Nozzolio: force NY taxpayers to subsidize Virginia millionaire

AES Cayuga

The combination of an anemic Upstate economy, fanatic environmental regulations, and the abundance of cheap, clean natural gas being produced in neighboring states has resulted in hard times for the AES coal powered generator on Cayuga Lake.  In fact, AES had made the difficult business decision to enter bankruptcy, and has shut down operations at its AES Cayuga plant.  The facility's landmark steam plume has disappeared from Cayuga's shoreline, except for for brief periods this winter when the plant, which has no heating system, had to be operated to prevent freezing. 

As we've previously reported,  financial difficulties at AES have sent shock waves through local governments in the Town of Lansing, Tompkins County, and the Lansing Central School, all of whom have feasted on the millions in property tax revenues paid every year by AES.  An economist might point out that all those millions actually came from Finger Lakes residents, who pay the highest electric rates in the continental US.

Tax addicted local governments, terrified that they might loose some of their historic ability to coerce gold plated pay and benefit packages from struggling peasants, however, can rest easy this morning.  "Republican" State Senator Mike Nozzolio has decided to use the power of government to force taxpayers to buy AES' otherwise unsaleable product.

This proposed legislation, titled S.6842, recommends the establishment of a power purchase agreement with the New York State Power Authority. The legislation would ensure that the AES Cayuga plant reopens and remains operational for a minimum of three years.

Power produced under Nozzolio's little experiment in serfdom will be doled out, not to Finger Lakes homeowners, but to politically connected fats cats.

Under the legislation, energy purchased from the AES Cayuga plant would be directed to supplement the state's ReCharge NY program. The ReCharge NY program allocates low-cost power to New York State employers.

Harker

And while local taxing entities are thrilled that their cash cow will be spared, let's not forget Victoria D. Harker, CEO of AES and the real beneficiary of Nozzolio's generosity with your money.   Despite the recent problems with her coal burning operation, and unlike many of her Upstate ratepayers, Vicki will still be able to afford dinners out.  Forbes reports Ms. Harker's total compensation from AES in 2010 was $2,661,548.00, with an additional $142,578.00 provided in director's fees from Darden Restaurants.



Updates:  

The well compensated Ms. Harken's actual title is "Chief Financial Officer and President of Global Business Services."   Vicki is reported to be planning to be out the door this summer.

For the truth about New York' s feudal "ReCharge NY" program, see One of Nine.