The Power Authority of the State of New York (PASNY) was created in 1931 (Chapter 772) as an agency to improve, along with appropriate Canadian and United States authorities, the International Rapids Section of the St. Lawrence River near Massena as a means of commerce and navigation and to develop available hydroelectric power resources. In 1950, additional power resources of the Niagara River were made available to the United States under a treaty with Canada, and the following year PASNY was authorized by statute to develop additional power resources of this river.
In 1953 the authority was granted a license by the Federal Power Commission to construct, maintain and operate the St. Lawrence Power Project. As a public benefit corporation, the Power Authority sold revenue bonds to defray the cost of the project. In 1957 the Niagara Redevelopment Act granted the Authority an additional license to construct, maintain, and operate the Niagara Power Project, which was completed in 1961. In the case of both projects, contracts for the sale of power were expected to pay off debts incurred by construction and operation of the facilities.
In 1968, the authority was granted the right to build nuclear power facilities and hydroelectric pump storage projects within specified areas, alone or in cooperation with private utilities. The authority has completed projects at Blenheim-Gilboa (Schoharie County) and Nine Mile Point (on Lake Ontario near Oswego). In 1974 the authority also acquired and now operates power facilities in Astoria (Queens County) and Indian Point (a nuclear plant in Westchester County) to supply electricity to the New York City metropolitan area.
The Public Authorities Law was amended in 1978 to permit the Power Authority to develop small-scale hydroelectric projects. Several such projects have been undertaken, including those on the Ashokan Reservoir (Ulster County), the Kensico Reservoir (Westchester County), and at Hinkley Dam and Reservoir (Oneida and Herkimer Counties). In 1978 the Power authority also completed a transmission line to import power from Hydro-Quebec; in 1982 a thirteen-year contract was signed for importing hydroelectric energy.
In 1991, the Power Authority won the competitive bid to dispense more electric power for the Long Island Lighting Company (LILCO). In May 1994, the Richard M. Flynn Power Plant began operations in Holtsville, Suffolk County. The plant runs on a gas-fired combined cycle, fueled by natural gas and a secondary supply of oil. The Power Authority sells all electric output to LILCO.
In 1997, the New York State Senate and PASNY launched the Power for Jobs initiative to create and protect jobs across the state. The program subsidized, through local utility companies, power for businesses and non-profits who employ over 250,000 New Yorkers. The utility companies that participated in the program received a reduction on their utility gross receipts tax. The goal of the program was to reduce the cost of power for companies to ensure the saved capital could be used to create and maintain more jobs. The initial program was set to end in 2005, but the program was extended through 2010 due to its success. Over the duration of the program, about five hundred and sixty entities benefited from the low-cost energy to employ New Yorkers.
In 2011, the New York State Senate passed the Recharge New York Power Program Act, reinvigorating the expired Power for Jobs initiative. Unlike the earlier program, ReCharge NY is permanent and does not need annual renewal. Like its predecessor, ReCharge NY will provide low-cost energy to businesses to promote the creation and protection of jobs across the state. The improved program provides double the wattage and allows businesses to make seven-year commitments, enabling them to plan long-term. As of 2023, ReCharge NY is still in effect.
The Power Authority aided New York State’s transition to investor-owned utilities in 2000. The Power Authority sold two nuclear power plants, Indian Point 3 (Westchester) and James A. Fitzpatrick (near Oswego), to Entergy Corporation for nine hundred sixty-seven million dollars. This was the largest privatization of New York State assets at the time. Additionally, the Power Authority shifted focus to hydropower initiatives. The federal licenses for the St. Lawrence-FDR and Niagara power projects expired in 2003 and 2007. In response, the Power Authority began a plan to upgrade and modernize the generators. This included a 1.4-billion-dollar investment in the Niagara Project’s power dam and auxiliary generating facility.
Throughout the following decade, public demand for increased regulation of New York State public authorities grew. In response, government intervention in and regulation of public authorities, including PASNY, increased. In 2003, the Assembly Standing Committee on Corporations, Authorities, and Commissions held two hearings to examine the process for appointing an inspector general to the Power Authority. Governor George Pataki began to issue directives and actions to create a stronger administrative foundation for public authorities across the state to prevent further mismanagement. In February 2004, the governor’s office announced the establishment of the Public Authority Governance Advisory Committee. Attorney General Elliot Spitzer and Comptroller Alan Hevesi introduced the Public Authority Reform Act of 2004 to limit the influence of contracting decisions on public authorities. This act implemented controls on authorities’ debt, established the office of the Public Authorities Inspector General, and placed restrictions on lobbying to improve overall corporate governance. Additionally, the Act included provisions to make information about the operations and governance of the Power Authority public. On February 3, 2005, Govenor Pataki signed Executive Order 135 which created the New York State Commission on Power Authority Reform.
The Charles Poletti Plant (Astoria) began commercial operation in 2005. This plant was the most efficient power plant in Power Authority history using “combined cycle” technology. The plant was closed in 2010 as new, more efficient technology became available. The Power Authority continued initiatives for more efficient and clean energy throughout the decade, including the development of energy saving projects such as Charge NY, K-Solar, and EVolve NY.
The Power Authority became financially responsible for the New York State Canal Corporation in 2016. On January 1, 2017, the Power Authority officially gained ownership of the Canal Corporation and became responsible for the management and maintenance of the state’s canal system. Additionally, in September 2017, the Power Authority aided with power restoration in Puerto Rico and the Virgin Islands following Hurricane Maria. In the same project, the Power Authority aided the Virgin Islands by updating its energy system.
Chapter 58 of the Laws of 2019 amended the Power Authority Act and provided the Power Authority with enhanced authority to endorse New York State energy policies. Under Chapter 58, PASNY gained the authority to create vehicle charging stations; build and open transmission facilities that operated on renewable energy; and supply, sell, and finance renewable energy. PASNY’s increased authority over renewable energy initiatives enabled additional partnerships in 2019. PASNY partnered with Urban Future Lab at New York University’s Tandon School of Engineering to facilitate the New York Power Authority Innovation Challenge of 2019. The Innovation Challenge was an initiative to fund clean energy start-ups and pilot innovative technology. The lab focuses on upgrading energy technology to be more efficient and produce clean energy. The Power Authority was awarded the ISO 55001 International Asset Management Certification in 2019 and the Technology Innovation Award from e.Republic in 2020 for its efforts related to clean energy technology.
April 27, 2021 was the ninetieth anniversary of the 1931 Power Authority Act. The Power Authority unveiled the 2021-2025 Sustainability Plan and VISION2030. The VISION2030 initiative includes five key goals surrounding energy efficiency in New York State: to enhance the value of hydropower; to decarbonize the energy grid; to become the leading transmission developer, owner, and operator in the state; to meet the evolving goals of customers and the state in alignment with the Climate Leadership and Community Protection Act; and to give the existing canal system a new purpose focused on economic development and recreation. The conclusion of VISION2030 precedes PASNY’s 100th anniversary in 2031.
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The Power Authority of the State of New York, acting on behalf of the people of the state, obtains and maintains a continuous and adequate supply of dependable electric power and energy. It accomplishes this by financing, constructing, and operating electric generation and transmission facilities in New York State. Construction is financed through the sale of tax-exempt bonds and may be undertaken by the authority on its own or in cooperation with private utilities. Operational costs are funded by revenue raised by the sale of power to public agencies, industries, investor-owned utilities, and municipalities. The authority operates a variety of facilities, including nuclear and hydroelectric facilities, and investigates alternative sources of power.
