Oswego council approves amendment with Siemens to continue High Dam hydro upgrades

The Oswego Common Council on a unanimous 7-0 vote authorized Mayor Robert A. Corradino to sign Amendment No. 1 with Siemens Industry Incorporated to continue an energy improvement project at the city's High Dam hydroelectric facility.

The vote authorizes a contract amendment under a 2023 energy performance agreement with Siemens that covers upgrades including relay replacements and turbine work. "Make no mistake. A high dam is a business that produces income for the city and a business must invest in its assets to continue to operate and to be profitable," Corradino said during the mayor's report.

Why it matters: City officials outlined that the upgrades would allow the facility to sell power on the retail market — which the mayor contrasted with wholesale rates — and to market renewable energy credits (RECs). Corradino said the High Dam has a maximum output of about 10 megawatts, produced roughly $188,000 in December, and that the city sold over $90,000 in RECs in 2024 and has "minted over 25,000 RECs so far to be sold in 2025." He also said Unit 1 is offline for repairs while Units 2, 3 and 4 are operating.

Discussion and direction: Corradino and staff described the project as part of a broader 2023 energy performance contract that also funds lighting and HVAC upgrades across city facilities and replacement of about 3,000 street lights. He said the original plan to rehab Unit 4 was revised to focus funds on Units 2 and 3. The mayor said the city received $1.3 million in Department of Energy funding and is negotiating terms for an additional $2.3 million grant to reduce the project's net cost, which he described as a $9.7 million investment before grant offsets and bonding.

Officials said relay upgrades will permit retail market sales, which Corradino contrasted in the meeting with a wholesale market price of about 2¢ per kilowatt-hour versus about 20¢ per kilowatt-hour on the retail market. Councilors asked no recorded substantive questions during the public discussion reported in the transcript; staff indicated continued oversight of contractor work.

Formal action: Resolution 41, authorizing the mayor to sign Amendment No. 1 with Siemens Industry Incorporated for the energy improvement project at the High Dam hydroelectric facility, passed 7-0. The council will vote separately to approve any selected broker or marketing agreement for RECs once staff completes negotiations, the mayor said.

Background: Corradino noted the High Dam has operated for nearly 100 years and that seasonal river flow makes fall through spring a better period for generation. The mayor characterized the overall energy performance agreement as bonded and said the city did not use general fund dollars for the contract.

What the resolution does not do: The council’s authorization was limited to signing the amendment with Siemens; the transcript does not show the council approving a REC broker agreement, nor does it contain finalized values for the 25,000 RECs the mayor said were minted.

Ending: Corradino closed the discussion urging support for the resolution; the council approved it unanimously.