Dec. 11--PLATTSBURGH -- Saranac Power Partners and three local taxing jurisdictions expect to reach a revised payment-in-lieu-of-taxes agreement.

County of Clinton Industrial Development Agency Executive Director Adore Flynn Kurtz said that while everyone is not overjoyed by the outcome, worse scenarios were possible.

"We have been, over the last year, working to find a solution that serves the company and the taxing jurisdictions. We have come to an agreement where the taxing jurisdictions all feel comfortable."

Saranac Power Partners has a big impact locally because of the large payments it has been making to local municipalities for the past 15 years -- almost $34 million total.

Kurtz said it's also important to keep the plant running to protect jobs there and to make sure the natural-gas pipeline that supplies Saranac Powers continues to operate.

The use of natural gas to make electricity also produces steam used by both Georgia-Pacific and Pactiv.

WANTS LOWER PILOT

Under the present PILOT agreement, Saranac Power Partners paid a total of $2.125 million to the Town of Plattsburgh, Clinton County and Beekmantown Central School District.

Saranac Power Partners has asked that the PILOT payment be reduced to $1.7 million in 2009 and to $700,000 in subsequent years of a tolling agreement it is negotiating.

The company's original amendment proposal called for payments of $500,000 per year.

Under the 2009 PILOT agreement, the town will receive 60 percent ($1.27 million of the $1.7 million), while the county and School District will receive 20 percent ($340,000) apiece.

CONTRACTS

Saranac Power Partners asked for the reduction because a contract that calls for New York State Electric and Gas to purchase the electric power produced at the plant expires next summer.

The company is trying to reach a tolling agreement with an energy provider to sell its power at a moment's notice when demand warrants.

Kurtz said that having a renegotiated PILOT agreement in place will help the company do that.

"We're trying to move forward to help Saranac Power Partners reach the best tolling agreement they can," she said.

"The taxing jurisdictions were engaged, collaborative and cooperative."

PLANT CONDITION

The IDA retained Conestoga-Rovers and Associates, an utility consulting and engineering firm based in Buffalo, to evaluate the condition of the plant.

The report concluded the plant is in top-notch condition, Kurtz said, even though it uses slightly older technology.