Letter to the NRG - Protect WNY Jobs

Letter

I write today to urge NRG to extend its commitment to providing grey, non-potable water to the businesses in Tonawanda, NY via the recently shuttered Huntley facility. Currently, the facility provides water resources to PeroxyChem, Dunlop Sumitomo, and 3M which account for approximately 4,000 jobs in Western New York. Dupont is currently using its own, outdated water intake, and requires a grey water solution as well. While it is clear that the current set up is not sustainable in perpetuity, it is vital that NRG not rip the rug out from under these businesses, which are crucial to the regional economy. By committing to extend the contract past its current 2019 end date, NRG would provide some much needed stability for these business while the Town of Tonawanda works to take over grey water management.

For decades, The Town of Tonawanda and the Ken-Ton school district relied on the tax revenue -- as much as $13 million in 2003 -- from the Huntley coal plant. Over the years, however, both jobs and revenue to the town have steadily declined. When Huntley shuttered in 2016, 75 good-paying union jobs left the WNY area, and Tonawanda took a $6.1 million hit to its tax base. The loss of revenue forced Town officials to make difficult financial decisions, including closing two schools and laying off 133 teachers. As the Town of Tonawanda faces these challenges, I am aware that NRG's Board of Directors has recently authorized a $1 billion stock buyback plan, with $500 million to begin immediately. I also understand that once assets such as the Huntley plant are sold, NRG expects to execute the remaining $500 million. I think we can agree that continuing to provide grey water is the ethical and decent thing to do for this town that is so desperately in need of the jobs and revenue provided by the businesses that remain in the area.

The Town has been diligent in planning for the eventual closure of Huntley, and management of grey water. Town officials are embarking on a $27 million project that, when complete, will provide the needed water resources to the businesses in Tonawanda. These businesses are relying on the success of this plan and have agreed to partner with the town to fund the project. The Town is working to secure additional funding, and I have committed my support as well. Once all the funding is in place, the project will take 24 to 36 months to complete. NRG's contract will end sometime in 2019. From that point forward, the businesses will be without water resources, and I fear some may decide to pack up and leave the region.

Again, I urge you to extend this contract and keep these good paying jobs and tax dollars here in Western New York. If you have any questions, please do not hesitate to reach out to my office.

Charles E. Schumer

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