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‘Delivery man’ wants more than fair share

August 3, 2013

It was a wonderful night, seeing all the local people show up in support of the repowering of Dunkirk’s steam station at the Public Service Commission hearing July 15....

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(16)

concerned

Aug-07-13 9:12 PM

judeye there where articles in the disturber at the time talking about testing the use of willow chips to help cut pollution before they went and spent 200million to upgrade the pollution control system do you not think they would have stayed with wood chips instead if it had worked? Remember they are not a utility and cannot pass on costs to the customer they have to pay for all their decisions out of profits so I am sure they would have chose the cheaper route had it worked! DUH!

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Localone

Aug-06-13 11:59 AM

Always a conspiracy right Judeye? Ive got an answer as to why they didnt..... Because its none of your business. Private industry as no obligation to report to the public what their plans or strategies are.

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judeye

Aug-06-13 7:53 AM

Concerned..guess the "forgot" to inform ANYONE. It is NOT explained in their letter. Why did they not come out at the very beginning of the discussions and inform everyone that they had in fact attempted to implement biomass but it failed for the reasons you stated?

Hmmm....

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Localone

Aug-05-13 4:04 PM

Dcronlg, NRG IS NOT A REGULATED UTILITY, hasnt been since 1999. For thinking youre such a smart fella, you sure do seem to misrepresent the basic facts.

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Localone

Aug-05-13 4:00 PM

Dcronlg, Im curious to what you mean by NRG waiting to the 11th hour to act? Does the $200 million spent to upgrade the coal not count? Or the additional 100+ million they put in since 1999 in misc upgrades and repairs becuase NIMO ran the place into the ground? A little fact, when NRG bought the place its was a ramshackle pile of crap and NRG turned it into one of if not the most reliable base load facility in their entire fleet. Do you think they had a crystal ball to tell them the historically expensive natural gas prices would drop to levels where even gas producers cant make a profit? Or that coal prices would rise at the same time? NRG spends BILLIONS of dollars around this nation upgrading an building facilities, prior to 2011 putting the money into cleaning up the coal was a good investment.

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American

Aug-03-13 10:09 PM

You mean NRG forgot to bring in the biggest greenie in the area and notify her of what happened. Heads need to roll, fire everyone, call out the CIA. Judeye you shall have your revenge for that slight.

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concerned

Aug-03-13 8:26 PM

judeye NRG tried the biomass project by adding a percentage of willow chips to the coal being injected after many attempts the chips repeatedly clogged the system and had to shut down and re-clean the system at no small expense. They found it could not be used in their system and designing and adding a new system was too expensive so they canceled the project I guess they forgot to notify you on this.

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PhilJulian

Aug-03-13 3:43 PM

DCRONIC - Net profit is what is left after deducting all costs and I did not mention cash flow. There are no variables in taxes so taxes are deducted from net profit. I understand where you are coming from but in this case taxes are deducted from the bottom line and NRG needs $8.2 milliuon in profit just to pay their taxes.

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Dcronlg

Aug-03-13 2:29 PM

PhilJ -- net profit is after taxes, not before. And net proft isn't the same thing as cash flow, either.

As a regulated utility, NRG is allowed to earn a certain level of profit, cash flow, ROI and dividends for investors -- utilities never have been a bad business. The amount of taxes paid are part of PSC's formula for NRG's income statement, so boo-hoo-hooing NRG earnings and taxes is a bit misplaced.

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joew

Aug-03-13 12:54 PM

Ole Milt had some really good quotes and the one I liked the best is-if the federal government was put in charge of the Sahara desert,there would be a shortage of sand soon after.

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PhilJulian

Aug-03-13 11:01 AM

Very well done John. It needs to be said that when NRG pays their $8.2 million in annual property taxes they are in effect subsidizing a very inefficient structure in local governmnt and education. The Dunkirk school district spends nearly $20,000 per student per year while the city and county each spend about $1700 per year per resident. Those are outrageous costs reflecting lack of spending control and NRG is called upon to pay for much of it. Just imagine having to generate $8.2 million IN NET PROFIT just to pay your local taxes. It's not fair to NRG and it certainly impacts their ability to be competitive in the energy market place. We need to get serious about reducing the size and cost of government to help NRG and other businesses that want to be part of our community.

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judeye

Aug-03-13 9:28 AM

Presenting an idea to use at least some renewable energy sources is not so far off.

Remember it was only two years ago that NRG was awarded a grant to add biomass. At the time, Drew Murphy President of NRG Northeast region said that the project "will create up to 50 processing jobs in western NY and produce enough electricity to power 12,000 households"

Now they say that they "tried" this but had to REGRETTABLY cancel the project. IT is not so far off then to suggest alternatives to dirty fossil fuels. I still am very unclear as to why they canceled the project and if some of the reasons for the cancellation could not be addressed.

To suggest alternative energy sources does not have to be in conflict of supporting to keep NRG operating in Dunkirk.

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Dcronlg

Aug-03-13 9:28 AM

NatGrid is not a freeloading cost-increasing middleman; they are a distributor. And not all distributors can be categorized as you do to them -- I rather like the role they play in getting grain from the field to the mills, the flour from the mills to the bakery and the bread from the bakery to the market.

NRG is as much at fault as NatGrid. Clearly NatGrid has an agenda to their business model. But so did NRG, when they chose NOT to upgrade until now at the 11th hour, when clearly the industry was upgrading years and years ago. NRG simply didn't want to spend the $s. NRG wanted to milk the old plant for as long as they could to maximize their profits. And now, when the entire industry is shifting more towards distribution than production, NRG is crying for grass roots help.

Upgrade the railroads when aviation is the future of transportation? Strategically & tactically, it doesn't appear to make anything but sentimental sense.

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JR14063

Aug-03-13 8:44 AM

Excellent article Mr Fedyszyn, and you are 100% correct on your views. Hopefully the PSC looks at how many people in the local community are in support of the NRG project and not all of the outsider enviro nuts who are posting the same generic responses on the PSC website in favor of shutting down the plant. Also, NY politics are going to weigh heavily on this decision, which may not be good for our community.

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Steiner

Aug-03-13 8:05 AM

The unlearned christopher rings in. Hey christopher, national grid's tactics are not different than your beloved , sacred teachers union. There, we must pay more and more for the honor of being stupid, yes stupid. Christophers ok with that, right paul ? after all it was the govt that built everything right Paul ?Paul is confused and wrong. The sierra club is in mental illness land thinking windmills can replace steam. Hey envirowakos, does the wind and sun shine 24/7 ? Is there any way to store electricity? I mean other than bukly expensive batteries ? Libs, get off your high horse. You use the same tactics as National grid and it is OK. Dirty coal from PA? Dont worry, the gals at the EPA will stop that. Blackouts is what our unlearned liberal gals want.The wackos are making war on science and technology. all of that is done via the govt employee unions and we are to accept that, because they said so.I say no way.

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Christopher

Aug-03-13 7:29 AM

The saddest part of this John, is that not only are y7ou 100% correct on everything you've written in this excellent article, but that far too many of the Observers readers think this is a perfectly acceptable practice (for National Grid)and are far too enmeshed in party politics to see the harm attitudes like this by average American Corporations are doing to the National Economy. The economics of Milt Freidman at it's "best".

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