Lake Unloading Project

NOTE: AES is proposing to build a $25 million lake unloading facility at its power generation facility in Niagara County.  Below are frequently asked questions about the project.

What is a lake unloading facility?
A lake unloading facility is a structure where vessels can deliver bulk commodities to facilities such as the AES generating facility.  The Lake Unloading Project (LUP) at the AES facility will involve the construction of an approximate 3,200 foot long pier designed for the unloading of coal and limestone.  The pier would be designed to incorporate both an inhaul conveyer system and a loading hopper to facilitate the self-unloading of vessels.

Why does AES need to build a lake unloading facility?
AES desires to build a lake unloading facility for many reasons.  The company is operating in extremely competitive state, national and international marketplaces and cost savings are vital to its operations.  In this instance a lake unloading facility provides a transportation alternative to help reduce the cost of the shipment of raw materials and enhance critical energy infrastructure.  The construction of a lake unloading facility also will help retain over 150 management and union jobs currently at the plant. The lake unloading facility will also make a significant contribution to the operational security of the power plant.

How will the lake unloading facility be constructed?
After significant studies and a review of similar type facilities on Lake Erie and on Lake Ontario's northern shoreline, it has been determined that in order to provide the required mooring depth of 33 feet to accommodate vessels, a pier of approximately 3,200 feet will be constructed from the shoreline extending into Lake Ontario.  The length of the pier was determined to be the distance necessary to achieve reliable water depth that would avoid the need for dredging of the lake bottom. The pier will support a ship mooring location, loading hopper and an in-haul conveyer.  The balance of the pier will consist of galleries spanning 200 feet which will carry a 60" wide conveyer belt.  A walkway on either side will provide a means of access for maintenance.  The pier will be attached to a concrete abutment at the shoreline, which will anchor the pier and act as a loading area.

What will be the economic benefits of this project for the region?
While we cannot quantify the exact economic benefits at this time, the project would create approximately 100 construction jobs for almost a two year period.  These are good paying jobs with excellent benefits.  Such an investment also will add value to the property resulting in new revenues for Niagara County, the Town of Somerset and the Barker schools.  Finally, the project will help retain over 150 management and union employees who currently work at the generating facility.

What impacts will there be on Lake Ontario and the shoreline during construction and operation?
Any impacts of this project, including the project's impact on the shoreline will be part of a comprehensive environmental review as required by Federal and New York State Laws.  As part of this review there will be a number of public hearings so the community can learn more about and comment on the project. AES intends to reach out to as many groups and organizations as possible to provide and receive more information about the lake unloading project throughout the entire review process.

Will AES be seeking a Payment in Lieu of Taxes (PILOT) for this project and investment?
AES will be meeting with officials from the Niagara County Industrial Development Agency to discuss a PILOT arrangement that is fair for the company while providing revenue certainty for various taxing jurisdictions, including Niagara County, the Town of Somerset and the Barker schools.  Like most companies investing in Niagara County and Western New York for that matter, AES will be seeking whatever assistance is available to off set the cost of doing business in New York State's highly competitive market.

What regulatory approvals does AES need to build the lake unloading facility?
The lake unloading project will require various regulatory approvals primarily from the New York State Department of Environmental Conservation and the U.S. Army Corps of Engineers.  In addition, an Environmental Impact Study (EIS) will evaluate a wide range of impact categories, including water quality, fisheries, noise, terrestrial/erosion, community character and many others.  As part of this process there will be various public hearings conducted by governmental agencies where input about these potential impacts will be taken into consideration in preparing the environmental impact statement during the regulatory review process.

What if for whatever reason AES is not allowed to build this facility?
We are confident that once the community learns about the positive impacts of this facility including in the areas of critical energy security, retaining jobs, new revenues for local governments, the creation of significant number of union construction jobs, and the completion of a thorough regulatory review process that our project will move forward.

Given the controversy regarding the PILOT agreement between AES and the NCIDA do you think that the community will be opposed regardless of the benefits the project will bring to the region?
We realize there may be hard feelings among some in the community regarding the PILOT agreement for our generating facility.  It is our hope that all parties can move forward and work constructively for new investment and growth for Niagara County, the Town of Somerset and the Village of Barker.

It has been mentioned that the construction of a lake unloading facility on the site of the AES generating station is vital to energy security issues.  What does this mean?
The lake unloading facility will increase national and state energy security by continuing investment in a state of the art clean coal generating facility using an abundant and secure fuel source thus avoiding the supply interruptions and price volatility often associated with natural gas and oil. The facility also will promote fuel diversity to balance New York's energy portfolio and stabilize energy costs to commercial and residential customers.  Finally, the lake unloading project will provide national homeland security benefits by providing a dual transportation source for critical energy infrastructure vital to the nation's supply chain.