No Corporate Welfare
New York's 2012 Power Trend Report says there is a surplus of energy in New York.
The PSC says the repowered plant would operate only 500 hours per year.
Why would the State authorize a $500 million project to operate 21 days per year?
The PSC says the repowered plant would operate only 500 hours per year.
Why would the State authorize a $500 million project to operate 21 days per year?
The New York Independent System Operators 2012 Power Trend Report says there is a surplus of power in New York State. Even on peak summer days, there is more than adequate supply. Indeed, last year, the State had the capacity to generate 5000 megawatts more than what was needed on our most demanding summer day. The report says that what is needed is a better transmission system to direct the power where it is needed.
According to information from the PSC's recent Public Hearing in Lansing, the Cayuga Operating Plant, if converted to burn "natural" gas, would be used to meet peak demands of up to 300 megawatts of power. Cayuga Power Plant's 300 MW makes up a mere 6% of the State's surplus capacity and less than 1% of the overall power production capacity in the State. What's more, peak demands occur for only a few hours during our increasingly hot summer days and again during the few very cold winter ones. The plant would operate for 500 hours per year over the next 10 years. Put another way, if the State's Public Service Commission approves the coal-to-gas conversion, NYSEG and National Grid customers will end up paying half a billion dollars to convert a power plant that is needed for only 21 days per year, when all that is really needed is a transmission upgrade. This absurd proposal begins to make sense when one learns some history. Since 2007, the Cayuga Operating Plant, LLC, (formerly AES Cayuga) has been struggling financially, and in 2011 they declared bankruptcy. They emerged from bankruptcy as Cayuga Operating Plant, LLC - a privately held corporation, whose bondholders include J.P. Morgan. J.P. Morgan, the New York Times recently reported, "just struck a $410 million settlement with the nation’s top energy regulator, which had accused the bank of devising “manipulative schemes” to transform “money-losing power plants into powerful profit centers.” Use the webform to the right to tell the Public Service Commission and Governor Cuomo that you favor the NYSEG plan to upgrade the transmission lines and that you oppose corporate welfare. NOTE: we've been told that the financial impact on rate-payers is the factor that is most influential with the Public Service Commission. You can say other things too - but please be sure to talk about the expense of the conversion and the cost to you, the NYSEG or National Grid customer. |
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