Showing posts with label New York Public Service Commission. Show all posts
Showing posts with label New York Public Service Commission. Show all posts

Wednesday, June 10, 2009

The three-ring circus in Albany

If so many important things — things like the state’s economic security and the civil rights of its gay residents — weren’t hanging in the balance, what’s going on in Albany right now would almost be funny. The upstate shenanigans are certainly entertaining, in spite of the stuff that’s not getting done.

The coup that took place in the State Senate on Monday afternoon was fun to watch. (Props to the Albany Times-Union for posting on its blog raw video of what went down.) The Democrats were completely blind-sided by the power play, made possible by the defection of two Democratic turncoats. The Democratic leadership obviously couldn’t believe their ears and eyes. They resisted calling a vote on the motion to replace Majority Leader Malcolm Smith as the Senate’s president pro tem. Then, after the vote was finally called, with every Republican and the two Democratic defectors voting to oust Mr. Smith, the Dems refused to announce the result of the vote. Then, as Mr. Smith later put it, they “gaveled out” the meeting, meaning they adjourned it — or at least attempted to. The motion to adjourn, though made and seconded, was never voted upon. After banging the gavel, Mr. Smith, with 29 Democrats filing out behind him, marched out of the Senate chamber, killing the mics and the lights as they left.

You can’t make this stuff up.

The Democrats are trying to figure out what to do to salvage their short-lived leadership in the Senate, which had been held in the iron-fisted grip of a solid Republican majority for 40 years. The Dems lasted just five months, thanks to the defection of two of their least stellar members.

And while Republicans try to spin this coup as a bipartisan reform effort, it pays to be mindful of the characters with whom they’ve cast their lot. Democrats Pedro Espada of the Bronx (sort of — he might actually live in Westchester, outside of the district he represents, a teensy-weensy legal problem) and Hiram Monserrate of Queens are the party’s weakest links in the Senate. One’s under indictment, the other’s under investigation. They’re not exactly good-government reformers. But then again, good-government reform is not something that springs to mind when one thinks about Senate Republicans.

Except our own senator, Ken LaValle, of course. When I caught up with him Tuesday morning, he was not only delighted with Monday’s coup (especially how he and his colleagues kept it under wraps for weeks, “with members not telling their staffs, or even their wives”) but he was gleeful about the reforms enacted by the 32 senators who remained in the chamber after Malcolm Smith packed up his toys and stomped off the playground in a huff. They include: banning the majority leader from serving as president pro tem; imposing a six-year term limit on the president pro tem; and equalizing the distribution of resources among Senate members, regardless of party affiliation. After 40 years of choking out Senate Democrats, the Republican members got a taste of their own medicine these past five months, and they didn’t like it.

Mr. LaValle said the “thing that’s been gnawing at” him was the way the budget got done this year, and how badly Long Island got hurt. The last straw, he said, was the MTA bailout payroll tax, especially how school districts were not exempted from it. “It was just crushing,” he said.

It remains to be seen whether this “coalition government,” as Mr. LaValle called it, will get anything accomplished during the remainder of this year’s legislative session. Mr. LaValle is hoping to reinstate the STAR rebate program before the recess. And who knows what will become of the gay marriage bill (which, ironically, Mr. Espada sponsored but which Republicans, including Mr. LaValle, generally do not support).

It remains to be seen whether the Senate can even meet. The keys to the Senate chamber are in the hands of the senate secretary, a Smith appointee named Angelo Aponte, and he’s refusing to unlock the chamber doors — figuring, I guess, if he locks the insurgents out, they can’t convene. Never mind that the state constitution requires the doors to be kept open “except when the public welfare shall require secrecy.”

I know Angelo Aponte and he’s not a stickler for details — such as what the state constitution might say. He’s actually the reason I left NYC almost 25 years ago. He was my boss at the NYC Department of Consumer Affairs, where I was a staff attorney in the general counsel’s office. His idea of legal counsel’s role was to provide legal justification — cover, as it were — for whatever he -— the commissioner — wanted to do. He would scream at us to find him a “hook” to hang his hat on. Somewhere in Albany this week, he was no doubt yelling at some young lawyer to provide the rationale for keeping those doors locked. I can almost hear his voice bellowing out, “Find me a hook! Find me a hook!”

I remember precisely the moment I decided it was time for me to move on. It was in the basement of the old building at 80 Lafayette Street in lower Manhattan, where, ignoring my admonition that he had no legal right to do what he was doing, the commissioner of consumer affairs took a crowbar to the video game machines we were storing, pending administrative hearings. The machines had been confiscated by our enforcement agents for unlicensed operation, and Aponte had decided our agency was entitled to the coins locked inside them. I couldn’t find him his hook. I didn’t even try. He had no patience for my lecture about constitutional due process rights. He had his crowbar. I returned to my office before the first machine was cracked open and drafted my resignation.

Yep, characters all around. And so, the three-ring circus that is New York’s excuse for a state legislature continues to entertain. The Democrats claim that everything the Republicans did after Smith “gaveled out” and they walked on Monday doesn’t count because the session was adjourned. The Republicans argue (and they have the rules of parliamentary procedure on their side) that the meeting was not adjourned because there was no vote on the motion to adjourn. They want to reconvene, but they may have to find someplace else to do it, because they’ll probably need a crowbar of their own to get the chamber keys out of Aponte’s hands.

Where this all leads remains to be seen. But one thing’s a pretty safe bet: Good government and the interests of the people of the state will not prevail.


Copyright 2009 Times/Review Newspapers Corp.

Thursday, November 15, 2007

LIPA's smoke and mirrors

Are you outraged by your electric bill? I know I am.

My bill is effectively doubled by LIPA's "power supply charges" — which the utility used to call "fuel surcharges" before it decided on the new euphemism.

Our cost-per-kilowatt-hour is just about doubled by LIPA's power supply charges. No matter what LIPA calls it, it's a RATE INCREASE, plain and simple. Yet this rate increase has been imposed by LIPA without review and approval by the (so-called) Public Service Commission.

Newsday business reporter Mark Harrington has an excellent article in today's edition: LIPA overestimates cost of fuel, overcharges customers.

In 2006, LIPA over-collected these bogus fuel surcharges by $197 MILLION.

LIPA has been refunding the 2006 excess revenue in 2007. But at the same time, LIPA is continuing to over-collect fuel surcharges to the tune of another $118 MILLION as of September.

LIPA is intentionally collecting more in fuel surcharges than it needs as a hedge against the "volatile" energy market. The result is the near doubling of its "cash, cash equivalents and investments" at the end of its operating year, from $413 million at the end of 2004 to $710 million at the end of 2006.

And last year, Harrington reports, LIPA "voted itself the right to overcollect more than three times the amount it previously could to hold in reserve."

LIPA operates without sufficient oversight. With a complicit PSC, it raises our de facto rates, changes its tariff to increase allowable "reserves" and manages a huge slush fund collected from us ratepayers -- who are struggling to pay our electric bills. Even as LIPA is jacking up our rates and padding its bank accounts to protect us against "volatility" it is shutting off customers who can't afford to pay their LIPA bills. "At last count," Harrington writes, "217,105 residential and commercial customers -- roughly one in five -- were late making payments, and LIPA's practice of shutting off electricity for non-payers spiked last year."

Why do we sit back silently and allow this to continue? This is our money. LIPA rates are effectively a tax. There are few realistic options for most of us but to buy electricity from this monopoly. The PSC was created to regulate utility monopolies and protect the public from abuse. It isn't doing its job. What will it take to get people to stand up and say, "ENOUGH! We demand change!" We have a governor who prides himself on being a crusader for consumer rights. When will we see that brought to bear on the PSC and LIPA? LIPA ratepayers are being shafted. And LIPA is allowed to do whatever it wants with our money with very little oversight. Meanwhile, we just keep footing the bill without a peep.

Friday, November 09, 2007

Hold on to your wallets

Times/Review Newspapers Editorial

November 8, 2007

Think your utility bills are killing you now? Well, get ready to dig even deeper into your pockets this winter, if the state Public Service Commission staff has its way.

The PSC staff is recommending that National Grid, which bought out KeySpan in August, be allowed to recover from ratepayers 100 percent of the cost of cleaning up the 83 contaminated manufactured gas production sites it got from KeySpan. Estimated price tag for the cleanup: over $1 billion. (See Times/Review story by North Shore Sun reporter Anna Gustafson, "Rate payers to foot the bill?") This could raise our utility rates — including the already sky-high cost of electricity — as much as 30 percent, according to local lawmakers. Even if you're not a primary natural gas customer, you're still going to pay. LIPA buys natural gas from National Grid to generate the electricity it sells you. LIPA passes its fuel cost increases directly to ratepayers by way of fuel surcharges, recently renamed "power supply charges," that have effectively doubled your electric costs by adding almost 10 cents per kilowatt to your bill — on top of per-kilowatt-hour charges that are already among the highest in the nation.

Legislators, including First District Assemblyman Marc Alessi, warned us this might happen when the National Grid deal was before the PSC for approval this summer. They implored the PSC to address the cleanup costs in the buyout agreement. Once again, the PSC proved itself more interested in preserving the utilities' profitability than in protecting ratepayers. It ignored the legislators' demands and approved a buyout agreement that was mum on the MPG remediation cost. The ink was barely dry on the deal when National Grid asked PSC for permission to pass the remediation cost on to us, and PSC now appears poised to give the giant utility exactly what it wants.

We urge the commissioners to put the public interest before special interests for a change. Don't make ratepayers pay for the utility's neglect or malfeasance. With crude oil prices hitting $100 a barrel this winter, driving heating and electric costs even higher, Long Island ratepayers simply can't bear this additional spike in utility charges, especially in an economic climate of grave uncertainty. The reverberation effect of this increase could shatter the local economy.

With history as our guide, it's clear the remediation cost pass-through is probably as good as done. National Grid, whose lobbyist is the former chairman of the PSC, has more sway with the commission than does the public whose interest it's supposed to serve. No surprise there. The real question is whether our state Legislature has the independence (from the utility/energy lobbies) and principle to enact meaningful legislative reform, putting the public interest in the forefront of utility regulation, where it belongs. Time will tell. Meanwhile, turn off the lights, bundle up and open your wallet. It's going to be a long, cold, costly winter.

Copyright 2007 Times/Review Newspapers Corp.