In all fairness, the massive niagara power project was paid for by the taxpayers of NYS (all of them, even those Long Islanders) and they should reap the benefits of their investment.
It would make more sense to talk about making NYC pay for it's own subway that you and I don't use, rather than trying to cheat the citizens of NYS of thier investment returns.
And, just where do you "draw the line"? Batavia? Rochester?