Money raised from the sale of excess hydro power from the Niagara Power Project will stay local and not head downstate as it has in the past thanks to a new law signed by Governor David Paterson on Monday.

The law, co-sponsored by State Senators William Stachowski, D-Cheektowaga, and George Maziarz, R-Lewiston, and State Assemblyman Dennis Gabryszak, D-Cheektowaga, will create a Western New York economic development fund to benefit area companies in need of cheap power and outside businesses looking to locate here.

“It’s a landmark piece of legislation in terms of economic development in the Western New York area,” Gabryszak said. “It brings significant resources to the area to be used for economic development purposes that could be used to retain jobs that are here, help companies that are looking to expand and also reach out to bring companies from elsewhere into Western New York. I think it also gives us a great opportunity to develop a niche market in terms of green jobs, a green economy. It gives us that opportunity to become a leader.”

Before this law, money made from selling power not used by companies in a 30-mile radius of the power plant would go to the New York Power Authority to be used however it saw fit. Effective immediately, that money will build the fund, which will benefit economic development in the 30-mile radius.

“In Albany and particularly in Western New York, there’s always this idea that things are skewed toward the downstate area, and that’s true,” Maziarz said. “But this is one bill where Western New York has gotten its fair share of treatment from Albany.”

According to Stachowski, NYPA made nearly $160 million in a three-year period from the sale of unused power.

If the trend continues, it could mean serious availability for businesses to use cheap power, which will attract redevelopment in the area.

“We talk about our young always having to go elsewhere to find jobs,” Gabryszak said. “This gives us the opportunity to help turn that around, to create the opportunity for those students to stay here.”

The three politicians touted the success of the General Motors plant in Tonawanda, the Ford plant in Hamburg and the Yahoo! facility and Delphi plant in Lockport as examples of what cheap power can do for companies.

“Companies will locate where they can get cheap power,” Maziarz said. “This is going to put us on the map as far as our ability to locate companies.”

Under the new law, NYPA will be directed to designate the proceeds from future power sales to various projects. Companies will need to apply for money from the fund and will be evaluated by an independent facilitator.