
  maintain  and  operate the project in accordance with the provisions and
  policy of this  title.  The  authority  is  specifically  authorized  to
  undertake the construction of any project in one or more steps as it may
  find  economically  desirable  or advantageous, and as it may agree with

  the appropriate Canadian and/or United States authorities.  Whenever  in
  this  title  reference  is  made to "project", it shall be understood to
  refer to such part of any project authorized by this title as  may  from
  time to time be in existence or immediately projected.
    8.  To  cooperate  with  and,  when  the trustees deem it feasible and
  advisable,  to  enter  into  contractual   arrangements   with   utility
  companies;
    a.  With  respect  to  construction  and  operation  of pumped storage
  facilities by the authority and supply of all or part of  the  necessary
  pumping energy by the utilities and their purchase of all or part of the
  output.
    b.  With  respect  to construction, completion, acquisition, ownership
  and/or  operation  of  baseload  generating  facilities,  fuel,   docks,
  sidings,  loading  or  unloading equipment, storage facilities and other
  subsidiary facilities and disposition of the output of  such  generating
  facilities.
    c.  With  respect  to  construction, acquisition, ownership, operation
  and/or use of transmission facilities.
    9. To cooperate with and, when  the  trustees  deem  it  feasible  and
  advisable,   to  enter  into  contractual  arrangements  with  municipal
  corporations with respect to construction, improvement,  rehabilitation,
  ownership  and/or  operation  of hydroelectric generating facilities and
  subsidiary facilities and disposition of the output of  such  generating
  facilities.
    10.  To  cooperate  with  and,  when the trustees deem it feasible and
  advisable, to enter into contractual arrangements with  New  York  state
  energy  research  and  development  authority  in  connection  with  the
  planning, siting, development, construction, operation  and  maintenance
  of   generating   facilities  of  the  authority  utilizing  new  energy
  technologies to the extent such action is consistent with  the  purposes
  and  powers  granted  by  law  to  New  York  state  energy research and
  development authority.
    10-a. a. To cooperate with and, when the trustees deem it feasible and
  advisable, enter into contracts with an owner or operator of a "class A"
  multiple dwelling, as defined in subdivision eight of  section  four  of
  the  multiple  dwelling  law, to administer and finance programs for the
  development, design, installation and provision of financial  assistance
  with  respect  to  the  replacement  of  refrigerators  with more energy
  efficient refrigerators; provided that no  costs  associated  with  such
  financial  assistance  shall  be  charged  to the authority's customers.
  Financial assistance shall be repaid to the authority, over a period not
  to exceed ten years, based on projected  savings  in  energy  costs  and
  related  costs  which accrue to the owner as a result of installing such
  measures and consistent with paragraph b of this subdivision.
    b. If the owner of  such  multiple  dwelling  is  a  customer  of  the
  authority  or  of  an  electric  corporation,  as defined in subdivision
  thirteen  of  section  two  of  the  public  service  law,  and  if  the
  refrigerator  is  provided  by the owner, and if charges for electricity
  are included within the  rent  that  the  tenant  pays  to  occupy  such
  dwelling,  the owner of such dwelling shall repay the authority for such
  financial assistance based on projected savings in energy costs that are
  estimated to accrue to the owner as a result of such replacement.  As  a
  condition   of   participating   in  the  program  established  by  this
  subdivision, such owner shall agree to be precluded  from  charging  any
  additional  fee  or  collecting  any  rent  increase to such tenant as a
  result of such replacement.
    11. To exercise all the powers necessary or convenient  to  carry  out
  and  effectuate  the  purposes  and  provisions  of  this  title; and as

  incidental thereto to own, lease, build, operate, maintain  and  dispose
  of  real  and  personal property of every kind and character, to acquire
  real property and any or every interest therein for its lawful  purposes
  by purchase, or by condemnation as hereinafter provided, to borrow money
  and  secure the same by bonds or liens upon revenue from any property or
  contracts held or to be held by it, to sell water or electric power, and
  generally to do any and every thing necessary or convenient to carry out
  the purposes of this title, provided that the authority  shall  have  no
  power at any time to pledge the credit of the state nor shall any of its
  obligations  or  securities be deemed to be obligations of the state nor
  shall the authority have the power to lease or sell any  dam,  or  power
  house at the site.
    12.   Notwithstanding  any  limitations  hereinbefore  expressed,  the
  authority is authorized and directed forthwith or from time to  time  as
  it shall deem advisable and within the limitations of the appropriations
  made   available  for  it  to  initiate  and  prosecute  all  inquiries,
  investigations, surveys and studies  which  it  may  deem  necessary  or
  desirable  as  preliminary  to  the effectuation of the other powers and
  duties conferred upon it by this title.
    13. Notwithstanding any other provision of law  to  the  contrary  but
  subject  to  the  terms  and  conditions  of  federal  energy regulatory
  commission licenses, to allocate or reallocate directly or by  sale  for
  resale,   two   hundred   fifty   megawatts   of  firm  Niagara  project
  hydroelectric power as "expansion power"  and  four  hundred  forty-five
  megawatts  of  firm  Niagara project hydroelectric power as "replacement
  power" to businesses within the state located within thirty miles of the
  Niagara  project,  and  four  hundred  ninety  megawatts  of  firm   and
  interruptible power from the Saint Lawrence-FDR project as "preservation
  power"  sold  to  businesses  located  within the counties of Jefferson,
  Saint Lawrence and Franklin, provided that the amount of expansion power
  allocated to businesses in Chautauqua county on January first,  nineteen
  hundred  eighty-seven shall continue to be allocated in such county and,
  provided further that up to seventy megawatts of replacement  power,  up
  to  thirty-eight and six-tenths megawatts of preservation power from the
  Saint Lawrence-FDR project which is relinquished or withdrawn after  the
  effective  date  of  chapter  three  hundred thirteen of the laws of two
  thousand five which amended this subdivision and, for the period  ending
  on  December  thirty-first,  two thousand six, up to twenty megawatts of
  other power from the Saint Lawrence-FDR project which is unallocated  as
  of  the  effective date of chapter three hundred thirteen of the laws of
  two thousand five which amended this subdivision, shall be allocated  by
  the  authority  together  with  such other funds of the authority as the
  trustees deem feasible and advisable for energy  cost  savings  benefits
  pursuant   to  the  twelfth  undesignated  paragraph  of  this  section.
  Provided, however, that the amount of replacement,  preservation  power,
  or  the  additional twenty megawatts of Saint Lawrence-FDR power for the
  period ending December thirty-first, two thousand six made available for
  such  purpose,  used  for  energy  cost  savings   benefits   that   are
  relinquished  by  or withdrawn from a recipient thereof shall be offered
  by the  authority  proportionately  for  a  period  of  six  months  for
  reallocation  to  applicants who qualify respectively for replacement or
  preservation power allocations as provided in this subdivision. If  such
  power  is not allocated within such period it shall be allocated for the
  purpose of energy cost savings benefits pursuant to subdivision  (h)  of
  section  one  hundred  eighty-three of the economic development law. The
  authority shall negotiate contracts on reasonable terms  and  conditions
  to  renew  or  extend  every  permanent contract allocation of expansion
  power in effect on the effective date of this subdivision  and,  to  the

  extent  consistent  with  such  contracts, the authority shall negotiate
  contracts on reasonable terms and conditions  to  extend  or  renew  all
  other  allocations  or  allotments of such power in effect on such date.
  The   authority  shall  negotiate  contracts  on  reasonable  terms  and
  conditions to renew or extend for a period of at least five years  every
  permanent  contract  allocation  of  replacement  power in effect on the
  effective date of chapter three hundred thirteen  of  the  laws  of  two
  thousand  five  which  added  this sentence and that would expire by its
  terms on or before the end of  the  initial  federal  energy  regulatory
  commission   license   for   the  Niagara  project;  provided  that,  in
  negotiating the terms and conditions of such  contracts,  the  authority
  may  consider  a  business'  compliance  with  all  current  contractual
  obligations, including employment and power usage commitments. Contracts
  entered into pursuant  to  this  subdivision  shall  contain  reasonable
  provisions providing for the partial or complete withdrawal of the power
  in  the  event the recipient fails to maintain mutually agreed levels of
  employment, investment, and power utilization. Expansion or  replacement
  power  relinquished by businesses or withdrawn by the authority shall be
  allocated directly or by sale for resale by the authority to  businesses
  within  the  state  located  within  thirty miles of the Niagara project
  provided, that the amount of power allocated to businesses in Chautauqua
  county  on  January  first,  nineteen  hundred  eighty-seven  shall   be
  allocated  in  such  county.  Preservation power that is relinquished by
  businesses or withdrawn by the authority shall be allocated directly  or
  by  sale  for  resale by the authority within the counties of Jefferson,
  Saint Lawrence and Franklin. Allocations made pursuant to this paragraph
  shall be made in accordance with criteria established by  the  trustees.
  Such  criteria  shall  address  the expansion of industry and employment
  pursuant to paragraph (a) of this subdivision and the revitalization  of
  existing industry pursuant to paragraph (b) of this subdivision.
    (a)   Criteria   for   eligibility   for  expansion,  replacement  and
  preservation power. Each application for an  allocation  for  expansion,
  replacement  or  preservation  power  shall be evaluated by the trustees
  under criteria which shall include but need not be limited to:
    (1) the number of jobs created as a result of a power allocation;
    (2) the business' long term commitment to the region as  evidenced  by
  the current and/or planned capital investment in business' facilities in
  the region;
    (3)  the  ratio  of  the number of jobs to be created to the amount of
  power requested;
    (4) the types of jobs created, as measured by wage and benefit levels,
  security and stability of employment;
    (5) the amount of capital investment, including the type and  cost  of
  buildings,  equipment  and  facilities  to  be  constructed, enlarged or
  installed;
    (6) the extent to which a power allocation  will  affect  the  overall
  productivity  or  competitiveness  of  the  business  and  its  existing
  employment;
    (7) the extent to which  an  allocation  of  power  may  result  in  a
  competitive disadvantage for other business in the state;
    (8) the growth potential of the business facility and the contribution
  of  economic  strength  to the area in which the business facility is or
  would be located;
    (9) the extent of the business' willingness to make jobs available  to
  persons  defined as eligible for services under the federal job training
  partnership act of nineteen hundred eighty-two and  the  extent  of  the
  business' willingness to satisfy affirmative action goals;

    (10)  the  extent  to  which an allocation of power is consistent with
  state, regional and local economic development strategies and priorities
  and supported by local units of government in  the  area  in  which  the
  business is located; and
    (11)  the  impact  of  the  allocation  on  the operation of any other
  facilities of the business, on other businesses within the  region,  and
  upon other electric ratepayers.
    (b)  Revitalization. In addition to the criteria provided in paragraph
  (a) of this subdivision the trustees shall  establish  special  criteria
  for   the  evaluation  of  applications  for  power  allocated  for  the
  revitalization of industry. Such criteria shall include, but need not be
  limited to:
    (1) that the business is likely to close, partially close or  relocate
  resulting in the loss of a substantial number of jobs;
    (2)  that  the  business is an important employer in the community and
  efforts to revitalize the business are in long-term  interests  of  both
  employers and the community;
    (3)  that a reasonable prospect exists that the proposed allocation of
  power  will  enable  the  business  to  remain  competitive  and  become
  profitable and preserve jobs for a substantial period of time;
    (4)  that  the  applicant  demonstrates  cooperation  with  the  local
  electricity distributor and other available  sources  of  assistance  to
  reduce   energy   costs  to  the  maximum  extent  practicable,  through
  conservation and load management; and
    (5) that the allocation will not unduly affect the  cost  of  electric
  service to customers of the local electricity distributor.
    * 14.  a.  To provide to the governor, to the speaker of the assembly,
  and to the temporary president of the senate, on or before  April  first
  of  each  year, an economic development report including projections for
  the next succeeding twelve months of the amount of economic  development
  power, expansion power, replacement power, preservation power, high load
  factor  power,  municipal  distribution agency power and power under the
  power for jobs programs which will be or is  expected  to  be  available
  with  a listing of the current recipients of such power, and data on the
  number and types of jobs resulting from allocation of power  under  each
  such program. Such report shall include the amount of revenues collected
  and used in the previous calendar year pursuant to the eighth unnumbered
  paragraph  of  this  section.  Such report shall describe the process by
  which the authority obtained lowest cost power made available under  the
  power  for jobs program. Such report shall contain a record of wholesale
  power  supply  bids  provided  to  the  authority  under  a  competitive
  procurement  process  and  the  price  of  power  obtained  through  any
  alternate methods. Such report shall state the reasons for choosing each
  specific source of power under each of the foregoing power programs  and
  the price at which that power was available.
    b.  To provide to the governor, to the speaker of the assembly, and to
  the temporary president of the senate on or before December  first,  two
  thousand,  a  report  on  the  power for jobs program. Such report shall
  include the amount of power provided under the program, number  of  jobs
  created  and number of jobs retained as a result of allocations of power
  under the program, and number of jobs per megawatt  of  power  provided.
  Such  report  shall  separately  list  such  information  for the state,
  businesses, small businesses, not-for-profit corporations,  and  service
  territory  of  each  local  distributor of electric service. Such report
  shall  also  include  an  evaluation  with  regard  to  the   need   for
  continuation  of  economic development programs, including the power for
  jobs program.
    * NB Effective until May 15, 2010

    * 14. To provide to the governor, to the speaker of the assembly,  and
  to  the  temporary  president of the senate, on or before April first of
  each year, an economic development report including projections for  the
  next  succeeding  twelve  months  of  the amount of economic development
  power which will be or is expected to be available with a listing of the
  current  recipients  of  that power, and data on the number and types of
  jobs resulting from  allocation  of  economic  development  power.  Such
  report  shall  also include the amount of revenues collected and used in
  the previous calendar year pursuant to the eighth  unnumbered  paragraph
  of this section.
    * NB Effective May 15, 2010
    15.  To provide low cost electricity, as well as energy efficiency and
  conservation services and facilities using conventional  or  new  energy
  technologies, to the following military establishments within the state:
  Fort   Drum,  Fort  Hamilton,  United  States  Academy  at  West  Point,
  Watervliet Arsenal, Niagara Falls Air Reserve Base, Air  Force  Research
  Laboratory  at  Rome,  Defense Finance Accounting Services at the former
  Rome Air Force Base, North East Air Defense Sector, Stewart Air National
  Guard Base, Hancock Field Air National Guard Base, Stratton Air National
  Guard Base and Air National Guard Base at Francis S.  Gabreski  Airport.
  Services  provided  pursuant  to  this section shall be provided only to
  support United States Department  of  Defense  activities  as  they  are
  conducted  at  such  facilities.  The authority may enter into contracts
  with the United States, its agencies and  instrumentalities,  and  other
  public and private entities to effectuate the foregoing.
    16.  a.  To promote the conservation and efficient use of electricity,
  the power authority of the state of New York shall undertake or cause to
  be undertaken energy audits in connection with the economic  development
  power, expansion power, replacement power, preservation power, high load
  factor power, municipal distribution agency power and the power for jobs
  programs.  Energy  audits shall be conducted for a representative sample
  of the recipients of such low-cost  power  programs.  The  audits  shall
  assess   a  recipient's  electricity  use  to  determine  cost-effective
  measures that could be employed to reduce energy costs, energy  use,  or
  improve  the  efficiency  of  buildings,  building  systems,  equipment,
  processes or operations.  The  representative  sample  shall  take  into
  consideration the program of enrollment, type of business, geography for
  statewide  programs  and  allocation  size.  Recipients'  energy  audits
  performed up  to  five  years  prior  to  the  effective  date  of  this
  subdivision  may be considered. Costs of the energy audits shall be paid
  by the power authority of the state of New York as deemed  feasible  and
  advisable  by  the  board. For purposes of implementing this subdivision
  only, the power authority or  its  agent  is  authorized  to  apply  for
  funding  from  any  program  that  pays all or some of the costs of such
  audits, and the power authority  or  its  agent  shall  be  entitled  to
  receive  such  funding  as  if  the recipient of such low-cost power had
  applied for the funding directly.
    b. The authority shall complete and submit  a  report  on  the  energy
  audit  program  to  the  governor,  the  speaker  of  the  assembly, the
  temporary president of the senate, the minority leader  of  the  senate,
  and the minority leader of the assembly, the chair of the senate finance
  committee, the chair of the assembly ways and means committee, the chair
  of  the assembly energy committee and the chair of the senate energy and
  telecommunications committee  and  the  state  comptroller  by  February
  twenty-eighth, two thousand ten.
    The  authority  is  authorized  to allocate up to seventy megawatts of
  unallocated power from the Niagara project sold prior to  the  effective
  date  of  this  paragraph  as  replacement power, up to thirty-eight and

  six-tenths megawatts of preservation power from the  Saint  Lawrence-FDR
  project  which  is relinquished or withdrawn after the effective date of
  this paragraph, and for the period ending on December thirty-first,  two
  thousand  six,  up  to  an additional twenty megawatts of power from the
  Saint Lawrence-FDR project which is unallocated as of the effective date
  of this paragraph, for sale into the wholesale market, the net  earnings
  from  which and such other funds of the authority as deemed feasible and
  advisable by the  trustees,  shall  be  used  for  energy  cost  savings
  benefits.   Such  energy  cost  savings  benefits  shall  be  made  upon
  recommendation of  the  economic  development  power  allocation  board,
  pursuant  to  subdivision (h) of section one hundred eighty-three of the
  economic development law. For purposes of this paragraph, the  term  net
  earnings  shall mean any excess of revenues earned from the sale of such
  power allocated to the wholesale  market  from  the  Niagara  and  Saint
  Lawrence-FDR  projects  over  the revenues that would have been received
  had such firm power been allocated and sold  on  a  firm  basis  by  the
  authority prior to the effective date of this paragraph.
    The  governor  shall establish a temporary commission on the future of
  New York state power  programs  for  economic  development  as  soon  as
  practicable  but no later than May first, two thousand six. On or before
  December  first,  two  thousand   six,   the   commission   shall   make
  recommendations  to  the  governor  and  the  legislature  on whether to
  continue, modify, expand or replace  the  state's  economic  development
  power  programs, including but not limited to the power for jobs program
  and the  energy  cost  savings  benefit  program,  and  shall  recommend
  legislative  language  necessary  to  implement its recommendations. The
  commission shall consist of eleven members, comprised  of  five  members
  appointed  by  the  governor,  one  of whom he or she shall designate as
  chairperson, two members by the speaker of the assembly, two members  by
  the temporary president of the senate, one member by the minority leader
  of the assembly and one member by the minority leader of the senate.