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Approval of a Nov. 8 referendum would allow the Cayuga County Public Utility Service Agency to offer lower-cost energy rates to county residents and industrial and commercial businesses.
The referendum calls for changing a 1984 local law to empower the agency to establish and operate a public power utility like the 51 agencies that operate in the state.
Approval of the measure would allow the agency to purchase power, promote development of alternative energy sources and negotiate with New York State Electric & Gas for the use or acquisition of its distribution system in the county, supporters of the referendum say.
Last year, Auburn residents approved a referendum creating a city power agency.
Herbert Marshall, chairman of the county power agency, and Vice Chairman John Montone talked about the county referendum in an interview with staff writer Scott Rapp on Monday. Montone, who lives in Auburn, runs the village of Solvay's public utility operations.
Here are excerpts from that interview: Skeptics might ask why did it take 21 years for the county to change the 1984 law?
Marshall: "The laws have changed substantially as to what you can do to create this type of organization. Back when we (created the law) 21 years ago, the costs of doing something like this were totally prohibitive. . . . The laws were written specifically to totally protect the utilities, and since that time the laws have been relaxed considerably to at least help encourage municipalities to get into some form of the distribution of (power)."
Bottom line, would this referendum allow the agency to buy power and then sell it at a discounted rate?
Montone: "Yes, and to possibly purchase the distribution system. . . . This referendum gives us the ability to negotiate
with NYSEG to buy power, to generate power and to sell power throughout the county to residents, commercial and industrial customers."
Do you see this helping the county's economic development efforts?
Marshall: "One of the chief economic problems with New York state is that we're one of the highest-priced utility users in the country. Hopefully, this would make Cayuga County more competitive in their utility rates, whether it's electric or whether it's gas."
Montone: "A feasibility study will come of this if this law is passed . . . to go out and look at the system and see how much we can purchase the power for. . . . We're hoping to bring (that price) down, and that's going to create some economic development, it's going to help the farming community and it's going to help the city residents and the county residents."
Will this benefit all county residents?
Marshall: "This could conceivably turn into a benefit for every county resident."
Like the power agencies in Skaneateles or Solvay?
Marshall: "Yes, but it would be a much bigger undertaking here because it's a lot larger area, and number two, because we don't have the infrastructure in place to start out like they do."
When do you see this happening?
Marshall: "I think we need to go one step at a time. The first step is to get the referendum passed, then the organization will be legitimate and then the (agency) needs to prioritize. I think the (proposed) manure digester (plant in Sennett) would be the first step, and that would get us into the actual business phase of it. We would have a method of generating power and then we would have a method of distributing the power. And then you would go on from there. The timetable will be mandated by what we can do with the purchase of electricity, who wants to deal with us, what things are available."
Will there be a paid position to run the agency?
Marshall: "There is not going to be a paid position while we're in this stage of it. When we get into the actual distribution, it will have to evolve into a position of some kind - either a position or a contractual arrangement with somebody who can do that."
Are there any drawbacks to passing the referendum?
Montone: "Honestly, no. As far as the referendum goes, it's an all-positive thing."
Marshall: "I really don't think there's any drawbacks. There's going to be a lot of time involved . . . but that's not necessarily a drawback. I think the whole thing is very positive."
What do you say to critics who are wondering what this will cost to get going?
Montone: "Well, we're not inventing the wheel here. Many of the communities that are in public power have been in it over 100 years. We know it works. It's a proven system, and all we have to do is make it work in this community."
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