Tonawanda News

Local News

August 26, 2012

POWERS THAT BE

Somerset Power Co. -- formerly AES -- up and running

(Continued)

Tonawanda News —

Bondholders of the new company have committed an additional $70 million investment to operate the Somerset plant.

According to the Upstate Power Producers fact sheet, the Somerset plan is an important source of energy diversification and an important buffer to price shocks from volatile natural gas prices. The plant is clean and the largest coal plan in the state.

RGGI The Regional Greenhouse Gas Initiative (RGGI) is a regulatory program to reduce greenhouse gas emissions. RGGI is a cooperative effort among the states of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont. Together, these states have capped and will reduce CO2 emissions from the power sector 10 percent by 2018. The first CO2 Allowance Auction was held in 2008. New York State's participation is through Gov. Pataki's Memorandum of Understanding and Gov. Paterson's Executive Order. New Jersey pulled out of compact. FACT SHEET Somerset has 120 employees with a 2011 payroll of $15 million. The union employees voted to accept and new contract in July. PILOT money pays 80 percent of the town tax base; 70 percent of the school tax base and 5 percent of the county tax base

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