Published: October 05, 2008 07:40 pm      

NYPA: Kessel coming on line

New president and CEO set to start in mid-October

Richard Kessel’s new job starts Oct. 14.

The recently appointed president and chief executive of the New York Power Authority says one of his first missions is to begin the process of reconnecting the state agency with its partners in Upstate New York.

The reason: His new boss, Gov. David Paterson, thinks NYPA can and should do more for communities like Niagara Falls and Buffalo.

“I think the governor realizes that Upstate New York is struggling,” Kessel said. “The economy is struggling. We’ve got to find ways to utilize NYPA to be an instrument to help Western New York.”

Kessel is already scheduled to meet with leaders in Niagara and Erie counties at the end of the month. He intends to have a direct approach to management and promised to be more of a visible presence in the upstate region than his predecessors.

“I don’t hide behind my desk,” Kessel said. “Utility CEOs generally sit behind their desks. I’m not a desk person.”

Kessel is a bit of a controversial person and his selection as the new power authority leader met with mixed reviews, especially downstate where press reports have labeled him as more of a political insider than a competent utility manager.

Kessel’s career is rooted in consumer advocacy. From 1982 to 1995, he served as the executive director of the state Consumer Protection Board where he helped negotiate rate freezes with Niagara Mohawk and other utility companies. From 1997 to 2006, he served as CEO of the Long Island Power Authority where he was also chairman of the Board of Trustees from 1989 to 1995. His stint with the Long Island authority resulted in several notable accomplishments, but is also the source of some of his strongest criticisms.

NYPA officials say Kessel deserves credit for successfully negotiating LIPA’s acquisition of the Long Island Lighting Co., a move they say helped lower utility rates for Long Island customers. In their press release announcing Kessel’s selection, NYPA officials also credit him for improving power transmission infrastructure downstate and for leading the charge in the decommissioning of the Shoreham Nuclear Power Plant.

Downstate press accounts suggest the Long Island authority’s handling of the Shoreham plant under Kessel’s watch contributed to agency debt totaling $6.6 billion that threatens future operations. Other news accounts have accused Kessel of turning the LIPA into a patronage mill for former Gov. George Pataki.

Kessel characterized press accounts of his tenure on Long Island as “overblown,” saying he inherited that authority at a time when it was in trouble both financially and from an operations standpoint. While he admits to making some errors in judgment early on, overall Kessel says he takes pride in having helped the agency improve its bond rating and stablize its rates for customers.

Kessel said his focus is now on operations at the state power authority where one of his priorities will be finding ways to improve the delivery of low-cost power to economic development projects Upstate. He said he is also open to a review of power rates and believes there may be opportunities to expand the amount of power that flows in New York by examining partnerships elsewhere, including perhaps with utility companies in Canada. Kessel said the authority also needs to address infrastructure concerns and push for greater use of alternative energies like wind and solar power statewide.

“We’ve got to lower the cost of power all over the state, but it is particularly important in Upstate New York,” he said.

Kessel said he also intends to make sure the authority cooperates fully with any ongoing investigations, including one being conducted by Attorney General Andrew Cuomo’s office which is looking at the role of some authority officials as part of a wide-ranging investigation of the State Police.

“NYPA has to get a fresh look,” Kessel said. “NYPA is not going to be effective is there are questions about its integrity.”

Local leaders say they don’t know much more about Kessel than what they have read in newspaper articles, but are hopeful he will understand the role the power authority should play in the region that is home to its most productive asset - the Robert Moses Power Project in Lewiston.

“I want him to appreciate the value of the hydropower generated here and the need to keep it here.” said Assemblywoman Francine DelMonte, D-Niagara Falls.

State Sen. George Maziarz, R-Newfane, who is one of the local leaders scheduled to meet with Kessel at the end of the month, said he’s willing to give the authority’s new CEO the benefit of the doubt, but admits he would have preferred a local for the job.

“I’m very disappointed that it wasn’t somebody from Western New York,” Maziarz said. “The crown jewel of the power authority, as they always say at the power authority, is up here at Niagara.”