CPV Won’t Reduce Electric Costs – Letter to the TH-Record Editor

CPV Won’t Reduce Electric Costs (original title) published on-line in the Mid-Hudson News.com as “Competitive Power Ventures” [see opinion tab, which is still available] also published in the THR on May 26, 2014, p.10 entitled: “More on CPV”

 

The THR article “State stalls on new power plant” about Competitive Power Ventures Valley Energy project panders to corporate propaganda and doesn’t tell the whole story.

 

Its headline, claiming that the “Facility could help lower rates for consumers,” merely repeats CPV marketing hype. CPV will cost both tax and ratepayers. It requires a property tax abatement, sales and mortgage tax exemptions, other IDA inducements, and now demands a “take or pay” power contract through NYPA that guarantees its investors’ returns; this despite the fact that in its PSC filing CPV promised to “bear all the financial risks associated with the financing arrangements.”

 

Steve Remillard’s claim that “because the New Capacity Zone is so new, the hikes are not sufficient for securing financing” is a poor excuse for an unjustified attempt by CPV to transfer all risk to the ratepayers and taxpayers, who ultimately foot the bill.

 

Further, CPV will rely on Marcellus and other “natural” gas as fuel, which, as we saw this winter, exposes customers to extreme price volatility, and, should congress succeed in removing the current barriers to liquification and export so gas can be sold overseas where the price is three to five times higher than in the US, natural gas prices will skyrocket and electric costs will too.

 

Informed residents of Orange County aren’t falling for CPV’s self-serving hype. Maureen Halahan and others should not be so easily influenced by corporate misinformation either, if they care about the people they supposedly represent and serve.

 

Randolph Hurst

Slate Hill, NY