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NEW YORK POWER AUTHORITY STATEMENT ON IPPNY COMMENTS

 NEW YORK POWER AUTHORITY STATEMENT ON IPPNY COMMENTS
 NEW YORK, Sept. 4 /PRNewswire/ -- The following is a New York Power


Authority (NYPA) statement on Independent Power Producers of New York (IPPNY) comments:
 Recent comments by Carol Murphy, executive director of the Independent Power Producers of New York, have set a new standard for misstatement and obfuscation.
 Not only is Ms. Murphy wrong on the facts, but she is stabbing the state's competitive independent power producers (IPPs) in the back by shilling for the uncompetitive Sithe Energies plant in Oswego County.
 Some of the biggest losers if Sithe floods the Con Edison market with unneeded, overpriced electricity could be the IPPs that Ms. Murphy purports to represent. These IPPs, with realistically sized plants, could be denied the opportunity to sell to Con Edison or other New York utilities because of the supply glut created by the huge Sithe plant.
 As Ms. Murphy should know, the Power Authority and its chairman, Richard Flynn, have been strong supporters of independent power where it has been competitive. Sithe's contract to sell electricity to Con Edison, in its present form, fails this test.
 Despite Ms. Murphy's claims to the contrary, that contract poses a real and direct threat to continued operation of the Power Authority's James A. FitzPatrick Nuclear Power Plant in Oswego County.
 Con Edison will be required by federal and state regulations to buy Sithe's electricity -- even though FitzPatrick costs only two-thirds as much. Because it does not need additional electricity, the utility might elect to cancel its FitzPatrick contract, jeopardizing the plant's future viability.
 Ms. Murphy's implication that Con Edison could shut down its own more expensive generating plants to make room for either Sithe or FitzPatrick is completely wide of the mark. In a submittal Friday to the State Energy Office, Con Edison itself states that it must keep these plants in service to supply steam to its customers or to meet state Public Service Commission reliability requirements.
 The charge that the Power Authority's opposition to the Sithe plant is intended to obscure operational problems at FitzPatrick is without foundation. The Power Authority is moving ahead in its efforts to return the plant to service, a trend noted this week by the U.S. Nuclear Regulatory Commission.
 Equally unfounded is Ms. Murphy's claim that the Power Authority in 1990 tried to block IPPs from obtaining financing for projects competing against it. As the Power Authority stated at the time, when IPPNY surfaced the allegations, its intent was only to alert financial underwriters of the need to preserve the integrity of the competitive bidding process for the right to build new power plants.
 Finally, Ms. Murphy erroneously states that the Power Authority uses state tax dollars. Like her association's members, the Power Authority is self-supporting. Unlike them, it does not seek to make a profit.
 -0- 9/4/92
 /CONTACT: Stephen Shoenholz of the New York Power Authority, 212-468-6313, or home, 201-568-7565/ CO: New York Power Authority ST: New York IN: UTI SU:


PS -- NY060 -- 7115 09/04/92 17:21 EDT
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Sep 4, 1992
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