DUNKIRK — While there’s a new added uncertainty over the repowering of NRG’s Dunkirk plant from coal to natural gas, local and state officials remain hopeful that issues will be sorted out to allow for the refiring to proceed.

The New York Independent System Operator, NYISO, recently informed Dunkirk that NRG’s cost to re-interconnect the plant to the regional electrical power system could exceed $100 million. In addition, NYISO says the Dunkirk plant wouldn’t be able to deliver energy until as late as 2024 due to required transmission upgrades in Pennsylvania and New York.

State Sen. Cathy Young, R-Olean, issued comments Thursday afternoon following questions over NRG’s repowering. Young said the repowering is a high priority and the focus of years of intense negotiations, planning and investment on the part of NRG leadership, state and local officials as well as stakeholders.

“It is outrageous that NYISO has put the entire project at risk by stating that NRG’s cost to reconnect could exceed a staggering $100 million,” she said. “To spring this on NRG now, as the process moves into its final phases, is reprehensible and raises many questions about NYISO’s methods and analysis.”

NRG at one time paid around $8 million, which was disbursed to the city, the school district and the county. That amount decreased as time moved on with activity at the plant dwindling and ending.

With the dropping of a lawsuit in 2016, which halted the repowering project for some time, the county Industrial Development Agency’s Board of Directors in March 2017 approved a new PILOT agreement. Under that agreement, $420,000 is disbursed between the city, school district and county. Of that amount, the school district gets 49 percent, the city 32 percent and the county 19 percent.

The annual $420,000 payment under the agreement would remain in effect until the conversion project’s completion or the school district’s 2022-23 fiscal year and the city and county’s 2023 fiscal year. Payments would ramp up as power generation units kick back in.

With PILOT payments significantly reduced from years prior, state aid is helping balance city, school district and county budgets.

Young said the loss of PILOT payments from NRG would devastate taxpayers who would have to make up the difference. Additionally, Young said Western New York needs the energy that a repowered NRG plant would deliver to enhance its manufacturing sector and tax base.

“Placing these types of hardships on the private sector is why it is so difficult to do business in this state. NYISO needs to examine its own role in creating this challenging environment,” she said. “I am working with NRG and all the parties involved to ensure this project comes to fruition. I urge NYISO officials to join this effort in good faith. Repowering NRG in Dunkirk is a goal that is in everyone’s best interest and one that I will continue to pursue until success is achieved.”

Dunkirk Mayor Willie Rosas said on Thursday that while he’s disappointed to hear about potential delays, he remains hopeful the repowering will happen. Rosas said he’s reached out to the governor’s office and is waiting to hear back. Rosas said the governor has been committed to the repowering as well as state and county leaders.

“This is a major issue for the city,” he said. “It will have a major impact on our budget. I remain hopeful that the state will find a way to intervene and help us out and make sure the repowering does happen.”

Chautauqua County Executive George Borrello said he’s hopeful that the governor can corral the NYISO and get them back to its mission of providing low-cost energy to residents.

“They (NYISO) put a barrier in front of repowering NRG,” Borrello said. “We will advocate to shine light on what’s going on with the situation. To the people of Dunkirk and Chautauqua County, this is far from over. We’ll be certainly fighting to repower that facility.”

Assemblyman Andy Goodell, R-Jamestown, also expressed disappointment in the approach that’s been taken by the NYISO in terms of additional cost and delay. Goodell said when Gov. Andrew Cuomo announced his support for the project years back, it was met with strong and equivocal support from the community.

Goodell said the senator and he have been in discussions over the NRG situation having reached out to the governor’s office and others. He said they’re urging the governor to reach out to the NYISO and follow through on his commitment to support NRG by mitigating the hurdles currently in the way.

The assemblyman also noted the Athenex project that’s underway. And while it’s going to benefit the economy, Goodell said it doesn’t address the loss of tax base that’s reflected in the NRG project.

“While the senator and I were able to get additional funding from the state to offset some of the loss, it’s still a huge financial burden for the city and school district,” he said.