Mayor upset over latest round of exorbitant electric charges

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June 18, 2008

Municipal companies absorb big electricity charges

By JOE LoTEMPLIO The Press Republican Wed Jun 18, 2008, 12:00 AM EDT

PLATTSBURGH -- Another round of utility charges to the City of Plattsburgh has the mayor fuming.

The city was recently sent a bill from the Independent Systems Operators for about $150,000 for the month of May to help pay for transmission problems on Lake Erie.

"This is ridiculous. Why should we have to pay for problems they are having on Lake Erie?" Mayor Donald Kasprzak said.

"Some people may think I am unrealistic on some issues, but when we receive charges like this, something needs to be done."

The Independent Systems Operators, born of de-regulation in 1998, manages wholesale electricity markets and operation of the bulk electricity grid in the state.

The city, and other municipal power companies in the region, received significant charges from the Independent Systems Operators in March for what was termed "unaccounted power."

Plattsburgh was forced to pay about $282,000 more than usual, and Rouses Point, Tupper Lake and Lake Placid also received large bills.

Kasprzak called for an investigation into the charges, but nothing was done, he said.

LOOPFLOW

The latest Independent Systems Operators bill comes under the heading of "loopflow and uplift" charges.

"Obviously, they don't take us seriously, so maybe we ought to do something more than a strongly worded letter to get their attention," Kasprzak said.

He said the city and other municipal-power towns and villages should seriously consider refusing to pay the charges.

The Independent Systems Operators has warned that if the bills are not paid, power will be cut off.

"I'd like to see them cut off power to this city and the others," Kasprzak said.

Independent Systems Operators spokesman John Cordi did not return telephone calls from the Press-Republican.

LAKE PLACID BILL

Lake Placid, which also has municipal power, got hit with a bill for about $161,000 for Independent Systems Operators charges in May.

Mayor Jamie Rogers said those charges account for about 63 percent of the village's monthly bill for power.

"The problem is there is no set fee for these charges. One month, it's 30 percent; the next, it's 70 percent. It makes it impossible to budget when it's so out of whack like that."

Rogers said he understands Kasprzak's frustration, and he considered not paying the bill back in March when Lake Placid got hit hard but was told by the village attorney that Lake Placid is under contract.

"If we don't pay, it could make for a bigger problem for our customers," he said.

Kasprzak said the North Country's federal representatives need to get involved.

Rogers agrees.

"Nationally, when it comes to energy, we are small, but FERC (Federal Energy Regulation Commission) needs to pay more attention to what is going on."

jlotemplio@pressrepublican.com