Democrats to pound another nail into Upstate's coffin

Next time you hear double-dipper Bob Duffy gassing about creating jobs in Upstate New York, ask him how this helps.

State lawmakers are in talks over a plan to lower New York's cap on carbon emissions, a move that would likely boost costs for coal-fired power plants and revamp the state's participation in a regional climate-change program.

Under pressure from environmental groups, lawmakers and Gov. Andrew Cuomo's office have discussed lowering the limit through the Regional Greenhouse Gas Initiative, a nine-state cap-and-trade program in which carbon allowances are auctioned off to power producers.

Let's think about this for a moment.  If you're a struggling Finger Lakes homeowner, your second-highest-in-the-US electric rate will go up again.  If you're a swell who's invested in carbon credits, however, your net worth will increase.

"One of the most serious things that has been looked at this year is adjusting the cap, and by adjusting the cap the credits themselves will regain value," said Assemblyman Kevin Cahill, a Kingston Democrat who chairs the chamber's energy committee.

And if you happen to still have a job in a coal fired power plant, don't worry.  

The legislation would likely have a significant impact on the state's coal plants, particularly financially troubled facilities in Lansing, Tompkins County, and three others in western New York.

You and your fellow taxpayers will be forced to hand over more cash to your local government, which by the tortured logic of the state legislature, will make it all better.

Current discussions, however, center around providing state aid to municipalities should a power plant close, according to the bill language. Forty percent of the additional revenue from the emissions auctions would be earmarked for communities that are "substantially adversely impacted by the loss of property tax revenues" or a payment in lieu of taxes agreement "due to the closing of a major electric generating facility."

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.

AES power plants in bankruptcy

AES Cayuga

AES Corp., owner of the recently re-started Finger Lakes power plant formerly know as Milliken Station, has filed for bankruptcy.  The company blames the ongoing economic depression.

AES Corp. (AES) units that either own or lease six coal-fired power plants in New York state sought bankruptcy court protection, citing the depressed economic environment for the electric power industry.

AES Eastern Energy LP and 13 other AES affiliates listed as much as $1 billion in debt in Chapter 11 filings yesterday in U.S. Bankruptcy Court in Delaware. AES Eastern listed $100 million to $500 million in assets.

The units want to sell or transfer their only two plants in active operation, in Cayuga and Somerset, as part of a settlement with certificate holders, Peter Norgeot, president of AES NY, said in a court filing.

As we reported in May, financial problems at AES Cayuga are causing headaches for taxpayers in the Lansing school district.  Most Finger Lakes residents understand the Obama recession's impact on AES' power sales, but how many of us have ever heard of the Regional Greenhouse Gas Initiative?  The RGGI boils down to a massive New York state tax on coal-fired electric generation, resulting in higher rates for already strapped consumers.  In addition, the tax may be forcing CNY electric utilities to switch to less expensive Canadian hydro power, further damaging the local plants' revenues.

For the past three years, New York has participated in the RGGI Cap & Trade scheme without the authorization of the state Legislature! Already this Cap & Trade energy tax has cost New York businesses and ratepayers a staggering $327 MILLION! Not only are we seeing an increase in our energy bills because of this mandatory cost increase to production being passed on to consumers, but this tax is also hitting us in other areas such as food, goods, and services.

Bold added.  We encourage our Finger Lakes neighbors to attend the upcoming AFP presentation in Ithaca, referenced in the One of Nine post linked above. 

Taxation Without Representation: The Regional Greenhouse Gas Initiative in NYS

A presentation by Lisa Thrun, Grassroots Chair,

The New York Chapter of Americans for Prosperity

Tuesday, Jan. 17, 2012 at 6:30 pm

Tompkins County Public Library - Borg Warner Room

101 E. Green St., Ithaca NY