CITIZEN POWER ALLIANCE

Gas-drilling tax proposal stirs protests in Albany

2009-03-26T17:04:00.000-04:00

ALBANY - Southern Tier business leaders came to the Capitol on Wednesday to try to beat back an attempt to impose a new state tax on oil and gas producers.

"We don't want to kill the golden goose before it lays an egg," said Brad Gill, executive director of the state Independent Oil and Gas Association.

The Assembly is considering a plan to impose a tax of possibly 5 percent on the value of gas and oil drilled in the state, even as producers are planning to dramatically increase drilling to tap into the Marcellus Shale formation. The drilling is expected to be an economic boon to the region and a huge producer of energy.

"Our position all along has been that this upstate economic opportunity is one that must be nurtured, and that attempts to overtax and over-regulate will result in non-development of the assets," said Lawrence Brinker of the Greater Binghamton Chamber of Commerce.

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Public Service Commission says NYRI Powerline decision will come in August

2009-03-26T16:48:00.000-04:00

(WKTV) - The secretary of the State Public Service Commission says the commission will have a decision the first week of August on the Powerline that New York Regional Interconnect wants to put through Central New York.

It was 2006 when NYRI officials first came to Oneida County to meet the public.

In October 2006, Governor George Pataki signs a bill, at SUNYIT, stating the power company can not take land through eminent domain.

In February of 2007, NYRI sued Pataki over the bill.

And just a few months ago, some members of the Public Service Commission suggested that the proposed line does not need to be built, and there is no need for extra power.

The project has been in the hands of the Public Service Commission for almost a year.

When the PSC does make their final decision, they will have three options - approve the project as is, reject the project, or they can modify it.

Paterson seeks utility surtax

2009-03-26T15:28:00.001-04:00

Proposal would add 2% to everyone’s bill

ALBANY — Gov. David A. Paterson this week rushed to protect consumers from the New York Power Authority’s plan to boost electricity rates by $10 million.

But behind closed doors, Paterson this week also is trying to impose higher surcharges on utility companies that would end up costing consumers of electricity, natural gas and telephone service at least an additional $531 million in the coming year.

If the governor’s plan succeeds—and sources Wednesday said the idea is very much alive at the budget negotiating table— industry officials predict it will add 2 percent to every utility bill across the state.

So, consumers won a minor skirmish with the Power Authority’s retreat, critics say, but they are now in line for a much larger pocketbook hit.

O’Mara sponsors energy-buying legislation

2009-03-11T11:46:00.000-04:00

Assemblyman Tom O’Mara, R-Big Flats, is sponsoring legislation that would create the Bulk Energy Electricity Program.

Assemblyman O’Mara noted that the amendment and corresponding legislation (A.2056) would reduce energy costs to the state by seeking more cost-efficient solutions with respect to electricity.

Under the legislation, the New York State Office of General Services would administer the Bulk Electricity Purchasing Program and make it available on a voluntary basis to state agencies, municipalities and school districts. OGS will be tasked to ensure that each contract for service entered into is with the lowest responsible bidder, provides for service and maintenance and gives additional amounts of electricity at the bulk rate in sufficient quantities in the event of an emergency.

“Bulk purchasing of electricity will help reduce costs for school districts and local governments and may result in lower property taxes,” O’Mara said. “It is important for the Legislature to encourage bulk buying on state and local levels as a way to lower energy costs, save important tax dollars during these tough economic times and encourage energy conservation.”

The legislation is expected to be brought to the Assembly floor for a vote via the amendment process in the coming days.

Power lines: Reid plan intrudes on states' jurisdiction

2009-03-09T10:47:00.001-04:00

The federal government could one day come in and tell north country farmers and other property owners that they have no choice but to allow a proposed transmission line carrying wind-generated power to cross their land. And adding to the affront, they might have to pay for it, too.

That's the thrust of legislation introduced by Senate Majority Leader Harry Reid, D-Nev., to give Washington expansive new powers to build thousands of miles of power lines needed to ensure the country meets its long-term goals for increasing reliance on electricity from renewable energy sources.

The reliability and capacity of the country's aging power grid to carry the power from distant sources have been questioned. By one estimate, as many as 15,000 miles of high-voltage lines will be needed crisscrossing the country to get power from likely producers in the Midwest and Western states - or from north country wind farms - to the East Coast and other parts of the country.

However, doing that will require years of planning and siting of power lines that will have to be reconciled with local and state permitting regulations, subject to contentious public hearings and strict environmental reviews that could delay or even halt construction.

Schumer: Energy East Is Violating Its Deal With NYS

2009-03-08T08:15:00.000-04:00

U.S. Senator Charles E. Schumer today wrote to the Public Service Commission asking them to reject Energy East's request to raise gas and electric rates on nearly 1.5 million New York ratepayers. In a letter, Schumer outlined a host of reasons for the PSC to dismiss their request, contending that it violated several of the terms established by the PSC in approving Iberdrola's purchase of the utility and also made questionable claims in an attempt to justify the rate increase.

“This rate hike application reeks of profit mongering by a company that promised not to do just this as a condition of the approval of its merger. Just as New Yorkers are struggling to make ends meet, Energy East is trying to pull a fast one on its customers. The PSC should reject this application without any hesitation,” U.S. Senator Charles E. Schumer said.

Iberdrola, a Spanish utility company, recently purchased Energy East, which is the parent company of NYSEG and RG&E, serving over 1.5 million ratepayers, spanning communities across Western NY, the Finger Lakes Region, the Southern Tier and Hudson Valley, the Capital Region and North Country.

During the regulatory approval process, Iberdrola committed to setting aside a $275 million pool of funds -- or Positive Benefits Adjustments (PBA) -- to keep customer rates low. At the time, Schumer said he would only support a deal containing provisions that would keep customer rates low. The final deal stipulated that a rate hike increase could not be requested for 13 months after the merger and that the $275 million Positive Benefits Adjustments be used to reduce rates or offset costs of the merger. Today, Schumer asked the PSC to determine whether the company was planning on using the $275 million in PBAs to offset the proposed rate hike, and if not, to determine how the company intended to use that fund.

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'DEVASTATING' EMPIRE ZONE REFORM STILL BEING CONSIDERED BY STATE LEADERS

2009-03-02T15:37:00.001-05:00

Albany, N.Y., February 25 –State Senator George Winner (R-C-I, Elmira) said today that with just over one month to go until the April 1 deadline to have a new state budget in place, the state’s Democratic leaders are still considering an Empire Zone reform plan that would devastate local economic development and lead to job losses.

“The Empire Zone program is upstate New York’s No. 1 economic development tool, and Governor Paterson wants to take it away from local businesses and manufacturers. I haven’t heard any of the state’s Democratic leaders back away from the plan, and that’s frightening. The governor’s plan is a rejection of the Empire Zone program, not reform,” said Winner. “The last thing we can afford is for a job-killing plan like this one to be approved at the last minute with very little public discussion.”

Governor David Paterson’s proposed 2009-2010 state budget would cut $272 million by taking Empire Zone benefits away from companies currently participating in the program. Under the Paterson plan, businesses previously deemed qualified for Empire Zone benefits would be retested to determine if they meet a new, higher 20:1 benefit-to-cost standard. The proposal would also eliminate the roles of local Empire Zone certification officers and administration boards in the current certification process, with the role of sole certification officer falling to the state economic development commissioner.

Winner said if Paterson's proposal is enacted, most of the businesses and manufacturers in his legislative district currently receiving Empire Zone benefits would no longer qualify.

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Sticker Shock: PSC must do more to protect utility customers

2009-02-27T16:48:00.000-05:00

It's been four months since the state Public Service Commission moved to curb overly aggressive sales practices by so-called energy service companies.

While the measures were badly needed, the commission fell short of fully protecting utility customers. Consumers are still at risk of being suckered into paying exorbitant prices for electricity and natural gas.

The commission needs to go back and enact more safeguards.

At the very least, it should require the companies to provide more transparent information about what they charge. And it should allow customers a reasonable time to review their first bills and cancel service if they want, without paying early termination fees.

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PSC staff to oppose NYSEG hikes

2009-02-26T09:28:00.001-05:00

Staff from the state Public Service Commission will be filing a motion today to dismiss a request for rate hikes by New York State Electric & Gas, officials said.

NYSEG, an Energy East Corp. subsidiary, filed a request on Jan. 27 that would call for an increase in electricity bills of about $8.80 per month, a 9.9 percent increase. It also seeks an increase in residential natural-gas bills of $12.20 per month or 8.8 percent, according to a company media release. A related company, Rochester Electric & Gas, is also seeking a hike.

The requests come about four months after Energy East was acquired by Spanish energy company Iberdrola, which agreed to delay any rate increases during a 13-month period unless safety and reliability were at risk without one.

Company spokesman Matt Maguire said that due to the global recession and credit crisis, the utilities are in a financial crisis.

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N.Y. Power Authority surplus will go to state, not customers

2009-02-09T16:18:00.000-05:00

ALBANY — In the course of a year or so, the state will take more than $750 million from the New York Power Authority to help the Paterson administration balance the state’s deficit-ridden general fund.

Power Authority officials say the lost money will not affect operations and that they are happy to help the state during these troubled times.

But critics say the move comes at a terrible time, given the condition of the economy. The authority, the nation’s largest state-owned power company, could have used some of the money to lower electricity rates, especially for struggling upstate companies that have decried the cost of power in New York as a competition killer, these critics say.

“Essentially, they’re using surplus NYPA funds from selling our hydropower on the open market to fund pork-barrel spending in Albany. It’s outrageous,” said Assemblyman James Hayes, R-Amherst, the ranking Republican on the Assembly Ways and Means Committee. He voted against last week’s deficit-reduction package.

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LOU DOBBS on Industrial Wind Projects

2009-02-06T16:49:00.000-05:00

PILGRIM: There are lots of reasons for our economy and environment to invest in wind and solar energy but wind and solar are capital-intensive industry, not labor intensive. So job creation would be expensive.

According to the Center for American Progress, it would take $50,000 of taxpayer money to create every green job, a government subsidized job in an industry already heavily subsidized. The house stimulus proposal of $18 billion would be ten times the current government funding for renewable energy. The senate plan of $14 billion is seven times higher. And neither plan would spend the money quickly.

REP. DARRELL ISSA (R), CALIFORNIA: Whether you're talking 14 or 18, you only have about 2 that could possibly be properly spent in the first two years. These projects are taking ten-plus years to get off the ground because even those who say they're environmentalists don't want them in their backyard.

PILGRIM: And the Congressional Budge Office says the new funding would not be stimulative. "We therefore expect that the proportion of spending that would occur in the first few years would be lower than for the existing programs, reflecting the time it would take doe to establish new programs." Some say the heavily subsidized renewable energy industry does not deserve even more money.

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PSC, NYSEG at odds over finances

2009-01-26T11:21:00.000-05:00

Another showdown appears to be brewing between the state Department of Public Service and Energy East Corp.

An attorney for the department believes Energy East, parent of New York State Electric & Gas and Rochester Gas and Electric, is doing OK despite the recession and credit crunch.

But officials from NYSEG and RG&E apparently feel otherwise.

According to letters from the department and its general counsel, Peter McGowan, NYSEG and RG&E wanted an unspecified and temporary rate increase at the end of 2008. The utilities also plan to cut their capital spending plans by 50 percent.

In letters from McGowan, obtained by the Democrat and Chronicle newspaper in Rochester through a Freedom of Information Law request, it is clear that the 2008 battle over the $4.6 billion purchase of Energy East by Iberdrola SA of Spain won't be the last.

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NYSEG, RG&E may be eyeing temporary rate hikes, project cuts

2009-01-23T09:30:00.000-05:00

Letters to the New York Department of Public Service indicate that Rochester Gas and Electric Corp. and sister company New York State Electric and Gas Corp. are weighing temporary rate hikes and cuts in capital spending.

That has the department’s general counsel questioning why parent company Energy East Corp. is down in the mouth about its earnings in 2009.

In letters sent to attorney David L. Schwartz, who represents NYSEG and RG&E, the department said a temporary rate hike in the time frame requested was unlikely given New York’s regulatory requirements. The request appears to have been aimed at getting approval by the end of 2008.

“In light of this procedural framework and considering the limited information you provided to us, it seems highly unlikely that the commission would be able to act on a request by NYSEG or RG&E for a temporary rate increase within the end-of-the-year time frame you outlined in our meeting,” wrote Peter McGowan, general counsel for the DPS.

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Paterson’s goal is sure to drive prices even higher

2009-01-18T12:24:00.000-05:00

In his first annual address to legislators last week, Gov. David A. Paterson said, “The state of our state is perilous.” Yet his energy platform promises to visit more peril upon the Empire State.

The centerpiece is Paterson’s “45 by 15” plan for New York “to meet 45 percent of its electricity needs through improved energy efficiency and clean renewable energy” by 2015. The idea is to decrease overall electricity usage 15 percent in six years through efficiency measures.

Meanwhile, policymakers would increase the state’s “renewable portfolio standard” — the amount of the state’s power that would come from renewable energy sources — to 30 percent from the previous target of 25 percent.

Neither is likely to happen, but we are guaranteed to spend a lot of money learning some hard lessons. The state economy is already fairly energy efficient, partly because high prices have driven heavy manufacturing out of state. So the likelihood of finding substantial gains there is slim. The only realistic hope for reducing energy consumption is not efficiency, but a lengthy economic downturn, which nobody wants.

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Iberdrola Plots Asset Sale

2008-12-27T15:45:00.001-05:00

Iberdrola has submitted a divestiture plan to the New York Public Service Commission for approval to sell five assets as part of its EUR6.091 billion ($8.49 billion) acquisition of Energy East.

The company is seeking approval to sell:

* 275 MW coal-fired Russell Station in Greece, N.Y., that permanently ...

Path of power lines revised

2008-12-16T10:00:00.000-05:00

Upstate NY Power Corp. will soon apply for a state certificate for a greatly revised transmission line to connect the proposed Galloo Island Wind Farm to the state grid.

Upstate NY Power ran a public notice in the Watertown Daily Times on Monday, a required step before submitting an application for a certificate of environmental compatibility and public need from the state Public Service Commission. The notice said the application would be filed on or around Dec. 31.

The new map shows a route that, after landfall, runs much closer to Henderson Bay, then runs south and east of Belleville, possibly using a former electric power line right of way. Instead of running to Albion and Parish, the new route goes through the village of Pulaski into the town of Mexico.

The old route generally was farther to the west. In some spots, the new route is well east of the old one.

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$19,000 Electric Car Coming to US in May 2009: Introducing the Wheego Whip

2008-11-24T16:01:00.002-05:00

It looks surprisingly like a Smart Car and frankly has one of the dumbest names I’ve ever come across, but the $19,000 all-electric RTEV (Ruff & Tuff Electric Vehicles) Wheego Whip will be available in the United States in May 2009.

The Wheego Whip can reach a maximum speed of about 70 mph, but until it passes crash tests by the US DoT, expected sometime in 2010, it will be released initially as a Low Speed Vehicle (25 mph maximum speed) or a Medium Speed Vehicle (35 mph max). RTEV says that the Whip can travel 50 miles on single 8-hour charge, from any standard household 110 or 220v outlet.

Iberdrola begins acquisition

2008-11-24T15:52:00.001-05:00

BINGHAMTON -- Energy East has transferred 11 parcels in Broome County to Iberdrola for $24.2 million as part of its acquisition by the Spanish energy company.

Iberdrola's associated transfer tax payment -- $120,889 -- is the largest in recent history, county Clerk Richard R. Blythe said.

"I don't recall one larger," he said. "I mean, you're buying all of NYSEG."

The transfer is part of a larger, $208.8 million transaction including Energy East properties outside of Broome, Blythe said.

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Massa accepts election victory

2008-11-21T16:18:00.001-05:00

Congressman-elect Eric Massa, D-Corning, announced this morning that he accepts victory in the 29th Congressional District election.

“It’s my honor and I stand before you deeply humbled to accept the victory as your next congressman, 29th Congressional District, in the 111th Congress,” Massa told supporters and media packing his campaign office at 79 E. Market St. in Corning. The remark received a round of applause.

His margin of victory was about 5,000 votes, he said.

“I made a commitment during the course of the election that I wanted every ballot counted before I accepted this victory. It’s my understanding every ballot has now been counted and the decision has been made. But I have no illusions. This was a close election, and we obviously have a great deal of work to do. That work is going to center on the problems that we have,” he said.

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DEC Taking Comments On Natural Gas Drilling

2008-11-18T14:28:00.001-05:00

With gas companies rushing to drill in New York, many are pushing for the state government to step in and regulate the industry.

Representatives from the state's Department of Environmental Conservation held this public comment session tonight at Broome Community College.

The DEC wrote a draft of all the possible regulations and problems involved with the gas industry, called a scope.

It's now looking to the public to give them insight on things they may have missed.

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State urged not to stifle gas drilling

2008-11-14T08:02:00.000-05:00

Local politicians urged New York state Thursday night not to impose, in the words of Sen. George H. Winner Jr., R-Elmira, "unreasonable, unfair regulations" on natural gas drilling that could drive away a potential economic stimulus in the Southern Tier.

But several residents at a public hearing expressed concerns about drilling's effect on water tables.

"Many of us rely on individual drinking wells for our water," said Robin De Lill-Stroman of Chemung.

The differing views concerned a draft scope for an environmental impact statement about natural gas drilling in New York.

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First gas-drilling sites around the Southern Tier show promise, problems

2008-11-10T14:39:00.000-05:00

The natural gas industry taking root in Susquehanna County is already meeting expectations for eye-popping economic returns and potential environmental headaches.

Mini nuclear plants to power 20,000 homes

2008-11-09T08:50:00.000-05:00

Nuclear power plants smaller than a garden shed and able to power 20,000 homes will be on sale within five years, say scientists at Los Alamos, the US government laboratory which developed the first atomic bomb.

The miniature reactors will be factory-sealed, contain no weapons-grade material, have no moving parts and will be nearly impossible to steal because they will be encased in concrete and buried underground.

The US government has licensed the technology to Hyperion, a New Mexico-based company which said last week that it has taken its first firm orders and plans to start mass production within five years. 'Our goal is to generate electricity for 10 cents a watt anywhere in the world,' said John Deal, chief executive of Hyperion. 'They will cost approximately $25m [£13m] each. For a community with 10,000 households, that is a very affordable $250 per home.'

Deal claims to have more than 100 firm orders, largely from the oil and electricity industries, but says the company is also targeting developing countries and isolated communities. 'It's leapfrog technology,' he said.

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NYRI is blasted at state hearing

2008-11-07T09:54:00.000-05:00

NORWICH - Residents of Chenango and its surrounding counties took aim at NYRI on Thursday afternoon during a hearing held at the Council of the Arts auditorium in Norwich.

The hearing was held by the state's Public Service Commission.

NYRI, short for New York Regional Interconnection, has proposed a 400,000-volt, 10-story tall direct-current power line that would run from Marcy in Oneida County to New Windsor in Orange County. Various proposed routes could take the line through sections of Delaware, Chenango and Otsego counties.

Opponents, like Dr. Glenn Stein of Norwich, see the project purely as a scheme to enrich investors. Stein, who testified Thursday, told two administrative law judges, ``The only thing green about NYRI is the money they're going to make.''

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UDC opposes NYRI power line

2008-11-07T09:52:00.000-05:00

HANCOCK – The Upper Delaware Council, Inc. delivered testimony at a public hearing convened by the New York State Department of Public Service in Hancock to gather input on the application by New York Regional Interconnect, Inc. (NYRI) to construct a high voltage direct current transmission line on a 190-mile path between Marcy and Rock Tavern, NY.

The New York State Public Service Commission (PSC) will determine by August of 2009 whether to grant NYRI a Certificate of Environmental Compatibility and Public Need for its proposed $2.1 billion power line.

The two Administrative Law Judges assigned to the case, Jeffrey Stockholm and Michelle Phillips, agreed to hold 13 public information forums between October 20 and November 6 in the seven New York State counties affected by the proposed route to personally hear statements and create a record for their review.

The UDC was represented at three of the hearings which took place on Oct. 29 at the Delaware Community Center in Callicoon and Sullivan West Central High School in Lake Huntington, and on Nov. 5 at Hancock Central School in Hancock.

“Page 134 of the River Management Plan states that new, major electric lines with a design capacity of 125 kilovolts or greater and extending a distance of ten miles or more in length are an ‘incompatible use’ anywhere in the river corridor”, testified UDC Executive Director Bill Douglass.

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