HomeFrankParlato.comContact

Soon to be a century without local hydro-power

Power projects local benefits are many

Will NYPA creep away with another 50 years?

Stupid is our name

Separating NYPA fact from fiction

Some call it Insane: Renewing NYPA for another 50 years?

A Tale of Two Cities: Drive Niagara Falls fast to its tomb. This, from Albany

If you want cheap electricity, condemn NYPA!

As area leaders are being bought off for pittances...

Developer vows court fight to halt Power Authority Relicensing Deal

 

Frank Parlato Jr.

With many of the local politicians bought off by the tinsel "bribes" of the Power Authority, the people of this community will have to rise up and raise their voices. It's now or never to speak out against the monstrous plan of giving Albany total control of our local hydro-power. Read the articles below and become informed about the issue and the magnitude of the injustice that NYPA and Albany wish to persuade us is practical and fair.

 

Frank Parlato has been practically the sole voice against the unconscionable proposed NYPA re-licensing. Here are the articles he has published in the Niagara Gazette, PoliticsNY.net and Niagara Falls Reporter to try to rouse the public to stop the wholesale theft of our local asset.

 

NY state government (center) flanked by model taxpayers NY state government (center) flanked by model taxpayers NY state government (center) flanked by model taxpayers

NY state government (center) flanked by model taxpayers

 

 

Soon to be a century without local hydro-power

By Frank Parlato Jr.

January 3, 2007

We’re incredible.

Think about it: The New York Power Authority’s 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 state Legislature in 1931 to provide (don’t laugh) “low-cost electricity for the people of New York.” 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.

 


ALBANY'S VIEW: A thoughtful Albany official (shown at right) contemplates the intelligence, perspicacity and overall characteristics of a resident of Niagara Falls, NY (shown at left)


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 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 per kilowatt/hour, while Western New Yorkers pay 16.72 cents.

Floridians benefit by their natural asset: sunshine. Western New Yorkers 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 New York City and eight other states. Still, NYPA derives an enormous income from our river. That money goes to sustain 1,000s of high-paid Albany-patronage jobs; “outside studies,” and purchase of equipment.

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 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, 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 percent 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, $5 million is 5 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 Western New York 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 said nothing.

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

Incredible!

Frank Parlato Jr. is a Niagara Falls businessman.

Back to Top

 

 

OPPOSING VIEW BY NYPA PRESIDENT

(Below is a rebuttal to Frank Parlato's article "Soon to be a century without local hydro-power" by NYPA President Timothy Carey)

GUEST VIEW: Power projects local benefits are many

By Timothy S. Carey
Niagara Gazette

Gov. Eliot Spitzer, in his recent State of the State Address, made note of the significant contributions of the Niagara Power Project among the major infrastructure investments that “became the foundation for the economy that defined New York as the Empire State.” 

“In order to revitalize our economy, we must get back to our roots and stake out a bold vision for infrastructure investment. Past investments in the Erie Canal, the Thruway and the Niagara and St. Lawrence power projects became the foundation for the economy that defined New York as the Empire State” the governor said. 

It is very encouraging to see the fundamental importance of New York Power Authority (NYPA) hydropower projects prominently noted by New York’s new governor. It’s a shame that the negative perspective of the Gazette’s guest columnist, Frank Parlato, prevents him from seeing those benefits as well. Even more troubling than his pessimistic portrayal of the Niagara Project’s contributions to the economy are his utterly inaccurate assertions about the project’s benefits for Western New York. 

Contrary to his claim that Western New York does not benefit from the Niagara Project, state law reserves significant portions of Niagara hydropower for use by industry in Western New York. Of the 62,000 manufacturing jobs in Western New York, some 44,000 are linked to power supplied by the Niagara project. That’s right; more than 70 percent of the region’s manufacturing jobs benefit from low-cost Niagara hydropower. In addition to the power supplied to local industry, Niagara hydropower also provides savings to residential electricity customers of National Grid and New York State Electric & Gas in Western New York. 

Parlato ignores the fact that the federal license for the Niagara Project has very little to say about who may be supplied with hydropower generated by the project. The distribution of Niagara Project hydropower is governed by federal and state law. Half of all the power generated by the Niagara Power Project is required by federal law to be supplied to municipal electric and rural electric cooperatives in New York and neighboring states. (Seventeen Western New York communities are among local public power systems served by Niagara power under this requirement of federal law.) 

As noted earlier, state law reserves a substantial share of hydropower from the Niagara Project for Western New York industry. However, state law also requires that the project “shall be considered primarily as for the benefit of the people of the state as a whole.” 

While federal and state laws require that NYPA serve statewide responsibilities, we do provide an extensive array of benefits to Western New York including: 

n Completion of a $2.3 million renovation of the Power Vista, the Niagara project’s admission-free visitors center, a major Western New York tourist attraction.

n Providing $7 million annually to support the operation and maintenance costs of Artpark and the Niagara Reservation state parks.

n Establishment and ongoing sponsorship of the Historic Lewiston Jazz Festival, which had had total attendance of more than 30,000 and an economic impact in excess of $800,000 over the three-day period of the annual festival.

n Contributions of $5 million to help pay for the renovation of the Niagara Falls observation tower and of $1.5 million for educational exhibits at the Gorge Discovery Center;

n Contribution of $7 million for improvements to Niagara Falls city-owned recreation facilities, including rebuilding Sal Maglie Stadium, upgrading the ice rinks and providing sports fields adjacent to the new Niagara Falls High School.

n Extensive energy efficiency and clean energy technology projects in the region such as removal of coal-burning furnaces from schools in Buffalo, installing energy-efficient refrigerators in more than 1,600 public housing apartments in Buffalo and high-efficiency microturbines at the Town of Lewiston Wastewater Treatment Plant. In total, NYPA has invested nearly $50 million in energy-saving projects at 137 schools and other public facilities in Erie and Niagara counties.

n Assisting the Niagara River Greenway (As part of the Niagara Project relicensing agreement, NYPA has included $7 million annually for 50 years for the Greenway.). 

The settlement agreements achieved in support of the relicensing of the Niagara

Power Project contain a wide array of additional community support measures, including more power for local communities. It is unfortunate that Mr. Parlato continues to ignore the fundamental facts about the laws governing the project’s resources, the relicensing process and the extensive benefits that NYPA provides to Western New York.

Timothy S. Carey is the president and Chief Executive Officer of the New York Power Authority.

Back to Top

 

 

Will NYPA creep away with another 50 years?

18 nauseating facts about NYPA, Niagara and you

By Frank Parlato Jr.

November 22, 2006

The time is approaching when the New York Power Authority (NYPA) will either get their license renewed, or be exposed as the phony-fakers they are. Before you decide whether to speak or (for the next half-century) hold your peace, here are some facts you ought to know:

1.    The New York State Legislature created NYPA in 1931 to provide (don’t laugh) “low-cost electricity for the people of NY.”

2.    A “not for profit” corporation, whose board of directors are appointed by Albany, NYPA operates 18 generating facilities, the most lucrative being the Niagara Power Plant. NYPA sells its power to private utilities, government, and neighboring states. In a crazy twist of fate, NYPA sells none of Niagara-generated power to Niagara area residents.

3.    The Niagara River generates more than $1 billion (true worth) of electricity per year.  NYPA doesn’t make that sum because it sells power cheaply to NYC and eight other states.

4.    Still, NYPA makes an enormous income: Being a “public benefit” corp., NYPA’s excess must be disbursed: (choose three) A: High salaries for executives (15 execs make more than the Governor). B: The creation of more Albany-patronage (199 jobs at more than $100,000). C: Useless studies and needless purchases of wasted supplies and soon-to-be-obsolete equipment, at high mark-up—awarded to companies owned by some of Albany’s most generous political donors ($100 million
in “studies” in recent years). D: Given back to the people in the form of lower electric rates.

5.    Until 1957, hydro-power was locally controlled. 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 (locally-owned) hydro-electric plants which supply the city and surrounding area (with) abundant and cheap electrical power.”

6.    Following a rockslide collapse of a plant in 1957, Albany determined to gain control. NYPA Chairman, Robert Moses (ex-officio, emeritus, and esteemed former president of the Liars Club) told the people that NYPA, acting as “steward” of Niagara’s hydro-power, would be the only way to insure prosperity in this region, which was dependent on keeping power costs low. 

7.    A 50 year license (until 2007) was granted to NYPA, with the consent of the people and their local leaders. 

8.    After 50 years of NYPA “stewardship,” only two places in the USA pay more for electricity than the Niagara resident: New Hampshire and Hawaii. According to Electric Power Monthly, 25 percent of the nation pays less than half.

9.    If you searched the world, you won’t find another place that generates billions of dollars of electricity and the locals* pay nearly the highest rates in that country.  (*Being considered for the “Guinness Book of World Records” under: “World’s Stupidest People.”)

10.    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. 

11.    As we buy expensive electricity from wealthy British investors, NYPA takes our hydro-power and sells it elsewhere at low rates.

12.    Meanwhile, NYPA swells with patronage. Instead of providing low-cost electricity for this region - which would create thousands of good-paying local jobs – the profits from our hydro-power pays for thousands of high-paying “administrative” jobs in Albany or White Plains, a suburb of NYC.

13.    Eureka: NYPA, with no direct accountability to the people, over five decades, accommodated the ten-thousand back-door, sweet- heart deals --at the behest of successive politicians - that diverted almost every benefit of having hydro-power in our midst.

14.    It isn’t true that WNY gets no benefit from NYPA: 120 of WNY (politically) favored businesses, employing 43,000 people, receive allocations of low-cost Niagara power. But how about the other 10,000 businesses? How about the one million people living in the region? There’s enough electricity generated to give everyone within 30 miles
of the river low-cost power. Do the math.

15.    Suppose you had an asset, let’s say the most dynamically descending river in the world, where billions in hydro-power is produced, and someone – say Albany, or, more specifically, NYPA, agreed to manage it for you. And let’s say you were a person of below average intellect - and you agreed, and NYPA gave you, for every dollar earned – 2 cents. Their management fee: 98%. That’s analogous to NYPA and WNY.

16.    The Niagara Power Coalition, “representing” the  region - support NYPA’s re-licensing  — in return for a microscopic  allocation of power and a seven way (municipalities/school districts) split of $5 million annually. Compared to the value of Niagara power, $5 million is five cents.

17.    NYPA deceived us and shouldn’t get renewal. Condemnation of NYPA’s power plants is the method to take our power back.

18.    Former New York governor, Franklin Roosevelt, in his effort to form NYPA, said he wanted to "give back to the people the power which is theirs." The end was right, but his means were wrong. Once they take it, Albany never, never, gives anything back.

 

Back to Top

 

Stupid is our name

Says NYPA: Just a gaggle of gooses

By Frank Parlato Jr.

August 15, 2006 (Niagara Gazette)
August 21, 2006 (PoliticsNY.net)

I’d like to propose we change the name of our county from Niagara to Stupid.

Where else could you find a place that produces billions of dollars worth of a commodity that everybody uses, a commodity that once made them rich — who signed their rights away — for 50 years — exported it — at cheap prices — then paid exorbitantly for the same commodity; descending — during this time — from prosperous to dead broke. Who elect leaders who, when their first, bankrupting, 50 year deal is up, stand ready to sign another 50 year deal; and, finally, the embellishment: the dunce cap on the pin-head of a fool: an apathetic, uninformed public?

They don’t know, for instance, that the New York Power Authority, a quasi-governmental, Albany-controlled, “public benefit” corporation, now in the final months of a 50-year license to control the hydro-electric energy of the Niagara, sells none of it to local residents. Niagara-power goes to New York City and eight other states.

They don’t know that, as their inexpensive local power crosses state lines to enrich states such as Tennessee and New Jersey, only two places in the USA pay more for electricity than the Niagara resident: New Hampshire and Hawaii. According to Electric Power Monthly, 25 percent of the nation pays less than half.

A bankrupt people who have the greatest hydro-electric power in the world — who neither get use of their locally produced power, nor get inexpensive electricity — is one stupendous irony.

Harken back then, my friends, to its genesis, to 1957, when Robert Moses told the people here how NYPA, having exclusive control of Niagara’s hydro-power, would insure continued prosperity in this region. A skillful liar, Moses, deceiving an innocent, trusting, prosperous people into the loss of their asset, left a legacy of riches to ruin, a saga, spanning three generations, of genuine pathos.

 


MOMENT IN HISTORY 1957

NYPA Chairman Robert Moses (left) explains to intelligent Niagara region representative (right) that turning over the greatest hydro-energy in the world to Albany control will be the smartest thing the region can ever do...


It might be a story of innocent ruin, a people deceived by those elected to represent them, but it might also be bizarrely comedic, with a well defined stooge: the people of Niagara.

Consider: NYPA’s license expires next year; we could gain control of our power. Like we did when we were rich — when we were the world leader in power production, when they called Niagara Falls the “Power City” — when we had inexpensive, abundant electrical power — and businesses (and jobs) came rushing here.

But, curiously, a shadowy group called the Niagara Power Coalition — comprised of representatives of what some are pleased to call the Stupid Seven (S-7): Niagara Falls, Niagara County, the towns of Niagara and Lewiston, and the Niagara–Wheatfield, Lewiston-Porter, and Niagara Falls school districts, are willing to gift NYPA another 50 year license — until 2057 -- in return for a proportional pittance: $233 million, paid over 50 years, and a tiny allocation of low-cost Niagara power — which some politicians of S-7 will control.

S-7 plans to relinquish, on behalf of current and future residents of this county, a billion dollar a year asset (in today’s dollars), in return for a seven way split of $5 million annually, not factored for inflation. It will be $5 million, split seven ways, 50 years from now.

Apparently, NYPA executives know that ignorance (in Niagara) is bliss (for NYPA). They know they don’t have to sell Niagara power to Niagara. The obtuse ones here think they get their power from NYPA because NYPA power plants are here — offering free tours of the power vista and free parking for waterfowl observation.

Niagara residents, however, get their power from burning coal and other inefficient methods, purchased at high mark-up from a company owned by investors from England called National Grid.

Ironic, isn’t it? As we buy expensive electricity from the Brits, NYPA takes our hydro-power and sells it elsewhere at low rates. Lamentably, the most ubiquitous of waterfowl, observed, quietly, by NYPA executives, are colorful gooses, living in homes throughout Niagara, paying high electric bills, unaware they are in a world-leading, electricity-producing region and getting none of it.

Still, even the denizens here ought to comprehend: NYPA is controlled by Albany and swells rich with “patronage” jobs. Instead of providing low-cost electricity for this region — which would create thousands of good-paying local jobs — the profits from our hydro-power pays for thousands of high-paying, “administrative” and “consultant” jobs, most of which are in White Plains — a suburb of NYC, and Albany.

Although S-7 leaders would disagree, we don’t have to re-license NYPA. They prefer not to talk about whether or not to re-license, or how to get low rates for the people. Their only question is “can we get one or two million for our pet projects?”

Compared to the 50-year value of Niagara power, $2 million is two cents.

Ultimately, the stupefying truth is this: There is no inexpensive electrical power for the people who live where electricity is generated; the people don’t use their locally-produced power, they don’t know it, and, when they learn about it, don’t complain.

They don’t call us stupid for nothing.

Frank Parlato Jr. is a Niagara Falls businessman.

Back to Top

 

 

OPPOSING VIEW BY NYPA DIRECTOR

(Below is a rebuttal to Frank Parlato's article "Stupid is our name" by Michael Saltzman, Director, Media Relations, New York Power Authority

Separating NYPA Fact from Fiction

August 21, 2006

After reading Frank Parlato Jr.’s error-laden Aug. 15 commentary, one couldn’t blame the uninitiated from coming away with the mistaken belief that Western New York gets hardly any benefits from the New York Power Authority’s Niagara Power Project. That is about as divorced from reality as it can possibly be, but apparently of no concern for Mr. Parlato given his penchant for mixing fiction with fact, as he has done before in past articles about the giant hydroelectric project in Lewiston.

For the record, some 120 Western New York businesses and industries, employing more than 43,000 people, receive allocations from two large blocks of low-cost Niagara power reserved under federal and state laws for businesses and industries within a 30-mile radius of the project switchyard.  

The allocations, which are provided to employers such as American Axle & Manufacturing, Praxair, Steuben Foods, and Moog, correspond with total annual savings to businesses in Niagara, Erie and Chautauqua counties of nearly $200 million, compared to what they would have otherwise spent on their utility bills. And when you consider the multiplier effect of these businesses on Western New York’s economy, the Niagara project’s importance to the region becomes ever more apparent, with some 160,000 jobs directly or indirectly linked to its operation, along with nearly $16 billion in gross regional product.

It is also a fact that low-cost Niagara project power is sold to three upstate utilities—National Grid, New York State Electric & Gas and Rochester Gas & Electric—for resale to their residential customers without markup. In Erie and Niagara counties, utility residential customers save an estimated $17.8 million a year as a result of Niagara hydropower. 

Mr. Parlato also omitted the fact that Niagara power is sold to 17 municipal electric systems and rural cooperatives in Western New York, who receive power from the hydroelectric project under federal law for use by their residential and business customers.  

The Gazette’s readers might also be interested to know that Tennessee is NOT one of the states receiving Niagara power, as Mr. Parlato reported. The federal law requiring that 10 percent of the project’s power be assigned to out-of-state public systems applies to seven neighboring states, which Tennessee most certainly is not.  

These are significant points for an accurate rendering of the Niagara project’s importance to Western New York and upstate as a whole. But Mr. Parlato seems bent on repeating the same misinformation, even though the facts are readily available to anyone interested (www.nypa.gov). 

The New York Power Authority recognizes the importance of being a responsible steward of the Niagara project, the single largest source of electricity in the state, and giving back to the local communities. We’ve done this from the beginning of the project’s operation, in 1961, with examples including construction and continuing financial support of parks, trails, picnic and campgrounds and other attractions to enhance area recreational opportunities and tourism.  

The project’s admission-free visitors center, which has drawn more than six million visitors, is another example. So is NYPA’s sponsorship of the Historic Lewiston Jazz Festival, a three-day event in late August that has attracted thousands of visitors, producing hundreds of thousands of dollars for the local economy. 

The federal relicensing of the Niagara project has been an opportunity for the Power Authority to engage interested parties in a multiyear process for defining its continuing commitments to the region going forward. The process has resulted in balanced settlement agreements, including federal and state resource agencies and municipal organizations, that will ensure that the project’s low-cost power continues to be a great asset to Western New York’s economy for decades ahead. Those are the facts.  

 

 

 

 

Some call it Insane: Renewing NYPA for another 50 years?

By Frank Parlato Jr.

March 08, 2006 (Niagara Gazette)

March 09, 2006 (Tonawanda News)

March 29, 2006 (PoliticsNY.net)

Most local leaders stand ready to give the New York Power Authority (NYPA) another 50 years of control of our hydro- power. Some think that’s insane.Since 1957, NYPA has had control of all the electricity generated from the Niagara. Their license expires in 2007.To help evaluate what almost half a century has done, consider that, in 1956, the year before NYPA took over, Compton’s Encyclopedia wrote: “Water power helped build the (prosperous) city of Niagara Falls … the falling of water provides a great and constant source of power for (locally-owned) hydro-electric plants which supply the city and surrounding area (with) abundant and cheap electrical power.” Now, after almost half a century of NYPA, the people who have the greatest natural hydro –power in the world have neither control, nor use of that power, nor inexpensive electricity. According to Electric Power Monthly, only two places pay more than we do: New Hampshire and Hawaii. 13 states pay less than half. We have NYPA to thank for that. NYPA generates more than two-thirds of a billion dollars worth of electricity annually from the Niagara, but sells that power to NYC, to government agencies downstate, and, ironically, to seven other states. In a wild twist of fate, NYPA sells none of the Niagara-generated power to the people of Niagara County. We get our power from burning coal and other expensive methods, purchased at high mark-up from a company owned by foreign investors in England (National Grid). Let’s use an analogy to show how absurd this is: Suppose a region grew marvelous apples – red and delicious; they were famous for it. They could get rich from the sale, and healthy from eating – but the people and their children – for 50 years - never tasted, or profited (unless, of course, they moved away - which many did). Then these people and their uniquely inept leaders renewed the license of the “Apple Authority” to have dominion over their apples, and, for another 50 years they imported far more expensive, but inferior apples, or went without Apples, though the orchards were all around them. And the people remained dead broke. You’d call these people insane, wouldn’t you? When NYPA first persuaded us it should take over, following a rockslide collapse of a local power plant, we were told we needed NYPA, headed by the power-mad Robert Moses, to manage our power, and make sure the people, and not a few, greedy, corporate barons or political patronage hogs – got the benefit. It turned out to be the opposite: Although created by the State Legislature to provide “low-cost electricity to the people of New York,” NYPA became, instead, an entrenched political institution. With its Board of Directors appointed by Albany politicians, with no direct accountability to the people, NYPA, over decades, accommodated the ten-thousand back-door, sweet- heart deals --at the behest of successive politicians - that systematically diverted and denuded every last vestige of benefit of having hydro-power in our midst. Today, NYPA swells to obese with patronage jobs which entail brazenly the most miniscule work requirements-- for top wages. Ironic, is it not? Instead of providing low- cost electricity for this region – (as we were promised) which would create thousands of good-paying jobs – the profits from our hydro-power pays for thousands of high-paying “administrative” jobs, most of which are in Albany or in White Plains – a virtual suburb of NYC. If NYPA re-licensing is successful – it will mean a century without hydro- power. Yet our leaders are not talking about whether or not to re-license, or how to get low rates for the people. Instead, their question is “can we get two million or ten million from NYPA for our pet projects? Or ‘quick fix’ of deficits in bloated budgets?” Compared to the actual financial value of Niagara power, two million is two cents and ten million is ten cents. If the people and the politicians, having the power to stop it, choose to renew NYPA’s license, it will be remembered as one of the great blunders of history. They’ll write it like this: fooled them once (for 50 years): shame on NYPA; fooled them twice (for 50 more years): shame on Niagara.They’ll call us mental midgets - or worse.Where else could you find a place which produces two thirds of a billion in electricity annually; has it sent to other places at cheap prices; then pays high electric rates; is all but broke; has local leaders ready to re-license the same “Authority” who created this mess; and an apathetic, uninformed public? All you need for an insane asylum is a good location, and the right kind of people. Contrary to NYPA propaganda, renewal is not a “done deal.” If enough people complained –Congress will not re-license. If local leaders had courage, we could start condemnation - on NYPA – based on past performance. We could blockade roads and burn tires. We might go down in history as the region - with so many assets lost - who stood up to take them back, and restore “the Power City”—to Niagara Falls. Make that “Power County”- to Niagara. Insanity need not be hereditary.

 

Back to Top

 

A Tale of Two Cities: Drive Niagara Falls fast to its tomb. This, from Albany

BY Frank Parlato Jr.

February, 2006

THE MEANEST OF TIMES

It was the best of times -- for Albany.

It was an age of foolishness, an epoch of incredulity, a season of darkness – for Niagara Falls.

To most observers: an inexplicable mass of ruins. Tourists coming here, seeing a ruined city, gesticulate, what went wrong?

You would think Niagara Falls had all the advantage - the cataracts, the hydro- power, a famous name. It isn’t the people; if they are no better than those in other places or times, they are no worse.

It might be fame echoing from a distance, rumbling like falling waters, menacingly, through all this space of time: The name Paris, Stockholm or Peking, may not be better known; certainly more know the name Niagara Falls than know the name of its master, Albany; with the most celebrated natural landscape, synonymous with power, the most-heralded waterfalls in the world, it is a small town failing to live up to its too-big name.

But ghosts vanish as the wicket closed: in Niagara Falls, its residents ask, what went wrong? It was the worst of times for Niagara Falls.

Repression: the only lasting philosophy.

Some of them think they served this city well, that the fault lies in the people of the Falls, in their electing their own breed. Yes, you cannot control the mincing vanities and empty-headed giddiness of Albany politicians; you must not expect to do it. The reason, for good or evil, for the decline of Niagara Falls - is the effect of Albany on this city: Albany took its waterfalls - that 17 million visit every year, took its electrical power generated from the descent of roaring river. They took their jumbo airport – the region’s largest - clean stole it, and promised to run it, then closed it, thirty years ago. And, as if to ensure a winter of despair – even in summer, Albany gave, to gain a little revenue, a tiny foreign nation called Seneca - the keys to the hunting grounds – the pilfering from petty rascals their gaming dollars. If Albany gave Seneca instant wealth, and, surer than death, no taxes to pay – and keys to unlock kingdom’s gates, in doing so, Albany gave the people of Niagara Falls, the keys direct the other way. They were dedicated to the devil.

“Tell the Wind and Fire where to stop, but don't tell me," sayeth Albany to Niagara Falls.

THREE EXAMPLES OF ALBANY’S NIGHTLY CARE OF NIAGARA FALLS

A night to bring the dead out of their graves

1 Tickle, Tickle, Pickle, Pickle

The Seneca-Niagara (read Albany) Casino…

In 2002, Albany gave to the tiny, foreign nation, of approximately 7,300, the Seneca Nation of Indians, their own, brand new country in what was formerly a part of downtown Niagara Falls.

Gifted to build a casino, it was hoped it would attract tourists, be a catalyst for development, and generate revenue for Albany -- through collection of a percentage of slot machine revenues. There was also a provision to provide money for the “host community” which was believed at the time to mean the city of Niagara Falls.

None of it worked as promised -- except for Seneca and Albany.

Apart from property taxes on land and buildings lost to a foreign nation, the other costs associated with gambling were not discussed. When casinos open, pathological gambling goes up; bankruptcies go up; crime goes up, as it has in Niagara Falls. And for every job a casino creates, one (or more) local jobs are lost since people spend more on gambling and less at local businesses.

But Albany will take care of Niagara Falls, Albany promised.

The Seneca-Niagara Casino, housed in the city’s former convention center, opened December 31, 2002, immediately killing a destination-oriented convention business which brought millions of dollars from tourists to local businesses. Ironically, when the convention center became a foreign casino, it wasn’t frequented much by tourists anymore, but, mainly, by middle and low-income residents of Western NY. This type of operation, where a casino “wins” from a large number of low-level, local gamblers, $50-100 each, is known as “the grind.” Seneca “ground” from 11,000 average daily visitors about one million dollars per day.

But Seneca has also the right to open non-gaming businesses without paying taxes -- even if it competes with tax-paying businesses in Niagara Falls. Seneca opened a buffet, a pub, a “high- end” steak house, an Italian restaurant, an Asian restaurant, coffee shops, a glamour spa, all kinds of gift and merchandise stores, and a 26 story hotel – all of which compete directly with local businesses.

Meanwhile, two local hotels were foreclosed, a third hotel closed. Stores have closed. Restaurants closed. People opt to dine at glamorous Seneca restaurants where tax- free food gets them more for less.

More stores are coming, and the new Seneca-Niagara Hotel, the largest hotel in the area, with deluxe rooms and pillow-top beds, ought to impact this season: Local hotels would have pillow-top beds, too, if they paid no property tax, sales tax, income or bed tax. On slow nights, with 604 rooms, Seneca can offer tax-free, luxury rooms at the same price that mid-quality, tax-paying US hotels can offer.

A smoke shop is anticipated: After beating locals at slots, Seneca can offer odds for lung cancer -- tax-free.

True, Seneca generated $100 million in revenue for Albany, and $72 million was paid in local payroll during 2004 – most of which was paid at near minimum wages. Meantime, $300 million in gambling losses came out of locals’ pockets, who, sometimes, gambled with more than entertainment money. Seneca holds almost a hundred mortgages on customer’s homes. Lost property tax on (former USA) now Seneca land, lost convention business and lost business from unfair competition adds up to untold millions.

2. POWER TO THE POLITICIANS - OF ALBANY

50 years! (let’s try for 100) Gracious Creator of day! To have your local power stolen - for 100 years!

There is no cheap electrical power in Niagara Falls.

But this is where power is generated.

Search around the globe, and you won’t find another instance of a place where they generate billions of dollars worth of electricity and the local people don’t get cheap electricity.

Why doesn’t this add up?

Niagara Falls was once “The Power City;” it was the world’s first and greatest generator of hydro- electric energy. The Niagara generates more than $1/2 billion worth of electrical energy per year.
From 1895 to 1957 that power was controlled locally and, perhaps, not coincidentally, the region prospered.
In 1957, Albany took control of the hydro-power generated from the Niagara River through the New York Power Authority (NYPA).
Although NYPA was created to deliver “low - cost electricity” we pay among the highest rates in the USA.
Under Albany/NYPA control, the people here get neither low-cost power, nor even the use of electricity generated by the Niagara. NYPA sells Niagara hydro-electricity to New York City, and seven other states at low –cost while people here get high-cost electricity from National Grid (formerly Niagara Mohawk) which generates its electricity by burning coal and other methods.
A region has to benefit by its natural assets -- as it must compensate for natural disadvantages. For 50 years, we have not benefited from locally - generated hydro-electricity. But Tennessee, for instance, gets our Niagara hydro-power, paying less for electricity than we do. Thanks, in part, to cheap electricity, Tennessee is booming. Meanwhile, we pay for our disadvantages: NY is colder than Tennessee and, consequently, we burn more natural gas to heat our homes. If we weren’t fools, we would know that to help compensate for high heating bills, we should have low-cost electricity. Instead, Tennessee gets our low-cost electricity, and, because it’s warmer there, also pays less for heat. Tennesseans call that a “two-for-one.”
Fortunately, the 50 year license granted to NYPA to control our Niagara hydro-power expires in 2007. NYPA wants to renew its license for another 50 years -- in exchange for a few million per year in cash – with no increases for inflation - and selling a comparatively minute amount of power (less then 1% of Niagara’s hydro – power) to certain municipalities at low cost. The ratio and the absurdity of what NYPA is offering is approximately: If I made $1000 per week by controlling one of your essential assets, and I paid you a dollar a week in compensation. Meanwhile, you had to rent a similar and essential asset for the high-cost of $50 per week – and you were too stupid (or apathetic) to realize you were being duped.
Contrary to what Albany/NYPA, and some local officials tell you, NYPA’s 50 year renewal is not a done deal. Based on the last 50 years, NYPA should be condemned – literally. Locally exercised “eminent domain” (or condemnation) of NYPA’s power plants for the public good might be the best, reasonable method to take our power back. For, after all, every region - like every person - has the right to prosper from their natural assets. Just ask the people in Tennessee.

3 The ghost that vanished when Albany managed the park

There is a great crowd coming one day into our lives - and Albany alone shall profit: this has been Albany’s management style of the Niagara Falls State park
All through the cold and restless interval of 120 years, they whispered in the ears of the people of Niagara Falls –taxes are not Albany’s remedy for all things.

It can manage profit centers- quite nicely -- for itself.

Ever since father Louis Hennepin wrote about the falls in the 17th century, it has been pictured in men’s imagination as a place of pilgrimage; Niagara Falls was the first tourist destination in the western world.

In 1886, following Frederic Law Olmsted’s plan, a 19th century Albany – one far different than today - created the first state park in the USA. A garden in which the fruits of life hung ripening, waters of hope that sparkled in everyone’s sight, and profit promised for all - -- the Niagara Falls State Park. A moment, and it was gone.

Gone for all, except Albany - which made it an enormous profit center, and deprived the city of the spin-off every other area known to the world enjoys from tourist- drawing natural landscapes.

The most visited state park in the nation- 300 visitors to every resident and here a ghost town of a city – all but dead and broke – and across the river, Niagara Falls, Ontario, is a boom town.

Albany did it, and, all the while, hypocritically chanting, “this is an Olmsted park” – while, simultaneously, violating every principle Olmsted had - which was to keep this park green.

It was Olmsted’s ideal to see the people come to it - through the city of Niagara Falls. Before and after their visit - they would spend money in the city.

Over time, under Albany’s management, tourists were routed down state-owned roads - away from the city – inside the park directly, a nature park which thrives on parking revenue, souvenirs, food, and attractions – sharing nothing with the city, leaving nothing for the city. Instead of sylvan splendor – an enormous parking lot appears.

The residents of the falls sometimes sat alone of an evening, outside the park, listening, until they have made the echoes out to be the echoes of all the footsteps that are coming by and by into their lives – millions of them, and none of which to profit them – only Albany.

Last year the footsteps were left by the feet of eight million.

Albany made sure it possessed them all.

When eight million people convene in a 100 days of summer, on less than 100 acres, naturally many of them need to eat and want to buy souvenirs. Should they leave the nature park to do that – and go into the city?

Why? asked Albany: There should be stores and restaurants here – and all for our profit keeping.

The biggest usurpation of land and revenue is the gigantic parking lots which paved over Olmsted’s vision. Their planning is brilliant: the routing of people along the Robert Moses Parkway so they see not the city; travelers travel down state- controlled roads to the state parking lot, paying $10 for the privilege, spend $8 for the cave of the winds, $12 for the maid of the mist, buy souvenirs at stores in the park, eat a meal at one of the restaurants in the park, then, without encouragement, indeed, without a single ad within the park for any activity in the city, tourists leave the park - oftentimes believing there is nothing else to do in Niagara Falls, at least on the American side; they either leave on the state-owned road out of town or cross the bridge to Canada.

It would be a far, far better thing for Albany if Niagara Falls NY were to prosper – but they do not see it; they never have seen it. In the end, it would mean more revenue, more sales tax, more opportunity for everyone – even Albany.

And it would be a far, far better thing if the people of Niagara Falls positioned all the fine gentlemen of Albany into comfortable barrels and threw them over the Horseshoe Falls; it would be a far, far better rest they go, for those selfsame Albany gentlemen than they have ever known before.

Out of simple kindness, Niagara Falls ought to do it.

Back to Top

 

If you want cheap electricity, condemn NYPA!

By Frank Parlato Jr.

January 30, 2006 (Niagara Gazette)

February 02, 2006 (PoliticsNY.net)

Some things don’t add up.

For instance, there is no cheap electrical power in Niagara Falls!

That’s funny, too, because this is where power is generated.            

Search around the globe, and you won’t find another instance of this: A place where they generate billions of dollars worth of electricity and the local people don’t get cheap electricity.

The madness of it was hammered home when Wacker Chemie AG, a German company, with plans to hire 1000 people in Niagara Falls - changed plans because – expecting –naively perhaps – that they could get low-cost power -- found there was nothing cheap about power in Niagara Falls.

Why doesn’t this add up?

  1. Niagara Falls was once “The Power City” because it was the world’s first and greatest generator of hydro- electric energy. The Niagara generates more than $1/2 billion worth of electrical energy per year. It’s one of our great natural assets.
  2. From 1895 to 1957 that power was controlled locally and, perhaps, not coincidentally, our region prospered.
  3. In 1957, Albany took control of the hydro-power generated from the Niagara River through the New York Power Authority (NYPA).
  4. Although NYPA was created to deliver “low - cost electricity” we pay among the highest rates in the USA.
  5. Under Albany/NYPA control, the people here get neither low-cost power, nor even the use of electricity generated by the Niagara.  The board of NYPA, appointed by Albany politicians, has made it an absolute (and obscene) fact that NYPA sells our Niagara hydro-electricity to New York City, and seven other states at low –cost while people here get high-cost electricity from National Grid (formerly Niagara Mohawk) which generates its electricity by burning coal and other methods.
  6. A region has to benefit by its natural assets -- as it must compensate for natural disadvantages. For 50 years, we have not benefited from locally - generated hydro-electricity. But Tennessee, for instance, gets our Niagara hydro-power, paying less for electricity than we do. Thanks, in part, to cheap electricity, Tennessee is booming. Meanwhile, we pay for our disadvantages: NY is colder than Tennessee and, consequently, we burn more natural gas to heat our homes. If we weren’t fools, we would know that to help compensate for high heating bills, we should have low - cost electricity. Instead, Tennessee gets our low-cost electricity, and, because it’s warmer there, also pays less for heat. Tennesseans call that a “two-for-one.”
  7. Fortunately, the 50 year license granted to NYPA to control our Niagara hydro-power expires in 2007.
  8. NYPA wants to renew its license for another 50 years -- in exchange for an alleged “one billion” dollars. At first blush it sounds fantastic. However, the potential value of electricity generated over 50 years by the Niagara River, factored for inflation, is estimated to be in the hundreds of billions - possibly half a trillion. NYPA is offering our local communities a few million per year in cash – with no increases for inflation -  and selling a comparatively minute amount of power (less then 1% of Niagara’s hydro – power) to certain municipalities at low cost. This tiny fraction of Niagara power – when resold at retail prices, and generously factored for inflation - added to the cash NYPA will pay - over 50 years - adds up to the widely advertised, but grossly misleading, “one billion dollar” figure.
  9. NYPA’s “one-billion offer,” even if accurate, is the grand total for the entire 50 years.  What will our region pay for electricity in 50 years - when factored for inflation? Hundreds of billions? Half a trillion?
  10. So why are local leaders buying into such a deal? The seductive nature of NYPA’s offer is that it gives a few million immediately toward the cash-starved budgets of local municipalities - to be controlled by local officials – for various, politically-favored projects.
  11. The ratio and the absurdity of what NYPA is offering is approximately: If I made $1000 per week by controlling one of your essential assets, and I paid you a dollar a week in compensation. Meanwhile, you had to rent a similar and essential asset for the high-cost of $50 per week – and you were too stupid (or apathetic) to realize you were being duped.
  12.   Contrary to what NYPA, and some local officials tell you, NYPA’s 50 year renewal is not a done deal.                                                                                    The whack we took from Wacker
  13. pulling 1000 jobs proves we need local control. Inform your local officials that based on the last 50 years, NYPA should be condemned – literally.  Locally exercised “eminent domain” (or condemnation) of  NYPA’s power plants for the public good might be the best, reasonable method to take our power back. For, after all, every region - like every person - has the right to prosper from their natural assets.     
    Just ask the good people in Tennessee.  

 

Back to Top

 

As Area leaders are being bought off for pittances….

NYPA seeks to avoid congressional approval for 50 years more of Niagara Hydro-Power monopolization and mismanagement

By Frank Parlato Jr.

November 02, 2005

Some things don’t add up.
The New York Power Authority (NYPA) has had control of the hydro- electric power generated from the Niagara River since 1957. 
Yet the people in the region do not reap any benefit from it.
Almost every kilowatt – is directed elsewhere - to New York City, and seven other states, while people here pay nearly the highest rates in the USA.
In 2004, for example, NYPA made more than one- half billion in profits from the sale of Niagara hydro-power, yet the region’s residents paid among the highest rates in NY, and, hence, among the highest in the nation. According to Electric Power Monthly – only two states pay more for electricity than New York (New Hampshire and Hawaii). In fact, 13 states pay less than half what New Yorkers pay.
Now, after 50 years, NYPA’s license for the exclusive rights to the Niagara River’s hydro- power is about to expire, and NYPA wants 50 years more.

A CENTURY WITHOUT ONE OF OUR GREATEST REGIONAL ASSETS?


Most local leaders are ready to give NYPA 50 more years of exclusive management of our power. Some people think that’s insane.
Let’s use an analogy.
Suppose a region grew marvelous apples – so red and delicious they were famous for it, and could get rich from the sale of them and healthy from the eating – but the people and their children – for 50 years- never tasted, or profited from them (unless, of course, their kids moved out of the area- which they did). Then the people and their inept leaders renewed the license of the Apple Authority to have dominion over their apples, and, for 50 more years they imported far more expensive, but inferior apples, or went without Apples, though the orchards were all around them.
And the people remained dead broke.
You’d call these people insane wouldn’t you?

NYPA has had control of our apples for 50 years, and now are seeking another 50 years - until 2057 -a whole century- it is proposed- without tasting our own apples, without getting our hydro- power for our own use.

That’s insane.


WHAT IS NYPA, ANYWAY?


The New York State Legislature created “The Power Authority of the State of New York” in 1931 to provide (don’t laugh) “low-cost electricity to the people of New York State.”
NYPA, a not for profit corporation, whose board of directors are appointed by Albany, is the largest state-owned public power organization in the US.  It operates 17 generating facilities, the most lucrative being the Niagara Power Plant.
NYPA sells its power to private utilities for resale, to government, and to neighboring states.
In a crazy twist of fate, however, NYPA sells none of its Niagara generated power to Niagara area residents.
Being a non-profit, “public benefit” corporation, NYPA is not allowed to disburse profits to stockholders. Therefore, NYPA’s enormous profits must be either utilized in high salaries, and the creation of more Albany directed (patronage) positions, and/or studies given to political donors, or, in the alternative, given back to the people in the form of lower electric rates.
Guess which they chose.

The people here, however, are apathetic about their power. Nobody is even talking about whether or not to renew NYPA’s license. The only question asked-- by so-called leaders-- is – “what’s in it for me?”
“How many crumbs can we get from NYPA?”
Nobody talks about lower rates for the people.
They talk about, “can we get two million or ten million for our pet projects?”
Compared to what the actual financial value of Niagara power is, two million is two cents and ten million is ten cents.
Even to the dull of comprehension – such as many of those who reside here – I shall make my point crystal clear: The people should take their hydro- power back.


WHO ACTUALLY APPROVES RE-LICENSING


Approval or non- approval of another 50 year license for NYPA comes from either The Federal Energy Regulatory Commission (FERC) or by  Congress.
Without public consensus, the commission will have to defer to Congress. In other words, if people complain, the re- license will not be granted without an act of Congress.
NYPA wants to avoid this.  Since if enough people complained, Congress might give the power back to the region.

HOW WAS OUR HYDRO- POWER DIVERTED FROM US?

It was in Niagara Falls that hydro- electric energy was first demonstrated to the world and the promise made that the common people could have inexpensive (if not free) electricity. By diverting the rushing power of descending water, Niagara Falls came to be known as “the Power City”. And, for years, the region profited.
Following a collapse of a Niagara Mohawk power plant from a rockslide in 1957, Albany and Washington worked together to divert local control of hydro -power.
Sage voices warned against it, but Albany prevailed, promising everything to everyone.
We were told we needed NYPA, headed by the power-mad Robert Moses, to manage our power, and make sure the people, not a few, greedy, corporate barons or political patronage hogs – got the benefit.
It turned out to be precisely the opposite.
After 50 years, the people who have the greatest hydro -power potential in the world, neither get the use of that power nor have inexpensive electric bills.

BUT WHY DO OUR LEADERS WANT TO RENEW NYPA’S LICENSE?

Because they are going to get an apple a day.
NYPA, hoping to bypass congressional approval by getting local "consensus" to support its proposed new licensing, is attempting to silence/buy off everyone who they label as “Stakeholders,” a euphemism for “potential squeaky wheels.”
“Stakeholders” must be satisfied they are getting fairly compensated for the use of our regional asset and sign off on the re-licensing agreement.
Niagara County has already settled.  Each of seven “stakeholders” there will get a tiny stipend – roughly equivalent to a single apple out of an orchard per year.
Niagara Falls, Niagara County, the towns of Niagara and Lewiston, and the Niagara –Wheatfield, Lewiston -Porter, and Niagara Falls School Districts settled for $233 million over 50 years, including a "signing bonus" of $8 million, and $5 million annually through the end of the license agreement. Niagara's communities will also receive an allocation of low-cost power from the authority. In computing the deal, the full retail value of the electricity offered at low cost is used to inflate the value of the settlement to more than one billion over 50 years.
It seems fabulous at first glance. A billion dollars!!!
The five million which the seven Niagara county entities would split, however, isn’t factored for inflation. In a highly inflationary period – such as we saw the last 50 years, that five million could wind up being equivalent to the buying power of $500,000 or less.
Consider what $500,000 was 50 years ago.

 

A PARALLEL WITH ALBANY’S CONTROL OF FALLS' TOURISM


As most locals know, Albany controls tourism in Niagara Falls. By their aggressively pro- Albany management of the Niagara Falls State Park – the most visited state park in the USA, Albany, which controls all major concessions and parking, diverts both tourists and profits away from the city and its people - and into the park- then sends the profits to Albany. It is tantamount to a Tourism Authority, and has helped bankrupt a city where 17 million tourists visit annually. 
Have you ever heard of a city getting 17 million paying visitors – 300 to every resident – every year- and is broke?
But there is no satiating Albany- a city which exists solely for politics. They took our two greatest assets—hydro-power and tourisms and diverted it to themselves.

SUDDENLY IN THE NEWS

For almost 50 years we never heard much about NYPA. Now they want license renewal and daily we are hearing about the generosity of NYPA in newspaper stories. They are joining green commissions, bringing in terrorist experts, and offering “huge” monetary incentives to municipalities, (if they pledge to vote for 50 year renewal.)
Uninformed people read the stories and say- “gee whiz! Lewiston–Porter is going to get a million dollars. Boy- we just won the lottery. Thank you Philip Morris, er- I mean, thank you NYPA.”
But we OWN the lottery.
The Niagara River is in our midst.

WHAT THE NYPA –OFFERED- PITTANCE IS IN PROPORTION TO THEIR EARNINGS

NYPA makes more than 500 million per year from the Niagara River, even after patronage, and studies done by politically connected consultants are subtracted.
To put it in perspective, say you made $500 per week -- thanks to the essential help of some people, and, in return, you gave them 50 cents a week.
To make the picture clearer, while you dutifully gave your 50 cents every week to those without whom your license could not be renewed-- you spent on political hacks and consultants -from your expense account- a thousand a week.
This is no exaggeration.
NYPA’s budget, for example, for re-licensing is $52.1 million- and much of it is for consultants who perform seemingly endless studies.
The NYPA minutes are sometimes laughable but they help illustrate the point:
As reported in the Niagara Falls reporter:
"The number of studies identified in the 2002 meetings was used to estimate 2003 study budgets," it is explained in the minutes from a NYPA board meeting held on Sept. 23, 2003.
"However, the level of studies increased and additional studies were added in 2003 which led to unanticipated costs in 2003. Although very successful, (re-licensing effort) has taken longer than anticipated, which further compresses the time allocated to conduct studies and gather information. This time compression, coupled with the additional studies and/or expanded level of study effort, has increased the re-licensing costs beyond those anticipated in 2001 at the time of the initial contract award."
NYPA increased the amount for “studies” from $15.9 million to $24.9 million, and re-licensing director Keith Silliman told NYPA that they might need $13 million more (for studies, mainly) to complete the renewal process.
$52.1 million, by the way, is more than half what NYPA offered Buffalo and Erie County over 50 years.
Congressmen Brian Higgins called NYPA – “Enron like –in their excesses.”
But he misses the point. Higgins is fighting NYPA, trying to get for Buffalo, not two million a year, but ten million- a figure which represents four thousandths of a percent of NYPA’s annual revenue.
But, if the license isn’t renewed, and the Niagara region controlled its own Hydro- Power, then, instead of $10 million, Higgins could have $100 million a year for Buffalo.

But nobody’s talking about that.

Officials in most municipalities have signed on because, after literally being starved out by Albany, with our parks and our power –a pittance seems like a fortune.

SELLING OUR SOULS FOR A DIME.

Niagara Falls, for instance, is going to get $500,000 from NYPA as a signing bonus this November. Like beggars starving for a morsel, Niagara Falls needs $500,000 desperately.  The devil said, “We have this little clause here-- you have to support our 50 years- to get your money.  After all, you haven’t had hydro- power – the soul of the region -these last 50 years. You won’t miss it the next 50 years. But 500k, that’s something real.”


PATRONAGE ? AND GREASING SQUEAKY WHEELS—NOT REALLY…


Louis Ciminelli was appointed by Governor Pataki in 1995 to the NYPA board, and was its chairman from 2002 - 2005. ART VOICE reported that “Federal and State election campaign databases” show Ciminelli donated $123,935 to Republicans. Pataki was the largest beneficiary of Ciminelli’s donations. In fact, Ciminelli, in 2002, held a Pataki fundraiser which raised $400,000 for the governor.
By the way, to understand how these things work, the Federal Energy Regulatory Commission (FERC) recently approved a new 50-year license for NYPA to continue operating the St. Lawrence Power Project.
To get the renewal, NYPA got ten “stakeholder” towns and school districts in St. Lawrence County to agree to divide up two million per year. Other squeaky wheel pittances went to parks, and millions went to studies to placate environmental groups and enrich favored consultants.
NYPA gave money to study nesting platforms for osprey and loons (not the human kind) and grassland nesting for sandpipers. The locals don’t get cheaper power –as do seven other states from their dam- but they get studies about eel migration.
NYPA gives $200,000 to host communities, and their unsophisticated politicians are paraded out for quotes:
“I want to congratulate … Governor Pataki (for) getting the job done right,” said Lisbon Town Supervisor Roger Watters in a press release.
“I am extremely pleased the Power Authority has received its license,” said state Sen. Jim Wright. “This will benefit the North Country economy.”
NYPA’s new license “provides long-term stability to the North Country’s economic engine,” said Massena Village Mayor Ken MacDonnell.
In Niagara, NYPA is moving fast to take care of squeaky wheel environmentalists. The Greenway Commission — charged with creating a study for an interconnected system of parks along the Niagara — hired Joanne Willmott, who is, ironically, NYPA’s Regional Manager of Community Relations to be chairman.

NYPA still needs Buffalo, Erie County and the Tuscarora Nation- who during the original licensing of the Niagara Project fought hard to prevent the takeover of their land. It also needs an apathetic people to remain quiet or act pleased with the pittances already offered.

IF ROBERT MOSES COULD SWIM

When the original takeover by NYPA was affected, and the Niagara Power Plant completed, NYPA Chairman, Robert Moses said, “We have learned an ancient truth—that men of good will working together are unbeatable.”

And speaking of truths let me tell you an Aesop fable:
An apple orchard was beside a cow pasture, and the rains came and washed both the apples and the cow terds into the river. As they were going downstream together, the terds were heard to exclaim, “my, how we apples can swim.”

The moral is “don’t let the Albany terds steal our apples once again.”

 

Back to Top

 

Developer vows court fight to halt Power Authority Relicensing Deal

November 22, 2005

Analysis by Mike Hudson

While Niagara Falls Mayor Vince Anello has already included money expected from the relicensing of the New York State Power Authority in next year's budget, one area developer is hoping to derail the agreement by any means necessary. Frank Parlato Jr., who owns the One Niagara building at the foot of the Rainbow Bridge as well as other properties in the region, said the deal to allow the Authority to retain control of the Robert Moses Power Plant here for another 50 years constitutes public policy at its worst. "These people have had control of Niagara's hydroelectric power since 1957, and we're paying some of the highest rates for electricity anywhere in the country," Parlato said. "It's time for the people of Western New York to take back what is theirs." Last year, the Authority reported profits of more than $500 million, yet customers in only two states -- New Hampshire and Hawaii -- pay more for electric power than their New York counterparts. Customers in 13 states pay less than half of what New Yorkers pay. And the cost of electricity on the Niagara Frontier is the highest in the state, Parlato said. Ironically, none of the power generated at the Robert Moses plant is used locally. Instead, it is routed to New York City and sold elsewhere around the country. The city of Buffalo -- first illuminated by Nikola Tesla using electricity generated from the original Niagara power plant on Nov. 16, 1896 -- now relies on high-cost power imported into the region. The state Power Authority was formed during the height of the Great Depression in 1931, charged with the mission of providing "low-cost power to the people of New York." Consolidating various private power companies, and often using condemnation and eminent domain to seize transmission lines and generating plants, it quickly grew into the largest state-owned power utility in the United States. When work on the Robert Moses plant began in 1957, eminent domain and condemnation were again employed by the Authority, this time to take land from the Tuscarora Nation of Indians and Niagara University, as well as from Lewiston and Niagara Falls, where the municipalities' tax bases were seriously eroded. Set up as a not-for-profit corporation, the Authority pays no taxes whatsoever. It also is not technically allowed to turn a profit. "So they can either reduce the cost of people's power, or they can spend it on high salaries, more patronage jobs and expensive studies," Parlato said. "Guess which they chose." More than 160 Authority employees make in excess of $100,000 a year, while Authority CEO Timothy S. Carey -- who has apparently never held a private sector job in his life -- rakes in $206,000 a year. As Reporter contributor Mark Scheer recently noted, the Authority has already spent more than $52 million over the past five years on studies, paperwork and consultants in connection with the relicensing agreement. That figure represents slightly more than half of what the Authority offered to give the city of Buffalo and Erie County over 50 years under the terms of a settlement agreement that was ultimately rejected by both municipalities. Niagara County host communities won't reach the $50 million mark in terms of direct cash payments until roughly Year Nine of a 50-year agreement that they have already accepted. Under the terms of that deal, seven Niagara County municipalities and school districts would share about $233 million in cash over 50 years, including a "signing bonus" of $8 million in Year One and $5 million annually through the end of the license agreement. Politicians throughout the county have busied themselves greedily spending the cash they haven't yet received. "The outrageous electric rates people are forced to pay here is just another reason for them to go elsewhere," Parlato said. "And it's another reason for new businesses to stay away." Parlato said that Albany's control of the power plant -- along with its stranglehold on the state park -- has, more than anything else, been responsible for the sad decline of the city. "Have you ever heard of a city getting 17 million paying visitors a year -- that's 300 visitors for every resident -- and going broke? Albany took our two greatest assets, hydropower and tourism, and diverted the profits to themselves," he said. Incensed by the $7,000-a-month bills he was receiving from Niagara Mohawk to light the One Niagara building, Parlato took matters into his own hands. Installing a pair of generators powered by spent french fry grease collected from area restaurants, he took the building completely off the power grid on Oct. 21. "I told them I didn't intend to pay their exorbitant rates, or their usurious interest rates," Parlato said of his bill, which remains in dispute. "Someone's got to stand up to them." Ultimately, the decision on whether or not the Authority gets a 50-year renewal on its license to operate the Robert Moses plant rests with the Federal Energy Regulatory Commission in Washington. But there's a hitch -- the commission must find public consensus among the host communities. And, while politicians in Niagara County have predictably caved in to the Authority's demands, their counterparts in Buffalo and Erie County have not. In fact, Rep. Brian Higgins has already filed a formal complaint on behalf of those municipalities with the commission. If enough people complain, the commission will have to defer to Congress to make the decision, a prospect that the robber barons running the Authority want to avoid at all costs. Higgins, along with Rep. Louise Slaughter and Sens. Hillary Clinton and Charles Schumer, would likely ask some tough questions of the overpaid Authority bureaucrats. And first among them would be why customers living in the shadow of the state's most profitable power plant are paying some of the highest rates in the country for electricity. Parlato has been meeting with attorneys over the past several weeks, working on a plan of his own to block the relicensing. He said he is not yet certain which particular legal strategy will be employed, but believes that several options are open to him. "We should have free electricity here, or at least the cheapest in the world," he said.