Kevin Oklobzija//March 20, 2024// Read Here
Proponents of a public takeover of Rochester Gas & Electric have renewed their push for action, urging Monroe County Executive Adam Bello to approve funding for a study to determine the feasibility of taxpayer ownership.
Metro Justice on Wednesday said legislation to fund a study will be introduced to the County Legislature in April for consideration and vote in May. The legislature voted down similar legislation in November by a vote of 17-12.
The organization, with the backing of several labor unions, says investing the approximately $100 million in RG&E’s annual profits back into the Rochester region makes far more sense than allowing that money to go to Iberdrola, the Spain-based parent company of the utility.
“The widespread public outcry against RG&E’s ongoing outrageous billing errors and double-digit rate hikes has led to broad public support for a public utility study,” Mohini Sharma, organizing director of Metro Justice, said in a news release.
“Will Adam Bello align himself with corporate front groups for RG&E like the Chamber of Commerce and Upstate United? Or will he side with Monroe County residents, who elected him on the belief that he would put an end to insider backroom deals and create a government that works for all Monroe County residents?”
Bello, in a statement through the county’s communications department, again said funding a study would be foolish spending.
“With an assessed value of approximately $2.9 billion, RG&E is the largest taxpayer in Monroe County,” Bello’s statement said. “A public utility takeover would have a significant tax impact on the county, city and towns, village and school districts within the RG&E service territory.
“RG&E contributes annual taxes (real property, sales and gross receipts) of more than $200 million throughout the service territory, with $100 million of that within Monroe County. A public utility takeover would have a significant tax impact on residents in this region, shifting this burden to local businesses and residents. Municipal governments would be forced to look at reducing or eliminating services to absorb the loss of revenue.”
He added that RG&E’s $4 billion in assets “would need to be acquired, either through negotiated transaction or eminent domain, which likely would be a vigorously litigated proceeding that could take many years.”
Bello also said the cost of system upgrades currently being made by RG&E would be shifted to taxpayers.
Rochester City Council unanimously approved $500,000 in funding for a study, but it is contingent upon Monroe County approving an even larger share of the cost.
Bello said the estimated study cost of $1 million by proponents of the public takeover isn’t accurate, and that the real cost would be closer to $8.5 million, if done properly.
“For those reasons,” Bello said, “I continue to believe a study creating a public utility in Monroe County is not a reasonable or a prudent use of taxpayer dollars.”
Several local unions, including UAW 1997 and 1199 SEIU, as well as faith leaders, joined Metro Justice in the push.
“I hear from our members and retirees that funding a study to see if a publicly owned utility that uses all local union labor is feasible or advisable is the least we can do,” Dan Maloney, president of UAW 1997, said. “What are the opponents of this study afraid of? What do they think the data will show? Who stands to profit from leaving things status quo?
“Let’s move past fear, ignorance and greed for the greater good of our community and our families. Commission a study and let the cold, hard facts show us the way.”
But in a combined statement late Wednesday afternoon, representatives from Local Laborers’ 435, Local IBEW 36, Upstate New York Operating Engineers Local 158 and Rochester Building and Construction Trades Council spoke out against a public takeover of the utility.
“We have serious concerns over a push by local activists to replace the current utility provider with a public power system,” the statement said. “As the local labor unions that would be directly impacted by a takeover of this kind, our stance is unique from the other groups rallying behind the issue.
“If advanced, a proposal supporting public power in Monroe County would risk efficiency, create higher rates for residents and seriously impact the union workers represented by our local groups.”