Richie Kessel: BIG Republican Political Donor

“I lost contact with Richie Kessel, who somehow was able to swim the political rapids from the Democratic side to the Republican side.”

                                                                                                           – Mario Cuomo

While a professed life-long Democrat, Kessel’s State political contributions, all a matter of public record on the State Board of Elections web site, belie his protestations.  Kessel in fact donated a total of $1,600 to Republican George Pataki and did not donate personally to his successor, Governor Eliot Spitzer or then-Lieutenant Governor David Paterson or now Governor Paterson.  While press reports stated that Kessel attended Attorney General Cuomo’s recent Long Island fundraiser, there is no record of Kessel contributing to AG Cuomo then, prior to or in the past three years since the AG’s 2006 election.  (Street Corner Conservative will be following any political giving by Kessel this year and next.)  To be complete, Kessel has donated to appointed Comptroller DiNapoli, now a State-wide official, on multiple occasions.

Some speculate that Kessel’s multiple contributions to Pataki were to curry favor with the GOP Governor who said the following in 1994: “I think they’ve [LILCO] been poorly run.  But on the other hand, I think if there is anybody who could run it worse, it would be Richie Kessel.”  In 1995, however, Pataki reversed himself and hired Kessel as LIPA Chair and CEO in 1997, confident that in an effort to keep his LIPA job, Kessel would do as directed.  In addition, Pataki surely knew that Kessel’s closest political friends and patrons were three powerful Long Island Republicans, Al D’Amato, Joe Mondello and Dean Skelos, who would have a direct pipeline to Kessel.  In 2008, lobbyist D’Amato and then Majority Leader Skelos intervened with the hapless Paterson Administration to secure Richie his latest political sinecure at NYPA.

Specifically, based on Board of Elections records, Richie has given to Republican Governor Pataki, then-Republican Senator Mike Balboni and current Republican Senator Ken LaValle and Republican Assemblyman McDonough.  Richie’s friendship with former Republican Senate Majority Leader Skelos may explain why Richie has not donated to any Democratic candidate for State Senate, a top priority of State and Long Island Dems.  On the other side of the aisle, Richie has donated to some Democrats in addition to DiNapoli, including Democrat Roger Corbin who was recently arrested by the FBI for accepting over $200,000 from a Nassau County housing developer and forgetting to declare it on his income taxes.  Corbin is, of course, entitled to the presumption of innocence.  Newsday reports that the Corbin investigation continues.  We find it interesting that Richie has not contributed to either County Executive Tom Suozzi or Nassau Comptroller Weitzman in either of their races.  Given his long-standing interest in the County Executive’s seat, Richie may have wanted to avoid supporting someone he might one day oppose in a Democratic primary for County Executive, a race Kessel lost to Ben Zwirn a number of years ago.

Lastly, we note Mrs. Richie Kessel donated to Town of Hempstead Republican Supervisor Kate Murray in her last re-election campaign in 2007.  Street Corner Conservative understands that Kessel’s spouse works for the Town of Hempstead in a patronage position.  Supervisor Murray, of course, is the official who many believe is holding up approvals on the Lighthouse Project at the Nassau Coliseum.  Those wishing to follow this from home can go to the Board of Elections web site at www.elections.state.ny.us.

THE KESSEL COUNTDOWN: ­579 DAYS UNTIL RICHIE KESSEL IS FIRED BY THE NEW GOVERNOR OF NEW YORK.

Notes and Asides

It now is readily apparent that Richie Kessel directed FOIL staff at NYPA to violate the law and delay disclosure of legally required information to hide his whereabouts.  Street Corner Conservative filed its initial FOIL request on February 17 of this year requesting Kessel’s phone logs, calendar and physical whereabouts.  Kessel had FOIL staff reply on February 24 that they “will advise you whether your request will be granted or denied on or about March 10, 2009.”  The next NYPA response (March 10, 2009) stated that Street Corner Conservative would be contacted on or about May 6, 2009 on the status of the request for Kessel phone logs, calendar and physical whereabouts.  Then on May 6, 2009, Kessel’s phone records were transmitted and on May 18, 2009—three months after the original FOIL request was filed, the seven-page Kessel calendar was made available.  As for the details on Kessel’s physical whereabouts, FOIL staff stated in the May 18, 2009 correspondence that “the record responsive to this portion of your request is being reviewed and we will contact you on June 1 to advise of the availability of such records.”

Now, Street Corner Conservative is not one to complain or whimper about minor miscues or immaterial issues.  Here’s why this matters:

For a guy who casts himself as a roly-poly consumer advocate committed to protecting the little guy, Kessel in fact hides the ball from taxpayers, the media and our elected representatives when that serves his interests and those of his Long Island political patrons.  Here’s one example that should trouble NYPA’s Board, upstate media and State electeds of both parties.  When Kessel was advocating for windmills off Jones Beach on the south shore of Long Island, he pronounced that the project would cost about $300 million.  After rumors surfaced that the cost estimates were ballooning Kessel repeatedly refused to provide cost information to Newsday.  Newsday at first played nice, continued to be stonewalled and then resorted to FOIL.  Faced with the legal requirement to now disclose the data, Kessel’s LIPA at last confessed that the project would in fact cost over $800 million and would raise LI electric rates even higher.  After Kessel was sacked by Governor Spitzer and after the true costs were revealed, Kessel’s successor killed the project.  And now at NYPA Kessel takes advantage of Earth Day to announce…windmills…in the Great Lakes.

* * * * *

As NYPA dribbles out the information about Richie Kessel’s schedule, phone calls and whereabouts, Street Corner Conservative offers the following tidbits about Richie:

Consistent with what our correspondents tell us, when he does appear in White Plains or other NYPA facilities around the State, Richie arrives late, leaves early and is mostly concerned about promoting himself at press conferences.  He spends an awful lot of time on Long Island for a fellow running a White Plains-based energy agency serving primarily upstate and WNY customers.

He has many conversations with registered lobbyists like Long Island warhorses, Al D’Amato and Jerry Kremer.  A final tidbit, Richie has been intent on placing windmills upstate from the first days of his tenure.

* * * * *

Our intrepid correspondents at NYPA tell us that Richie Kessel and his band of Long Island insiders are working full time on a scheme to buy the Long Island power plants owned by Keyspan in the event LIPA passes on such opportunity as our NYPA correspondents tell us is becoming more likely.

The following scenario derived from that inside information should scare NYPA customers, bondholders, rating agencies and those who care about upstate.

Here’s what Street Corner believes could happen: in the event LIPA determines not to buy the old, tired LILCO plants, Kessel will leverage the pristine NYPA balance sheet, borrow billions and buy at premium prices the old Keyspan plants.  He’ll claim that rates will be cut by some unproven double digit percentage based on creative use of tax exempt financing and exemption from federal corporate income tax in NYPA’s hands.  He’ll then run for County Executive based on this latest “success” once Tom Suozzi leaves for greener political pastures.

THE KESSEL COUNTDOWN: ­586 DAYS UNTIL RICHIE KESSEL IS FIRED BY THE NEW GOVERNOR OF NEW YORK.

Street Corner Conservative received from NYPA this week several of our February 17, 2009 FOIL requests.  We are told the remaining requests, which include Kessel’s “schedule and/or calendar kept and compiled on a daily basis,” will be released on May 14, 2009. 

Street Corner Conservative researchers are presently reviewing the data received and we will be reporting back to readers in the near future. 

Today, May 10, 2009, Street Corner Conservative filed with NYPA the following FOIL request:

May 10, 2009

New York Power Authority
Office of the Secretary
123 Main Street
15-M
White Plains, NY 10601

Ladies and Gentlemen:

I am a taxpayer and resident of the State of New York and pursuant to New York Public Officer Law and the provisions of the regulations of the New York Power Authority (NYPA) adopted pursuant to the Public Officer Law (21 NYCRR Part 453), I demand access to the following records by email to me if possible:

1. Phone logs of calls from and to the President and CEO of NYPA from February 13, 2009 through and including March 31, 2009;

2. Phone logs of cell phone calls from and to the President and CEO of NYPA from October 14, 2008 through and including March 31, 2009;

3. Information as to each NYPA facility or office the President and CEO of NYPA was physically present in during each business day of the period from February 13, 2009 through and including March 31, 2009;

4. Logs and records of each beginning point, each intermediate stop and each ending point of each vehicle, including without limitation each GPS device associated with or installed on each such vehicle provided by NYPA or paid for by NYPA or used to convey Richard Kessel for each day (whether or not a business day) from October 14, 2008 through and including March 31, 2009;

5. Logs and records of each beginning point, each intermediate stop and each ending point of each vehicle, including without limitation each GPS device associated with or installed on each such vehicle provided by NYPA or paid for by NYPA or used to convey Richard Kessel’s driver provided by or paid for by NYPA for each day (whether or not a business day) from October 14, 2008 through and including March 31, 2009;

6. Logs and records of each beginning point, each intermediate stop and each ending point of each aircraft (including planes, fixed wing aircraft and helicopters), including without limitation each flight manifest and flight log associated with or installed on each such aircraft (including planes, fixed wing aircraft and helicopters) provided by NYPA or paid for by NYPA or used to convey Richard Kessel for each day (whether or not a business day) from October 14, 2008 through and including March 31, 2009;

7. Information and records as to discussions, memoranda, financial and analyses and information as to the costs, effect on electric rates and financial and/or environmental benefits of a possible wind power installation in any water known as the Great Lakes whether or not any such record was created by or on behalf of NYPA.

If all of the records I have requested cannot be e-mailed to me, please inform me by e-mail of the portions that can be e-mailed and advise me of the cost for reproducing the remainder of the records requested.

If the requested records cannot be e-mailed to me due to the volume of records identified as responsive to my request, please advise me of the actual cost of copying such records onto a CD-ROM, if that is possible.

Please advise me of the cost of providing paper copies of the requested records.

If my request is deemed to be too broad or not to reasonably describe the requested records, please contact me via e-mail so that I may clarify my request and, when appropriate, please advise me as to how NYPA records are filed, retrieved, or generated.

If for any reason any portion of my request is denied, please inform me of the reasons for the denial in writing and provide the name, mailing address, and e-mail address of the person to whom an appeal should be directed. Thank you for your expected cooperation.

Very truly yours,

George J. Marlin

THE KESSEL COUNTDOWN: ­601 DAYS UNTIL RICHIE KESSEL IS FIRED BY THE NEW GOVERNOR OF NEW YORK.

This article I wrote appeared in the New York Post on May 4, 2009.

NOTES AND ASIDES

Richie Kessel is continuing to use NYPA as an employment agency for Long Island political hacks.

The latest hire:  Bert Cunningham who will be making an outrageous $174,500 annually to serve as Richie’s P.R. flack, a mere $500 less than the governor’s communications director.  Cunningham, another LIPA retread, spent 9 years aggrandizing Kessel as he ran that agency into the ground.  Interestingly, this news was not announced by NYPA or leaked to an upstate paper but rather to the Long Island Business News as part of Kessel’s campaign to maintain his profile in the event Nassau County Executive Suozzi moves on to greener political pastures.

Other high-salaried Long Island hacks Richie hired at NYPA:  Thomas DeJesu, a former LIPA employee, who is reputed to be the cousin of our unelected Comptroller Tom DiNapoli, is Vice President of Government Affairs.  Fran Evans, former chief of staff to the former Democratic leader of the Nassau County legislature, serves as Richie’s “Special Advisor.”

Richie’s NYPA inner circle looks more and more like a shadow political campaign team for a race for Nassau County Executive.  Many observers believe that Kessel is counting on State and Nassau County GOP Chair Joe Mondello to deliver 9 Republican votes on the County Legislature plus one Democrat to make Kessel County Executive should Suozzi move on.  Some wonder if Mondello is dumped as State GOP Leader, whether he will remain County Chair to make one last gasp attempt to control the County Executive seat through his friend Kessel.

On another front:  as reported by Ken Lovett of The Daily News, Attorney General Andrew Cuomo has subpoenaed LIPA records pertaining to the lobbying firm, Patricia Lynch Associates.  Lynch, former communications director for Speak Sheldon Silver, was hired at LIPA by Kessel and the records relating to LIPA have been subpoenaed by the AG.  Richie Kessel squandered LIPA ratepayer money to pay Democratic and Republican lobbyists to represent LIPA, a state agency before the state government – how ludicrous is that?  It is notable that LIPA is the only State agency whose Pat Lynch records were demanded by AG Cuomo.  After Kessel was fired as LIPA C.E.O. by Governor Spitzer in 2007, his successor, Kevin Law, had the good sense to fire all the lobbyists.  Lest we forget:  the State Comptroller’s office publicly criticized Kessel for bypassing LIPA’s bidding requirements when the Republican lobbying firm, Strategic Planning Systems, was paid $45,000 to conduct “political polls.”  Also, an investigation by Democratic Assemblyman Richard Brodsky revealed that during Kessel’s tenure at LIPA, a $120,000 a year no-bid contract was awarded to former top political advisors to Governor Pataki, Kiernan Mahoney and Michael McKern.  Mahoney and McKern left the Pataki administration to become private political consultants.

Street Corner Conservative eagerly awaits the results of the Attorney General’s LIPA investigation.

As reported by Newsday‘s Mark Harrington in late April, under Kessel’s leadership, LIPA spent $357 million on its clean energy initiative and even environmental supporters are raising questions about massive waste.  According to Harrington:  “Critics have questioned the 10-year old Clean Energy program, which effectively ended in 2008.  LIPA chief Kevin Law has already requested two separate audits of the program, which funded research projects such as fuel cells, solar panel installations and incentives to reduce home energy consumption.  In a March 13 letter to state Comptroller Thomas DiNapoli, the Neighborhood Network, an environmental and civic group, took aim at two programs for which it suggested LIPA got little bang for the combined $18 million it spent during the five years they were in effect.”  The letter cites LIPA’s own financial disclosures in noting the authority spent $8.62 million between 2002 and 2007 – years Kessel ran LIPA – on a program called Home Performance with Energy Star, which provided energy efficiency improvements to just 114 existing homes.  Neighborhood Network noted that the average value of the improvements made by Energy Star contractors was $6,771, yet LIPA paid an average of $75,614 per home to get those results.  The letter also notes that LIPA spent far more money and received far less environmental benefit than a similar program run by another state agency, NYSERDA.  Harrington noted that, “The letter stated that a related Energy Star Labeled Homes program did somewhat better, costing an average $18,708 per home while reaching some 511 residences, at a total calculated program cost of $9.5 million.”

NYPA trustees and ratepayers would be well-advised to review very carefully the cost estimates and return on investment of any environmental, clean energy or renewable program advanced by Kessel.  A future installment of the Kessel Watch will report on the sad and expensive tale of Kessel’s pursuit of wind power on Long Island.

THE KESSEL COUNTDOWN:  608 DAYS UNTIL RICHIE KESSEL IS FIRED BY THE NEW GOVERNOR OF NEW YORK.