Clean-coal power plant seems stalled

 

Feb 25 - McClatchy-Tribune Regional News - Janice L. Habuda The Buffalo News, N.Y.

What's happening with the $1.5 billion clean-coal power plant proposed for the Huntley Station in the Town of Tonawanda?

A special committee of school, business and government leaders met for the first time last week to consolidate efforts to learn about the status of the proposal.

"We find we are quite often dealing with misinformation about the project," said Robert Dimmig, executive director of the Town of Tonawanda Development Corp. "We have . . . an information gap."

In December 2006, then-Gov. George E. Pataki announced that NRG Energy, which owns the plant, had won a state incentive award to build a clean-coal plant on the River Road site. Final approval hinges on whether it can cut costs or obtain incentives to make the electricity it generates cheap enough for businesses and people to buy.

"Are New York State and NRG talking?" Tonawanda Supervisor Anthony F. Caruana asked.

"My concern is here we are, sitting here, and we don't know from either end."

Although the project appears to have stalled, the state Department of Environmental Conservation and the State Power and Energy Research and Development authorities are examining environmental and technological aspects, according to Laura Monte, the local representative for Gov. Eliot L. Spitzer.

If the project is a go, the local economy stands to benefit from 1,000 construction jobs, 100 additional jobs at the power plant and spin-off benefits estimated to average $120 million annually over 35 years.

If it's a "no" and the antiquated Huntley Plant is mothballed, the effects on the economy could be devastating.

A seven-year payment in lieu of taxes (PILOT) agreement with NRG Energy will expire this year.

"What happens if it's shuttered -- do we require some type of closure plan?" Dimmig asked. "The last thing we want to be facing is this thing locked down, shut up."

jhabuda@buffnews.com