FINDS POWERCHOICE WILL CREATE 8,200 JOBS, PLAY SIGNIFICANT ROLE
IN IMPROVING NEW YORK STATE ECONOMY|
Report Determines Niagara Mohawk’s Settlement Will Lower Cost of Doing Business, Enhance Regional Competitiveness
SYRACUSE, Jan. 27-- Niagara Mohawk Power Corp.’s (NYSE:NMK) PowerChoice settlement will help create or retain approximately 8,200 jobs, lower the cost of doing business in New York, enhance regional economic competitiveness and increase household purchasing power, according to an independent economic analysis.
The study, conducted by ICF Resources of Fairfax, Va., and reviewed by economists from Cornell University, the University of Buffalo and Syracuse University, analyzes the impacts of the lower electricity prices proposed in PowerChoice on key economic variables, including employment, real economic output, household purchasing power and costs of doing business in New York. ICF Resources is a consulting company that specializes in economic analysis in the energy field and other sectors.
PowerChoice is Niagara Mohawk’s comprehensive rate reduction and restructuring settlement that was submitted to the state Public Service Commission in October and endorsed by 19 parties representing a cross section of interests. The settlement calls for residential and commercial customers to see average electricity price decreases of 3.2 percent. PowerChoice also calls for industrial price reductions of up to 25 percent from 1995 tariff levels, including existing competitive discounts.
The report concludes that the price decreases proposed in PowerChoice should:
In addition, the improved competitiveness created for companies by PowerChoice are projected to result in an increase in annual output of about $410 million for firms within Niagara Mohawk’s service area and an increase of approximately $490 million for firms state-wide by the year 2002 (in 1992 dollars).
"This economic analysis demonstrates that the benefits of the lower prices proposed in PowerChoice should be substantial for Niagara Mohawk’s customers and New York state’s economy," said William E. Davis, Niagara Mohawk’s chairman and chief executive officer. He noted even greater benefits for customers and the Upstate economy can be achieved if the legislature passes Securitization legislation by early 1998 and continues its efforts to reduce the state’s high utility taxes.
Kerry P. Burns (315) 428-5266