Archive for October 31st, 2006
The Buffalo News weighed in on the Audit of the New York State Power Authority.
Brian Higgins comes to the same conclusion I did:
“The audit confirms that Western New York and our natural resources are being used by the power authority to subsidize abuse and inefficiency statewide” he said.
Higgins is now calling for more cheap hydropower to spur business development in Western New York. That is all well and good but does not go far enough. He should be making a case for a significant reduction in rates charged to residential customers in WNY as well. Lowering residential rates would also spur the economy by increasing the disposable income of area residents.
The settlement Higgins contributed to with the Power Authority last year to earmark money to waterfront development now looks like peanuts. We get $5 million per year yet contributed $112 million to the bottom line of the Power Authority, despite gifts of $53 million to the State of New York.
My original thoughts on the deal with the Power Authority, published December 17, 2005 on the Free New York Blog, have been confirmed by this audit.
Brain Higgins “victory” amounts to being bought off with a few crumbs by an agency that operates with impunity. . . . Was Pataki perhaps protecting a source of secret funding for items not in his budget? Where does all the money go? We are paying one of the highest rates for electricity in this country. . . . The Power Authority, with virtually no accountability, is a huge drain on the economic resources of our area. It is a factory for patronage and slush funds. Brian Higgins will receive my congratulations when he provides us with the answers to these questions.
The audit still does not answer the question, where is the money going?
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The New York State Power Authority has been one of my pet projects. I have always felt that the rates we, in WNY, pay for electricity is tantamount to larceny. This is truly price gouging, not the allegations you read about tree trimming services and the cost of gasoline. In those transactions, people have a choice. We have no real choice when it comes to electricity, we are subject to the monopoly created by the State, known as the New York State Power Authority.
I have kept in contact with the State Comptroller’s Office since last winter, anxiously awaiting the results of this audit. My last communication with them was last Wednesday, which I published here. A full list of my articles on the Power Authority can be found here.
Upon my initial analysis of the audit, my suspicions, that WNYers are paying too much for electricity, have been confirmed. We are already subject to the largess of Albany and neglected by downstaters. Our economy is a mess compared to downstate. Stealing our money to subsidize the rest of the State is adding insult to injury.
My recommendation is the immediate dismantling of the New York State Power Authority and the privatization of the Niagara Power Plant. The plant should be run with the financial benefits staying in our neck of the woods. Obviously, there are details that would need to be worked out in order for this to work, that is not the purpose of this article. Now that I’ve given my general analysis and recommendation, you can follow the jump for actual numbers and excerpts from the audit.
Continue Reading “Hevesi Released Audit of the New York State Power Authority Monday” »
