New York Power Authority

Niagara Power Project: Reported Revenues and Disbursements

The New York Power Authority (NYPA) provides about a quarter of the electricity used in New York State, selling electricity to investor-owned utilities, large industrial customers, and government agencies in the New York City area. A significant portion of this electricity is produced by a hydropower plant located on the Niagara River (the Niagara Power Project). We audited NYPAís financial records for this power plant, and in particular, the controls over NYPAís financial reporting of the plantís revenues and disbursements, for the two years ended December 31, 2005. We found that this information was accurately reported in internal NYPA documents, but was not fully disclosed in public reports, because the information was combined and aggregated with revenue and disbursement information from NYPAís other power plants. We noted that, in the two years we reviewed, this power plant appeared to be far more cost-effective than most other NYPA operations. For example, in 2005, the plantís revenue exceeded its expenses by almost $166 million; in comparison, in that same year, NYPA reported total net revenues of only $58.5 million. We recommended NYPA present revenue and expense information for each power plant in its future public annual reports.

For a complete copy of Report 2006-S-10 click here.
For a copy of the 90-day response click here.