Niagara Falls Council Narrowly Approves New Hydropower Deal with NYPA

     A divided Niagara Falls City Council has approved a new long-term energy agreement with the New York Power Authority, clearing the way for continued access to low-cost hydroelectric power tied to the Niagara Power Project.

     The measure passed by a 3-2 vote and authorized Mayor Robert Restaino to sign the updated agreement, which replaces a previous pact that had expired. The deal ensures the city remains part of a group of designated “host communities” that benefit from power generated at the Niagara facility.

     Council members Vincent Cauley and Bridgette Myles pushed to delay the vote, arguing more time was needed to evaluate the terms. Cauley specifically raised concerns about the timeline, stating he had not had enough time to “consider” the agreement. Their effort to postpone the decision was unsuccessful as Council Chair Brian Archie, along with members James Perry and David Zajac, voted in favor of moving forward.

     The agreement stems from longstanding arrangements established when the Federal Energy Regulatory Commission renewed the operating license for the Niagara Power Project in 2007. Those terms created benefits for eight host communities including Niagara Falls, Niagara County, the towns of Lewiston and Niagara, the Tuscarora Nation, and several local school districts. Each participating entity operates under identical 18-year agreements, and Niagara Falls’ approval also extends to the city’s school district.

     City officials emphasized that the new deal is the product of extensive negotiations. In a memo urging approval, Restaino described the agreement as the result of “months of painstaking work,” adding that participating communities have “secured superior and more equitable replacement agreements.” He also credited attorney Edward “Ned” Perlman, who represented the host communities in negotiations, for helping shape the final terms.

     Perlman briefed council members ahead of the vote, noting that half of the eligible host communities had already signed on. He defended the updated structure, telling lawmakers, “Every change that has been made has really benefited the city over the 2007 agreement.”

     The agreement continues to provide Niagara Falls with access to low-cost electricity, a key economic advantage tied to its proximity to the hydropower facility. Perlman explained that beyond direct savings, the structure also offers flexibility in how unused power is handled. He said surplus allocation could be converted into revenue, describing how excess energy could be turned into “some cash.”

     Financially, the impact of the previous agreement has been significant. According to Perlman, the city saved approximately $1.591 million on electricity costs in 2025 alone. Under the new framework, officials say there are additional opportunities to generate income, including the ability to sell unused energy credits “at a profit.”

     While supporters framed the agreement as a clear benefit that strengthens the city’s long-term financial position, dissenting council members raised concerns about the speed of the decision-making process. Despite those objections, the approval ensures Niagara Falls will continue to receive its share of hydropower benefits as one of the project’s host communities for years to come.

Niagara Falls Council Narrowly Approves New Hydropower Deal with NYPA