Another vital North Country state authority faces lay-offs, banktruptcy

The Hudson River-Black River regulating district is one of the most important state-run authorities in the North Country, managing dams and rivers from Watertown to the Adirondacks.

The HRBRRD operates the massive Great Sacandaga Reservoir.

Its operations prevent flooding along the Hudson River, saving Capital Cistrict and down-valley communities tens of millions of dollars in potential damages.

But a court ruling in 2008 essentially stripped the authority of its prime source of revenue.

Now, executive director Glenn LaFave says “the Hudson River Area is literally running out of money…”

This week, the Regulating District laid off twelve workers.  LaFave says core operations will continue:

“We are obligated to carry out the Regulating District’s mission of flood control and flow augmentation, and will perform the very basic operations and continue to safely maintain our dams and reservoirs with the barest, minimum crew necessary. ”

Below is the balance of the HRBRRD’s press release, which includes an explanation for how the funding crisis began, and why the Hudson River area is being affected more than the Black River region:

On March 30, 2010 the Regulating District Board adopted a Hudson River Area Apportionment.  This Apportionment shifts certain costs from the hydropower companies along the Hudson and Sacandaga Rivers to Albany, Rensselaer, Saratoga, Warren and Washington Counties, as these counties derive a flood benefit from the Conklingville Dam on Great Sacandaga Lake, maintained and operated by the Regulating District.   The Regulating District has received no revenue from the counties.

On November 28, 2008, the United States Court of Appeals in the District of Columbia issued a decision against the Federal Energy Regulatory Commission (FERC) which impacts the Regulating District’s authority to assess downstream FERC-licensed hydroelectric projects. The result has been a revenue shortfall, approaching $4.0 million of the Regulating District’s Hudson River Area $5.4 million budget. Until completion of a FERC-ordered Headwater Benefit Determination to quantify the benefit received by the hydroelectric projects downstream from the Conklingville Dam and Great Sacandaga Lake, the Regulating District is not allowed to assess these hydro plants.

When the Hudson River Regulating District and Black River Regulating District were combined in 1959, the enabling legislation required the two watersheds maintain separate budgets and funds.  The FERC ruling does not affect the Black River watershed or its finances.  Bills have been introduced in the NYS Senate and Assembly that would allow the Hudson River Area to borrow from the Black River Area, but the bills have not yet passed.