Government Controlled Power is the wrong move for Rochester
By Justin Wilcox, November 17, 2023 – Read the opinion piece on the RBJ website here.
As the Executive Director of a coalition that advocates on behalf of businesses, taxpayers and economic growth in Upstate New York, I feel it is incredibly important for people to know the facts behind the sudden push to take over Rochester Gas and Electric (RG&E). Not only is this proposal not realistic, the proponents of it are missing the much bigger picture. As cited in a recently defeated referendum for a government takeover in Maine, there would be serious financial and societal consequences of moving from private and expertly-run utilities to Government Controlled Power.
For example, more than 800 Rochesterians have been with the company for decades and work hard to provide reliable service. Not only do they understand the pressures of inflation due to the economy, but they feel it, too. They are customers and neighbors, as well as employees. These women and men spend their hard-earned money in our community. These are my neighbors and yours, members of our churches, soccer coaches, hockey parents, and PTA members. A government takeover of the utility would disrupt their careers, their families, and cause undue anxiety and uncertainty for thousands of residents in Monroe County.
It’s easy to have negative perceptions of a global company making millions in profits, but what we don’t always see or hear enough about, are the millions of dollars being invested right back into our community. RG&E also contributes over $100 million in tax revenue annually. These significant tax contributions support our local schools, public safety, infrastructure, and other crucial services within our community, every year. They have also provided nearly $21 million in economic development grants since 2019 – grants that have been awarded to local businesses, municipal departments, associations, and academia to support manufacturing and entrepreneurship, family farms, environmental stewardship efforts, and the revitalization of downtown Rochester. And, they have committed to invest another $2.2 billion over the next five years.
On top of these community investments disappearing as a result of a government takeover, taxpayers would be on the hook for billions of dollars of incurred and ongoing costs that it would take to acquire and operate a utility company. It’s civics 101. How are our governments funded? By taxpayer dollars. How would Monroe County be able to afford purchasing the equipment and facilities from RG&E? By tapping taxpayers for the funds to do so, and increasing our debt.
And we’ve all seen the media reports and felt peoples’ frustrations at public hearings about challenges with utility service. While those frustrations are valid, none of us can afford to start from scratch. Especially when RG&E already has the industry experts, who are the most knowledgeable in the energy sector, in charge of providing us with power and fortifying our grid. While much has been made of the fact that RGE and it’s parent company Avangrid are owned by Iberdrola. It should be noted that Avangrid and Iberdrola invest heavily in sustainability and are recognized around the world for their leadership in generating clean energy. RG&E and Avangrid are also playing a critical role right here in New York State by working with key organizations and regulators like the New York State Energy Research and Development Authority and the Public Service Commission to assist the State in meeting their clean energy goals. And while the the public must hold everyone accountable, continue to provide feedback, so that RG&E continues improving service, it is also critical that the company remains focused while they simultaneously meet the state’s admirable and ambitious climate goals.
It seems that RG&E has clearly made customer service and community engagement a priority, but the fact is, improvement and change doesn’t happen overnight. However, they’ve already rolled out smart meters in the Rochester area to reduce estimated bills, improved the call center which is now answering more than 80 percent of calls within 30 seconds, and they’ve hired new customer service representatives – and are still hiring – to help with and handle billing issues. There are also new online tools available, and more than 25 community events have taken place in recent months so all of us can have the opportunity to speak directly with a representative from the company.
When it comes to the safety and well-being of my family and neighbors, I completely support having industry experts overseeing weather and storm responses in our area. Government Controlled Power would undoubtedly increase response times during weather events because unlike RG&E, the county would not have the resources to mobilize crews from beyond our county borders. That’s the important benefit of a partnership with a global company such as AVANGRID – RG&E has access to resources not only from other areas of New York, but also from utilities in other states. More often, these 1-in-100-year storms are becoming the norm. So when we are hit with the next major storm, leaving poles and wires down, we won’t be facing that crisis alone. RG&E can call on sister-companies in Maine, Connecticut, Massachusetts, and other parts of New York for aid to help restore service quickly and continue to provide safe and reliable electric and gas. However, with a government takeover, all of that would be lost.
This gamble is not worth taking. We must leave the experts in place to oversee and continue to improve upon our utility services. We cannot afford the burden government-controlled power would have on ratepayer’s pockets, or the job uncertainty and disruption it would cause our neighbors and friends. Let alone, the tax revenue and significant community investment that would be lost.
I’m urging my fellow Rochesterians to see the bigger picture here, and support maintaining the responsible expertise of our current energy and service provider here in Monroe County.