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By Ryan Zunner
WBFO
The New York Power Authority’s proposed rate hike has been shelved by Governor Kathy Hochul.
NYPA had been pushing to more than double its rates for public and private sector customers utilizing a low-cost “preference power” hydro program.
They said it was to help fund upgrades and maintenance of state power facilities, but those critical of the proposal, like State Senator and Minority Leader Rob Ortt, say it would have had negative impacts on business, manufacturing, and even some rural residents.
"The low cost hydropower was sort of the thing that like, 'hey, that's why we can stay, here we can be competitive," Ortt said of what he's heard from WNY business owners. "To then almost triple it in four years would have been absolutely again, just ridiculous. Completely divorced from economic reality and the reason the program existed to begin with."
Preference power from facilities like Lewiston's Robert Moses Hydroelectric Power Station is given at low-cost to businesses and public agencies who apply, as well as to dozens of local municipal power agencies.
A spokesperson for National Grid said the proposed rate hike would not have affected their customers, as this was separate from the utility companies under the Public Services Commission. When NYPA wants to raise its rates though, it doesn't have to go to the commission.
"NYPA by its design, and you'd have to go back a long time, leaves a lot to be desired I think from a transparency process," Ortt said about the authority's unique status among energy providers.
The rate would have went from $12.88 per megawatt hour to $33.05 per megawatt hour.
Leaders in the local manufacturing world are also praising Governor Hochul's decision to step in. They say the low-cost program helps keeps jobs in New York State.
"NYPA has historically provided cost competitive, reliable and clean power that has helped keep manufacturers in New York State. As manufacturers operating in a high cost, high tax, high regulatory State, affordable and reliable NYPA power has helped manufacturers compete domestically and globally while retaining and growing jobs," Buffalo Niagara Manufacturers Alliance & Manufacturers Association of the Southern Tier said in a joint statement. "We also thank those leaders from the manufacturing sector, and our Western New York delegation of elected leaders that have conveyed their concerns directly to NYPA, to their peers and to the Governor.”
Among the public agencies that utilize NYPA power include the NFTA. They said their five-year impact would have risen their operating costs for electricity up to $294,500, it's currently $66,512.
"We are extremely appreciative of Governor Hochul for her concern and quick actions," said NFTA executive director Kim Minkel. "This measure is a win for our entire community and will keep costs as low as possible."
As far as upgrade work New York Power Authority's administrators say was behind the need for upping rates, Senator Ortt said he believes that money can be pulled in from the money the entity already generates.
"Over the years the state has swept money from the Power Authority, from their proceeds. They've swept money into the general fund," Ortt said. "Use that money instead, use it to make those upgrades at really your cash cow, your golden goose, the Niagara Power Project. NYPA should be happy to plow their own money, or the state should be able to plow money back into that facility, because that's the facility that makes the absolute wide share of your revenues."
Governor Hochul in announcing her call to shelve proposed rate hikes, told the power authority to "go back to the drawing board" and to "figure out a better way forward.”
