Assembly Democrats: New Yorkers overpay for power

Are New Yorkers paying 10 percent higher electric bills as victims of a legal scheme to boost electric company profits? Or is the state's complex price-setting system really creating an incentive for cleaner, low-cost power?

Assembly Democrats say New Yorkers overpay $2.2 billion a year for electricity. They say the system sets prices at the highest level and claim collusion is part of the process.

The head of an industry trade group, however, said the claims are wrong. Gavin Donohue of Independent Power Producers of New York says the system encourages cleaner generators of electricity such as wind or hydro power, which can profit from higher prices. Less efficient, greater polluting and older coal plants would profit less or not at all under the system, he said.

"What you have here is price fixing — secret, elegant price fixing," said Assemblyman Richard Brodsky, a Westchester Democrat whose committee is examining the system under decade-long de-regulation of the energy industry in New York. "Even if there wasn't collusion, the system is nutty... it probably means that with a stroke of the pen, you could reduce everyone's bill by 10 percent."

Assembly Democrats have long opposed deregulation of the industry begun under the Republican administration of Gov. George Pataki.

Donohue said New York's energy market is evolving and is already providing a trend of lower prices, when adjusted for inflation. He called the Assembly proposals to re-regulate or drastically change the system "unwarranted extreme measures."

Donohue acknowledges higher prices for electricity are set under the current system, but said there is no collusion to profit from higher prices.

"It's totally inappropriate for an elected official to say that, given he has no evidence," said Donohue, who had worked in the Pataki administration. "We have a remarkably different story to tell."

Related News

Bruce Power cranking out more electricity after upgrade

OWEN SOUND - Bruce Power’s Unit 3 nuclear reactor will squeeze out an extra 22 megawatts of electricity, thanks to upgrades during its recent planned outage.

Similar gains are anticipated at its three sister reactors at Bruce A generating station, which presents the opportunity for the biggest gains, due to a design difference over Bruce B’s four reactors, Bruce Power spokesman John Peevers said.

Bruce A reactor efficiency gains stem mainly from the fact Bruce A’s non-nuclear side, including turbines and the generator, was sized at 88 per cent of the nuclear capacity, Peevers said.

This allowed 12 per cent of the energy,…

READ MORE
hydro quebec meters

Class-action lawsuit: Hydro-Québec overcharged customers up to $1.2B

READ MORE

Trump declares end to 'war on coal,'

Trump declares end to 'war on coal,' but utilities aren't listening

READ MORE

bc hydro

BC announces grid development, job creation

READ MORE

Site C Dam

OPINION | Bridging the electricity gap between Alberta and B.C. makes perfect climate sense

READ MORE