The Niagara Gazette (March 5, 2009) reports that NYPA was planning to file for a 13 percent electrical rate increase as NYPA CEO Richie Kessel was permitting Governor Paterson to raid $750 million from NYPA’s coffers to fund the State’s operating deficit.
Richie Kessel, New York’s leading political hack, has not only violated his fiduciary responsibility, he has deceived ratepayers.
When Kessel recommended that NYPA’s board approve the $750 million giveaway – without any legal requirement to repay – Kessel said, “the move will not result in layoffs or rate hikes for consumers.”
Niagara County legislator, Majority Leader Richard Updegrove, publicly rejected this claim pointing out that “On the very day that the Senate Democrats agree to sweep $750 million from the power authority, the same power authority was drafting a letter informing us that they are going to request a rate hike.”
Instead of using the surplus $750 million to maintain or lower consumer electrical rates, Kessel squandered the money. Kessel will do anything to please his political masters and their favored lobbyists. And that includes running NYPA into the ground, just as he did LIPA.