NYPA SET TO STEAL 50 YEARS MORE

By Frank Parlato Jr.

We’re incredible:

Think about it: The New York Power Authority’s (NYPA) license to control Niagara’s hydro-electricity is about to expire. Our greatest asset - hydro-electricity – about to be stolen - again-- and we sit utterly mute.

If, in case, you dare to speak, here are some facts you ought to know:

NYPA was created by the NY Legislature in 1931 to provide (don’t laugh) "low-cost electricity for the people of NY." A "public benefit" corporation, whose board of directors is appointed by Albany, NYPA operates the Niagara Power Plant and sells the power to private utilities, government and neighboring states. Ironically, although the Niagara generates more than $1 billion (true worth) of electricity per year, NYPA sells none of it to local residents.

Consider how harmful this is: a region should benefit by its natural assets, as it has to compensate for natural disadvantages. For example: Florida has warm weather/ low heat bills. It has no rushing river. Its residents pay for high-priced, inefficient (oil, coal and steam generated) electricity. Our region has cold weather/ high heat bills. But, we pay more for electricity! According to Electric Power Monthly, Floridians pay 11.25 cents p/ kw hour, while NY pays 16.72 cents.

Floridians benefit by their natural asset: Sunshine. WNY’s do not benefit by their asset: raging river-power.

To set the record straight, NYPA doesn’t make a billion a year from the Niagara, because it sells power at low- cost to NYC and eight other states. Still, NYPA derives an enormous income from our river. That money goes to sustain 1000’s of high-paid Albany-patronage jobs; "outside studies," and purchase of soon-to-be-obsolete equipment, at high mark-up—awarded to overstocked companies owned by some of Albany’s most generous donors.

NYPA has hurt us immensely: We rose to prosperity on hydro-power. It attracted industry, which all but left since NYPA (and the end of low-cost power) became a fact of life - in the place where low-cost electricity was introduced to the world.

Indeed, until 1957, Niagara hydro-power was controlled locally. Niagara Falls was "The Power City." In 1956, Compton’s Encyclopedia wrote: "Water power helped build the city of Niagara Falls. The falling of water provides a great and constant source of power for hydro-electric plants which supply the city and surrounding area with abundant and cheap electrical power."

Following a (1957) rockslide collapse of a local power plant, NYPA Chairman, Robert Moses, beating the "alarum" drum, told us that NYPA, acting as "steward" of Niagara’s hydro-power, would be the only way to ensure continued prosperity in our region. A 50 year license (until 2007) was granted to NYPA, with the consent of the people and their elected leaders.

With no direct accountability to the people, NYPA, over five decades, accommodated the ten-thousand back-door, sweet- heart deals -- at the behest of successive politicians. In the end, we lost all benefit of having hydro-power in our midst. Today, Niagara residents don’t get their power from the river, but from burning coal and other inefficient methods, purchased at high mark-up from National Grid, a company owned by investors from England. Consider how galling this is: We buy expensive electricity from British investors, and NYPA takes our low-cost hydro-power, which would create thousands of local jobs, and sells it elsewhere. Meanwhile, the profit from our local power pays for thousands of patronage jobs in Albany and White Plains, a suburb of NYC.

After 50 years of "stewardship," only two places in the USA pay more for electricity than Niagara: Massachusetts and Hawaii. According to Electric Power Monthly, 36% of the nation pays less than half what we pay for electricity. This is a striking fact, since our region may be the largest producer of low-cost electricity in the world.

Of course, it wouldn’t be fair to say NYPA does nothing for our community: 120 businesses receive "allocations" of "low-cost" Niagara power. But what about the other 10,000 businesses? How about the one million people living in the region? There’s enough electricity to give everyone within 30 miles of the river low-cost (or free) electricity.

If we grant NYPA a 50 year renewal, NYPA will give Niagara a pittance: $5 million per year for 50 years -- to be split among seven municipalities/school districts (and not adjusted for inflation.) Compared to the multi -billion dollar value of Niagara –power, five million is five cents.

I imagine, the editors of the Guinness Book of World Records are keenly watching: under the Section of "Stupidest Laziest People in History," we may soon find listed: the only people in the history of the world who could lose their original, wealth-producing, and world-wide essential asset/commodity- and when given the chance to get it back - by merely speaking up –(NYPA will not be renewed if the voice of the people was strongly against it) – those imbecilic sluggards (i.e.WNY’ers) said nothing.

But, alas, they won’t be silent long: you’ll hear them grousing in every coffee shop and tavern in WNY complaining about how lousy and broke and unlucky everything is in WNY. And blame city hall or the politicians. But not themselves.

Incredible!

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As published in

December 21, 2006