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New York Power Authority rate increase draws heavy criticism
By Tom Wanamaker
ALBANY — A proposal by the New York Power Authority to raise its electricity rates by approximately $24 million has drawn the ire of at least one north country legislator.
At a poorly-publicized public hearing in Albany Thursday, state Sen. Joseph A. Griffo, R-Rome, expressed strong reservations about NYPA’s proposed rate hikes.
“The rate hike you are proposing could not come at a worse time for the communities I represent,” Griffo said in prepared remarks. “Last month, St. Lawrence and Oneida counties posted their worst unemployment rates in more than 15 years. In Lewis and neighboring Jefferson counties, there are more people without jobs than at any time since the 1990s.”
NYPA has three classes of customers, all of whom would be differently affected if the rate hikes are approved:
n Municipalities and rural cooperatives that receive electricity from NYPA would see an estimated increase in their monthly electric bills of 72 cents.
n The three utilities — National Grid, NYSEG and RG&E — get NYPA power that they resell to residential and small-farm customers. These customers would see an estimated monthly increase of 16 cents in their bills.
n NYPA also sells power to out-of-state customers, as required by its federal license. An NYPA spokeswoman could not immediately say how these customers’ rates would be affected.
“The real concern is that this rate increase will affect customers around the state,” Griffo said in an interview. “At least we should have the opportunity to have regional public hearings in northern New York and western New York. This is being done under the radar in Albany.”
The senator also criticized another proposal — this one by the governor. As part of his executive budget, Gov. David A. Paterson proposed a “sweep” of $476 million from NYPA in an effort to help remedy the state’s budget problems.
Paterson’s executive budget proposal calls for $306 million in NYPA funds that would be swept into the state’s General Fund by March 31, while another $170 million would be transferred in fiscal year 2009-10.
“We fought against this sweep,” Griffo said. “In this case there were assurances made that there would be no rate increases, and two weeks later they propose a raise.”
Griffo further questioned a provision of the sweep agreement relieving NYPA of its obligation to invest $8 million over two years in Robert Moses State Park in St. Lawrence County and the Niagara State Park in Niagara County.
“Who makes up this revenue?” Griffo asked. “Now this is $8 million that they don’t have to spend on the parks.
These “voluntary contributions” would be returned to NYPA by Sept. 30, 2017, said NYPA spokeswoman Christine Pritchard, referring to the swept funds.
“Monies being transferred will not have any effect on NYPA operations or capital projects, and will not result in layoffs or reduction of services,” Pritchard said in early February.
Griffo was not satisfied.
“There’s enough question here as to how this is being done that we should scrutinize their operations,” he said. “This public hearing was conducted without fanfare.”
The NYPA Board of Trustees will next meet March 31 but has not, according to Pritchard, finalized its agenda for that meeting. She said Richard M. Kessel, NYPA president, “has asked staff to sharpen their pencils, take a closer look at input we’ve received from stakeholders and testimony provided at [the] forum to look for ways to mitigate the proposed rate increase.”
At a poorly-publicized public hearing in Albany Thursday, state Sen. Joseph A. Griffo, R-Rome, expressed strong reservations about NYPA’s proposed rate hikes.
“The rate hike you are proposing could not come at a worse time for the communities I represent,” Griffo said in prepared remarks. “Last month, St. Lawrence and Oneida counties posted their worst unemployment rates in more than 15 years. In Lewis and neighboring Jefferson counties, there are more people without jobs than at any time since the 1990s.”
NYPA has three classes of customers, all of whom would be differently affected if the rate hikes are approved:
n Municipalities and rural cooperatives that receive electricity from NYPA would see an estimated increase in their monthly electric bills of 72 cents.
n The three utilities — National Grid, NYSEG and RG&E — get NYPA power that they resell to residential and small-farm customers. These customers would see an estimated monthly increase of 16 cents in their bills.
n NYPA also sells power to out-of-state customers, as required by its federal license. An NYPA spokeswoman could not immediately say how these customers’ rates would be affected.
“The real concern is that this rate increase will affect customers around the state,” Griffo said in an interview. “At least we should have the opportunity to have regional public hearings in northern New York and western New York. This is being done under the radar in Albany.”
The senator also criticized another proposal — this one by the governor. As part of his executive budget, Gov. David A. Paterson proposed a “sweep” of $476 million from NYPA in an effort to help remedy the state’s budget problems.
Paterson’s executive budget proposal calls for $306 million in NYPA funds that would be swept into the state’s General Fund by March 31, while another $170 million would be transferred in fiscal year 2009-10.
“We fought against this sweep,” Griffo said. “In this case there were assurances made that there would be no rate increases, and two weeks later they propose a raise.”
Griffo further questioned a provision of the sweep agreement relieving NYPA of its obligation to invest $8 million over two years in Robert Moses State Park in St. Lawrence County and the Niagara State Park in Niagara County.
“Who makes up this revenue?” Griffo asked. “Now this is $8 million that they don’t have to spend on the parks.
These “voluntary contributions” would be returned to NYPA by Sept. 30, 2017, said NYPA spokeswoman Christine Pritchard, referring to the swept funds.
“Monies being transferred will not have any effect on NYPA operations or capital projects, and will not result in layoffs or reduction of services,” Pritchard said in early February.
Griffo was not satisfied.
“There’s enough question here as to how this is being done that we should scrutinize their operations,” he said. “This public hearing was conducted without fanfare.”
The NYPA Board of Trustees will next meet March 31 but has not, according to Pritchard, finalized its agenda for that meeting. She said Richard M. Kessel, NYPA president, “has asked staff to sharpen their pencils, take a closer look at input we’ve received from stakeholders and testimony provided at [the] forum to look for ways to mitigate the proposed rate increase.”
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