Private-Power Victory

UTILITIES Private-Power Victory For three years, five New York State utility companies* have wanted to build a $400 million hydroelectric plant to harness the Niagara River (TIME, June 16, 1952). But getting permission to go ahead was as grueling as negotiating the falls in a barrel. Public-power interests, which want federal agencies to do the job, blocked them; New York's Governor Thomas Dewey insisted that Niagara development ought to be a state responsibility.

Last week the utilities won an important victory. In Congress, the House passed a bill approving the utilities plan. But a group of Senators warned that they will try to block the bill on the Senate floor.

Unlike great river-valley projects such as TVA and Bonneville. Niagara development does not involve flood control, irrigation or reclamation; the only big issue is whether private or public power is to develop Niagara's 1,500,000 potential kilowatts. The utilities insist that they can build a hydroplant for millions less than the Government or the state, and without dipping into federal funds. Their rates would probably be slightly higher than those set by public power, but the difference would be repaid with $23 million a year in taxes, which public projects do not have to pay.

*Consolidated Edison, Central Hudson Gas & Electric, Niagara Mohawk Power, New York State Electric & Gas and Rochester Gas & Electric, which together serve 90% of New York State.

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