News Release

June 5, 2006

The Hudson River-Black River Regulating District announced today that it has settled eleven (11) legal proceedings that had been brought against the Regulating District by Erie Boulevard Hydropower, L.P. (owned by Brookfield Power).  These eleven proceedings challenged the Regulating District’s budgets and assessments for the years 2000-2005.  As part of the settlement, the Regulating District agreed to credit Erie Boulevard from existing reserve funds amounts to be applied against Erie Boulevard’s assessments for the next three fiscal years.  In addition, the Regulating District will apply monies from its Hudson River Assessment Stabilization Fund to benefit all of the beneficiaries in the Hudson River watershed.  Use of these funds will not entail any increase in the Regulating District’s budgets and, therefore, will not have any economic consequence for holders of permits on the Great Sacandaga Lake.  In addition to discontinuing all eleven legal actions, Erie Boulevard agreed to waive any right to bring similar proceedings against the Regulating District during the next three years.

“After months of negotiations, we are pleased to settle this litigation out of court,” stated Glenn A. LaFave, Executive Director of the Regulating District.  “We feel it is a fair and equitable solution for Erie, our other beneficiaries and stakeholders, and the Regulating District.  As we move ahead, we look forward to re-establishing our excellent working relationship with Erie.” 

The settlement, signed by Erie, the Regulating District and the Attorney General of the State of New York on behalf of the Office of the State Comptroller and others, was approved by Justice Richard T. Aulisi on May 23, 2006 and Justice Michael Daley on May 26, 2006.