Statement Of Assemblyman Fred W. Thiele, Jr.: “The State Public Service Commission is Broken and Must be Reformed”

In the last year, we have seen two stark examples of the State Public Service Commission (PSC) and its staff, the Department of Public Service, protecting the utility industry at the expense of the public. One example is a statewide decision to bail out aging upstate nuclear plants that will cost the public billions of dollars in the next 12 years. The second is a local decision on Long Island, where the Public Service Commission rubberstamped actions by PSEG-LI, which effectively denied community input before an electric transmission project was constructed in Eastport.

There is a common thread with both of these proceedings. In both cases, the interests of the utility industry were paramount to the PSC. The impacts to the public were disregarded.

In the case of the upstate nuclear bailout, New Yorkers have spent nearly $200 million more on their energy bills since April 1 of this year, about $1.3 million a day, because of a hidden charge added onto monthly bills. The State Public Service Commission imposed this additional charge without proper transparency or public involvement.

I sponsored legislation to place a moratorium on this ill-considered action by the PSC, but unfortunately the State Legislature failed to act. My legislation would have provided for complete public review before any charge could have been imposed on our utility bills for the benefit of the nuclear industry.

This charge may cost New York ratepayers up to $7.6 billion over the next 12 years. This means utility rate hikes, not just for residents, but for everyone including small businesses, schools, and hospitals across the state. It is another job killing tax.

Who benefits? Four (4) aging upstate nuclear power plants that are no longer competitive in the energy marketplace. We will be paying over the next 12 years to keep these plants open at the expense of ratepayers across the state. Shouldn’t the focus be on renewable energy, not old costly nuclear plants?

This is particularly ironic for Long Islanders. To this day, we continue to pay for the closure of the Shoreham Nuclear Power Station, without any financial help from the state. After paying for this corporate mistake at Shoreham, we are now being charged to keep nuclear plants open in other parts of the state. In both cases, it is nothing but corporate welfare. It is an ill-considered policy that is unfair to the people of Long Island.

Recently, PSEG-LI constructed over five (5) miles of transmission lines in the Eastport area on County Routes 51 and 55 with over 90 foot tall steel poles. The project was constructed without proper public outreach and public involvement and with a flawed environmental review. The project impacts residential areas, an historic district, as well as the Central Pine Barrens. Yet, PSEG-LI did not notify elected officials and did not bother to conduct a public meeting to explain the impacts of the project to the public. The public was outraged.

Back in 2014, the Public Service Commission promised that such projects (would) “demonstrate a thoughtful approach to aesthetics and provide adequate advance notice of proposed projects and that the outreach process (would be) sufficient for affected communities to fully understand the magnitude of the project, be aware of alternatives, and have a meaningful opportunity to provide input”.

When Senator LaValle and I wrote to the PSC on July 17, 2017 to remind them of their 2014 commitment to the public, they ignored their own promises and simply rubberstamped the project for PSEG-LI. Now, the Town of Brookhaven must go to court to get justice for the residents of Eastport.

The PSC again protected the utility industry and failed the public.

The status quo in utility regulation is unacceptable. I will sponsor legislation in 2018 that will restore transparency to the process that protects the public interest not the special interests. I support (1) repealing the nuclear bailout charge, (2) electing the Public Service Commission, (3) creating a Utility Consumer Advocate to represent the interests of consumers, and (4) increasing transparency and notice so that the public can adequately participate in utility issues that affect their community and region.