More doubts

An abrupt change in construction schedule for the Galloo Island Wind Farm wipes out the primary justification for the Jefferson County Industrial Development Agency's rush to approve a project-specific payment-in-lieu-of-taxes plan for the venture.

Upstate NY Power Corp. does not intend to begin construction this year, contrary to what was claimed time and again in the rancorous debate over the PILOT plan approved by the town of Hounsfield, Sackets Harbor School District and the Jefferson County Legislature. The developer and JCIDA repeatedly pressed for swift action so construction could start this year to be eligible for a 30-percent federal subsidy of the project.

Now, Upstate attorney Robert W. Burgdorf said recently, it appears the federal credits will be extended for another year. Construction could start in 2011 but even that is just "a goal," so the schedule could slip even further. So much for that all-important deadline at the root of the debate over Upstate obtaining additional benefits beyond what it was already entitled to.

However, that is not the only uncertainty surrounding the project to emerge since the county board gave the final go-ahead in February.

The developer could have trouble lining up investors since Upstate has yet to secure a power-purchasing agreement guaranteeing the sale price of 246 megawatts of electricity generated by the wind farm. Such revenue assurances are a key element in obtaining financing.

The New York Power Authority dashed hopes for one possible source of contracts when it decided against buying any wind-generated power from any project in Jefferson County. Its action followed the county Legislature's rejection of a NYPA plan to place wind turbines off Jefferson County in Lake Ontario.

But the developer does not know yet how it will get the electricity from the island to the downstate power grid.

Despite all this, the JCIDA pushed the PILOT as a must-do plan as it sidestepped the Legislature's initial directive to draft a uniform PILOT for this and future wind projects.

The Legislature should now hold JCIDA accountable. Lawmakers now have plenty of time to revisit the tax benefit package and the IDA's failure to develop a uniform countywide PILOT.