New York Power Authority

Operations and Management Audit

The New York Power Authority, which is the largest non-federal public power utility in the country, provides about one-quarter of the electricity consumed in New York State. As required by State law, we examined selected aspects of the Authority's operations. We concluded that the role of the Authority should be reassessed in light of the changing nature of the electric utility industry, which is becoming more competitive and less regulated. In particular, we note that revenues from two hydroelectric plants are subsidizing chronic operating losses from nuclear plants, fossil fuel plants, and transmission facilities. We question whether the Authority should continue to own and operate all of its facilities, and identify flaws in an internal analysis that supports continuing ownership of nuclear facilities. We also note that the losses incurred by some of the facilities are obscured to some extent by the Authority's accounting practices. We further note that the Authority lags well behind New York's investor-owned utilities in its efforts to reduce the size of its workforce. In addition, in a program intended to create jobs in New York State by selling low-cost power to certain businesses, we identify significant inconsistencies in the prices charged by the Authority for the power and in the job commitments made by the businesses purchasing the power.

For a complete copy of 95-S-110 click here.
For a copy of the 90-day response click here.
For a copy of the associated follow-up report click here.