Foreign Ownership Translates into Higher Electric Bills
What exactly is a public utility? If you listen to
the government officials in New York State, a foreign company is just dandy and will qualify from the Public Service Commission
as a provider of electricity. While this may be old news, the continued adverse fallout from foreign ownership can no longer
be flittered away. The latest approval of rate increases goes as an example of how the entire political favoritism system
operates. The Buffalo N.Y. News reports, You’re likely to see higher electric bills soon.
“That
proposed rate increase, averaging slightly more than 2 percent annually over three years, would add $5.19 to the average bill
of a residential customer using 600 kilowatt hours of electricity, boosting it to $85.75 from $80.56 today, said Clay Ellis,
a NYSEG spokesman.”
Remember the
citizen reaction when, Iberdrola bought Energy East for $4.5 billion? If you forgot, the public rate payers put up a vigorous opposition that gained traction with the administrative judge at
the public hearings. However, you can always count on the big nose of greedy politicians to place their thumb on the scales.
“Chuckie
Schumer escorted Iberdrola in the back door here in New York State when he lobbied for the Sale of Energy East (NYSEG & RG&E here in WNY) TO
Iberdrola back in 2007”
So explain
why a sitting U.S. Senator has standing to compel state officials into approving a foreign corporation from an acquisition
that the public was so vehemently against?
Once
the Spanish company got in the door, more acquisitions occurred. Iberdrola Buys U.S. Power and Gas Distributor UIL.
“Iberdrola
said the deal would help implement its growth plans in the U.S. through 2016, seeking to increase the company’s local
footprint and a stronger focus on regulated businesses with stable cash flows.
Iberdrola U.S.A. also has the second-largest wind power generation portfolio
in the U.S.”
Here is the real rub
and the hidden motivation for giving favorable treatment to a foreign company. The miserable failure of industrial wind electric
generation is so well established that most politicians are now reluctant to even mention the pie in the sky benefits from
this extremely expensive and unreliable method of generation.
Examine the argument by Mary Kay Barton in Wind Power Destruction in New York State: ‘Clean’ Power Plan Problem, for a well thought out outline why wind power has been a total bust for the all the money spent on pushing it down the throats
of beleaguered residents. Only the pockets of crooked officials are lined as Iberdrola runs away with cash while bleeding
necessary maintenance dry.
Add
to this litany of real world objections, the ruthless record documented in the article, Iberdrola competition fine manipulate the price of electricity.
“The
National Commission on Competition and Markets (CNMC) has imposed a fine of 25 million euros to Iberdrola Generación
by manipulating the price of electricity, which is considered a very serious behavior.
Specifically, Iberdrola sanction relates to the
actions carried out by increasing the price on the c Hydraulic entrales de Duero, Tagus and Sil, between 30 November 2013
and 23 December 2013.
Article 60th) 54/119 15 of the Act determines the electricity sector as a very serious offense any tampering aimed
to alter the price of electricity or measuring the quantities delivered.”
I’m shocked, SHOCKED – Iberdrola penalized for fixing the price of electricity?
Tell me this could not happen.
Over a
year ago the report in the Democrat and Chronicle by Steven Orr, Electricity costs soar indicates:
“Residential
customers served by Rochester Gas and Electric Corp. and New York State Electric and Gas Corp., both owned by Iberdrola SA,
are not as bad off as others. Their average residential electric rates so far this month are 8 percent and 10 percent higher
than January's, respectively. They've risen 15 percent and 16 percent since December, according to information on the companies'
websites.
But
customers of National Grid were warned several weeks ago that their electric costs could go up as much as 27 percent in the
latest bills. The company reached a deal with New York state regulators that will allow it to spread those extra costs out
over a number of months.
National Grid, the two Iberdrola companies and other investor-owned utilities in New York buy electricity and gas
in the marketplace and pass it on to customers with no markup. The utilities make their money on delivery charges.”
Now National Grid is a UK company and Iberdrola a
Spanish outfit, it is a convenience for these foreign companies to just provide delivery services and let the cost of electricity
be a separate charge. The grid is limited in its capacity. Companies from Spain and the UK have long experience with industrial
wind generation. Both know well, without massive government subsidies, the industry would never exist. Wind turbines only
run on electricity, when the breezes stop blowing.
The True costs of wind electricity, concludes:
“We
can only approximate the ‘true’ cost of wind, and how much the reality differs from ‘official’ EIA
(and industry) claims. Wind resources have often been presented in a far more favorable light than they deserve. Looking at
the costs presented here they are far higher than can be justified. It has been hoped that subsidies would make wind self-sustaining
in short order, but wind appears no closer to economic viability today than years ago.”
When a foreign company with vast wind experience buys companies within the United
States, they know wind turbines are a loser. Hey, so what, they say. They make their money on distribution services, which
is determined by adding charges on base price of the electric. This lack of concern for the actual cost of the wind
generated power inevitably raises the cost of electricity to the end users. The system is structured to pass on these excessive
costs to the consumer.
Welcome to the
“PUBLIC UTILITY” culture brought to you by your corrupt elected officials and their obedient public service administration.
At least if the electric user is to suffer under the hands of a greedy utility, can’t New York State regulate a domestic
company?
James Hall – March 2, 2016
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