|
The Independent Power Producers of New York Inc. is calling for a state investigation into the Green Island Power Authority's attempt to create a 100-megawatt hydro power plant above Cohoes Falls.
Gavin Donohue, chief executive of IPPNY, a trade association that represents power plant owners, wrote Assemblyman Richard Brodsky, D-Westchester, on Nov. 1 requesting the investigation. His letter cited a story by the Troy Record that found that GIPA has spent $811,926 on engineering studies, legal fees and public relations for the project since early 2004.
GIPA's plan has been controversial because that section of the Mohawk River already is being used by a 38.8-megawatt hydro power plant owned by Brascan Power New York, a subsidiary of Brascan Corp. of Toronto that owns 130 hydroelectric plants.
Brascan Power New York is in the midst of getting the plant relicensed by the Federal Energy Regulatory Commission. GIPA had a preliminary permit for its plan rejected by FERC earlier this year, although it plans to apply for its own license.
"That money could have been used to further reduce rates or otherwise benefit residents of Green Island, rather than in an attempt to seize private assets," Donohue wrote Brodsky.
Jack Brown, GIPA chief executive, said the money spent is worth the public gain and needs to be put in perspective. The authority's existing seven-megawatt hydro plant brought in $394,000 in revenue in October, and three-fourths of the electricity produced at the proposed 100-megawatt plant would be set aside for local municipalities, schools, nonprofits and for economic development.
"That (money) sounds like a big number," Brown said. "This is a very, very small number in comparison to the potential revenues."
He added that the authority's spending is made public at each of its monthly meetings. Both the GIPA and Brascan projects plan to save fish and increase the amount of water going over the falls, although both sides disagree on which is better.
"We believe our plan better serves the public and the people of New York and the Capital Region," said GIPA's Brown. "That's all this is about."
Brodsky, who is chairman of the Assembly Committee on Corporations, Authorities and Commissions, said Monday he was uncertain if any investigation would take place. He said his committee typically only investigates alleged wrongdoing by public authorities, and he isn't certain if IPPNY is alleging wrongdoing or disagrees with the authority's policies.
"Once we clarify that, we'll have more to say about what, if anything, we'll do," he said.
Brascan Corp. spokeswoman Shelley Moorhead said the company would not comment on the letter because it was written by IPPNY. Brascan Power New York is an IPPNY member and sits on its board of directors.
Contacted Monday, Donohue said the letter speaks for itself, but he believes someone should look into how GIPA is spending money and awarding contracts.
"I think somebody should be taking a look at their practices as a government authority," he said.
|
