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Poor planning and unreliable cost estimates boosted the cost of the state Power Authority's Poletti plant in Astoria by $275 million, state Controller Alan Hevesi said.
"New York City needs reliable, affordable and clean power, but the need for power is no excuse for wasting valuable public resources," Hevesi said.
Hevesi's audit, which he released this week, found that NYPA committed nearly $31 million to the Astoria electric plant project without evaluating alternatives commonly considered by private utilities, including partnerships with other energy suppliers.
Instead, the Power Authority has insisted on building plants itself and then failed to consider the impact of its actions on competition and the development of private sources of energy, the audit said.
The audit also found that the 11 small generators installed quickly to avoid an energy shortage in the metropolitan region cost $640 million - $190 million, or 42% more than projected.
"This audit is disturbing in light of the Power Authority's recent announcement that it will enter into a long-term contract with power producers," said Assemblyman Michael Gianaris (D-Astoria). "NYPA's history with my community in regard to the so-called temporary turbines has been troubling and this audit explains much about those troubles."
NYPA President and CEO Eugene Zeltmann disagreed with the findings of the audit, saying that "investment analysts have recognized the authority's decision-making with one of the best bond ratings in the state."
"Energy experts agree that new, clean generation is critical to meeting the growing needs of New York City residents. The Power Authority is playing an important role in addressing those needs at a cost that's reasonable to its public customers," said Zeltmann.
NYPA initiated planning to build the Poletti plant in New York City in 1997. The new plant is to be operational by spring 2005.
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