She made the commitment after walking through the East Hydro plant with Potsdam Mayor Ron Tischler, Village Trustee Eleanor Hopke, Potsdam Village Administrator Everett Basford and Potsdam Planning and Development Fred Hanss and being provided with an update on the challenges facing the village's hydropower facilities.
"I have pledged to work to secure $250,000 in state funding so the village can start work on this project as soon as possible. It's a project that helps pay the village's bill. It generates additional aid for the community in addition to creating green energy so this is a top priority for me," Assemblywoman Russell said.
Mayor Tischler said he was thrilled with the assemblywoman's support. "It's a big step in the right direction," he noted.
The East Hydro plant consists of two 400 KW generators utilizing a Kaplan turbine designed for a low-head dam.
This installation was completed and placed in operation in 1983. It has operated since then with only minor maintenance issues - gearbox bearings replaced in 2004 - until major maintenance issues in 2014.
In the late summer of 2014, one unit experienced gearbox bearing issues and was taken out of service. In that December, the remaining unit experienced problems but continued operations until February 2015 when it to was taken out of service.
The first unit was then refitted with new bearings and placed back in service, but within 11 days it experienced catastrophic bearing failure and remains out of service.
The revenue produced from the two units allowed for offset of property tax and other expenses of village operation. Some of this revenue was also used to help pay for the development of the West Hydro project.
Mr. Basford said the grant will help the village to undertake this complete refurbishment, expected to cost $1 mill to $1.3 million, without having to place the entire burden on the resident taxpayers.
"In the village's current financial position, the village will have to bond the project cost, adding to the current tax burden. The village currently has a remote net metering agreement, which will allow the village to use the power from this facility to offset the cost of electricity for our water, waste water, and arena facilities. This would be a large savings to the village taxpayers," he said.
Mr. Basford said it is anticipated that a complete refurbishment of the East Hydro facility would increase the plant's generating life 20 to 30 years.
"Receiving this grant could reduce the cost of financing and make the return on investment much more feasible. In current rough estimates developed by former Mayor Steve Yurgartis, the return on investment was projected to be approximately 12 years. This grant could shorten that by at least two years. These figures are estimates only and will be affected by final total project cost, cost trend of electricity and several other factors," Mr. Basford acknowledged.
The village is also in the beginning stages of a project with NYPA to prepare a financial feasibility study of the East Hydro facility. This will include reviewing past revenue streams including electrical rates and future projections.
In addition to a direct tax benefit to the village residents, it is anticipated the village may participate in the Potsdam Micro Grid project, which will create a reliable network of power in a prolonged emergency.
Hydroelectric power is considered one of the most reliable sources of electrical power. This would be a regional benefit in the case of a large scale event.
IN THE PHOTOS:
TOP PHOTO:
Potsdam Village Administrator Everett Basford explains the issues that have taken the village's East Hydro facility off line.
BOTTOM PHOTOS:
Potsdam Village Administrator Everett Basford tells Assemblywoman Addie Jenne Russell about the steps the village has taken in an effort to gets its East Hydro facility back on line.
Potsdam Village Trustee Eleanor Hopke (l) and Potsdam Village Administrator Everett Basford talk about issues facing the village of Potsdam with Assemblywoman Addie Jenne Russell.
With the water from the Raquette River that powers the East Hydro facility in the background, Assemblywoman Addie Russell visits with Potsdam Mayor Ron Tischler.
