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Rate hikes for WNY power following budget deal to shift 'surplus' funds to state

By Howard B. Owens

Hard-hitting piece this morning from Donn Esmonde of the Buffalo News about a planned NYPA rate hike following a budget deal to shift $500 million to the state budget.

The rate hike was predictable, Esmonde says, and several WNY legislators went right along with the plan in order to assist down-state interests.

Power Authority officials contend that the spike is not connected to the $500 million it let Albany use to caulk its budget gap. But common sense tells you that when $500 million disappears, there is—one way or another—a price to pay.

“That $500 million was going to come out of somewhere,” said Assemblyman Jim Hayes, an Amherst Republican. “Don’t these people understand how much the average family is hurting?”

The double drilling—the $500 million siphoning, followed by the rate hike —started when state legislators last month OK’d the budget deal. Most of the supposedly “surplus” dollars—which could have been used to cut rates or help businesses—came from the Power Authority’s cash cow, the hydropower plant in Niagara Falls.

On Saturday, we also posted a piece about NYPA blocked Google from opening a 200-job facility in Medina.

Thanks, NYPA.

dennis wight

NYPA is unbelievable!!! We have all this power to sell to other areas, but not enough to power businesses that want to be here?!? WE NEED JOBS HERE!!!!Who are the idiots in control of NYPA, maybe they should be looking for a job..
Article from WGRZ Buffalo.

State Senator George Maziarz says the New York Power Authority prevented not one, but two companies from bringing hundreds of jobs to Western New York.

"I negotiated with Google to locate a data center here in Western New York," said Maziarz (R-62nd District).

Maziarz says the Google deal for Orleans County fell through because the power authority didn't have the amount of power Google needed.

"The spinoff from this data center would have been enormous for Western New York," said Maziarz.

"How many jobs are we talking," 2 On Your Side's Josh Boose asked Maziarz.

"It all depended on the power," he replied. "If they got 20 mega watts of power, I think it was 150 jobs."

A Western New York trustee of the power authority says that's not why Google didn't come here.

"It was a transmission problem, not an availability problem," said Pat Curley, NYPA Trustee. "In certain roads when you go down a rural road, those wires you see following you down the railroad tracks, they have a capacity and you cannot exceed that capacity."

But Maziarz says there were more projects that fell through.

"Wacker Chemie wanted to locate here," Maziarz said. "It was a German chemical manufacturing company and would have employed hundreds of people in Niagara Falls but no, they said, we don't have the power for you"

But it's a different story downstate where the power authority was able to help another company create jobs on Long Island.

"That's one megawatt out of 15 they're going to get," said Curley. "For that, they're going to retain three thousand jobs, create 1,000 jobs and add 100 administrators and spend $900 million."

2 On Your Side contacted Google. The company declined to comment.

NYPA is also implementing rate increases in Western New York.

Mar 23, 2009, 5:34pm Permalink
Scott Strang

So true, Dennis.

Let's just give New York City everything they need. ...or want? Crazy.

As for the distribution limitation, I understand, but perhaps this needs to be addressed. I definitely believe we need to upgrade a few major circuits to rural areas. Concessions were made with great speed to accommodate the new ethanol plant's electrical demand [albeit privately funded with major government subsidy and incentives].

It is startling what government dollars can do compared to an equivalent amount of private funds. Seems like the red tape gets thinner for government projects, eh? Well of course it does.

There is this growing political opposition, or perhaps not so much opposition as lack of concern for the growth of small business among today's politicians. Let's just pump tax money into the goliaths and empower the powerful.

Ya see, it doesn't work this way for successful monster companies that once came from the small business sector. Remember what the government did to Bell telephone? Sure... a monopoly... They split the company up into smaller companies so as to dissect the controlling assets. Yet when a company.... say "AIG" or "GM" etc. fails.... well... no one does that. Instead we feed the beast with more tax money. Instead, maybe some pruning is in order? Perhaps the failing behemoths should be dissected as well and let the "rotting" parts fall to the ground.

The general current thinking... "Well there are so many jobs at stake, we must save them." So when a small company like Google seeks to start a venture to employ 200 people... it's small bananas. I can hear the politicians now, "Is it really worth pursuing the additional electrical infrastructure required to generate a meager 200 jobs?"

Another 200 jobs created elsewhere, not in Western New York.

Count your pennies and your dollars will take care of themselves.

Benjamin Franklin would be appalled.

Mar 23, 2009, 8:13pm Permalink
Gabor Deutsch

On last nights news program the rate hike they wanted would have raised electric bills approximately 16 cents a month. I find that reasonable considering electricity is so important for everything in our daily lives. I just wish that the increase would be spent fixing our outdated lines and grids, or attracting businesses here by offering a reduced rate. Right now anything called a bonus, raise, etc. is going to be under suspect. Somebody should focus on the telephone companies and all the increases they charge. They charge a tax on the tax for the tax. Ever read your phone bill ?

Mar 24, 2009, 11:33am Permalink
Karen Miconi

They don't give a RATS BEHIND about any of our financial woes. Its all about lining their pockets. A tax for this, a tax for that.....A Raise, A Bonus, hidden fees, sucking us dry like a spider, with a fly in her web. Like I've said a MILLION TIMES its all about NYC. If Upstate Ny was independant, then we could tell them to STUFF IT!
Just My Opinion

Apr 20, 2009, 3:29pm Permalink

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