The zones are just one part of the governor's economic development plan, building on the successes brought about by several years of tax cuts. It hinges on the Empire Opportunity Fund, a $750-million program modeled on the state's Centers for Excellence program that is expected to be boosted to $2 billion once revenues from newly expanded gaming across the state kick in. The program will support major capital infrastructure, construction and other economic development projects that create and retain jobs or build capacity for future job growth
        While the governor will dedicate $50 million to the start of that program, he will continue championing the growth of high-tech and biotech development with $250 million in seed capital. Meanwhile, the Centers for Excellence program, already rolled out in Buffalo, Rochester, Albany and Long Island, will continue to expand, in the hopes of adding to the more than $400 million in private and federal investment dollars it has already attracted since its launch in 2001.
        Paying heed to infrastructure issues, Pataki plans to dedicate funds to renewable energy projects and to dedicate more than $1.73 billion toward transit systems statewide, highlighted by major projects in New York City. In February, Pataki announced the formation of the New York State Water and Sewer Infrastructure Co-Funding Initiative -- a long name for an effort that will shorten the funding journey for community water and sewer projects.
        Electricity is the longstanding bugaboo for the state. Recent figures from the Energy Information Administration show total expenditure for electricity and natural gas in 1999 ranked the state No. 3 in the nation, and at $29.16 per million btu, the state ranked 6th in cost, about $10 higher than the U.S. average.
        Of the state's 47 electric utilities, most of the largest are investor-owned, with Rochester Gas & Electric the largest publicly owned entity.
        But another, Niagara Mohawk, is marketing its hydropower (less than two cents per kilowatt/hour) as a drawing point, with a $500,000 ad campaign and the governor's blessing.
        "Niagara hydropower is a limited and valuable resource," says NYPA Vice Chairman Louis P. Ciminelli. "It currently helps to protect 50,000 jobs at more than 100 companies in Western New York. By reallocating power from companies unable to meet job commitments, we will put it to use in creating new jobs on the Niagara Frontier."
        Those job commitments he refers to are part of another program, Power for Jobs, which rewards job creation with low-cost power. Whenever a volume of power exceeding 10,000 kilowatts becomes available, NYPA makes it available to industries within 30 miles of the project through its Replacement Power program.
        The program is in line to be continued by Gov. Pataki, who said in March that the program had overshot its goal of creating or retaining 40,000 jobs by about 260,000. The Governor's proposal would make available another 183 megawatts, bringing the total to 450 megawatts offered to expanding or locating companies at a 10 percent to 25 percent discount.
        This is a program that works for New York State," says Gargano, adding that the state's General Assembly has historically supported the program.
        Other power projects in the works include a 500-megawatt natural gas cogeneration plant and recycled newsprint facility in Rensselaer, to be built by the Besicorp-Empire Development Co. on the former site of a BASF chemical manufacturing plant. Further reuse of old space is planned by Energy East Corp., which hopes to be operating a natural gas storage facility in the town of Reading by late this year, hooked into the interstate pipelines of Columbia Gas. PSEG Power New York plans to build a $400 million, 750-megawatt natural gas fired plant south of Albany, expected to replace an existing plant in 2004 while doubling its output and reducing usage of Hudson River water.

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