May 14, 2008...2:38 am

Horsley Slams $2.9 Billion Sale of National Grid Power Plant

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KeySpan Ravenswood Power Plant

HORSLEY SLAMS $2.9 BILLION SALE OF NATIONAL GRID POWER PLANT

Asks For Rate Stabilization From Profits, Pay Down National Grid Rate Hike

 

 

Lindenhurst, New York – Today, Legislator Horsley called on State and Federal regulators to impose revenue sharing conditions on the $2.9 billion sale of the Ravenswood generating plant by National Grid. Horsley argues that National Grid proposed, and PSC approved, rate hikes financed the debt-ridden take over of KeySpan Energy, and therefore ratepayers are entitled to a form of rate relief. Horsley questioned carte blanche approval of the sale, without imposing strict regulatory conditions that would return a form of savings to Long Island’s economically stressed ratepayers.

“National Grid’s debt-ridden take over of KeySpan was made possible by gas hikes on rate payers. To fund National Grid’s take-over residential ratepayers and commercial customers have been asked to shoulder $113 and $733 rate increases respectively. The rate paying public was forced to finance this ill-conceived take over, and at the very least we want a return on our investment.” Horsley continued, “With the sale of Ravenswood for a $2.9 billion profit National Grid is reaping the reward of its takeover. So it’s only fair to ask ‘Where’s our share, and why shouldn’t this revenue pay down unnecessary National Grid rate hikes?’”

As a condition for takeover-approval the PSC saddled ratepayers and commercial customers with a 5.3% and 4.9% annual rate increase for five consecutive years. Conversely National Grid’s sale of the Ravenswood generating facility will amount to a $2.9 billion in profit for National Grid shareholders, as reported by Newsday.

Legislator Horsley alternatively proposed that profits from the sale of Ravenswood be allotted for the repowering of Long Island’s antiquated generating plants. Horsley called on National Grid to appropriate revenue from the sale of the Ravenswood generating facility to be invested in the operating efficiency of Long Island’s “legacy” plants, Northport and Port Jefferson. Proposals currently put forward by National Grid to repower these “legacy” plants would put the full cost solely on ratepayers.

“It is simple unconscionable that ratepayers who have been assaulted by increased energy costs would also be confronted with the cost to repower National Grid’s generating facilities. These are private assets, owned by a private sector company, and it is therefore appropriate that National Grid bear the cost of improvement. And with a staggering $2.9 billion in profit it seems funding for repowering on Long Island is readily available.”

 

 

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