Crains New York - November 19, 2012 - (Page 10)

OPINION I Amateur hour at LIPA t has become painfully obvious that the prolonged power failures across Long Island were not simply the inescapable result of an unpredictably strong storm. Yes, high winds will inevitably topple trees onto above-ground power lines. But cronyism and incompetence were the reasons the Long Island Power Authority failed so completely to prepare for Hurricane Sandy, repair the damage and tell 1 million customers when their lights would come back on. The fiasco exposed what has long been common knowledge in the clubby world of Long Island politics: LIPA is a cesspool of patronage. The results of a crucial public utility being treated as a dumping ground for politicians’ relatives and cronies are clear: LIPA is a wreck. Its trustees are clueless, its management is infested with amateurs, and its technicians track outages by sticking pushpins into paper maps. We could not make this stuff up. Ironically, the authority was created because its predecessor, the Long Island Lighting Co., was so despised by Nassau and Suffolk county residents for its high prices and poor service. It was infamous for botching its response to Hurricane Gloria and a nuclear-power plant project that inflated customers’ bills but produced not a single watt of electricity. Eventually Gov. Mario Cuomo replaced it with LIPA, a government entity that became just as hated as its predecessor. Mr. Cuomo’s son, current Gov. Andrew Cuomo, has leveled harsh criticism upon the authority since the storm, certainly because LIPA deserved it but perhaps also to divert the public from his inattention to the utility for the first 22 months of his tenure. Mr. Cuomo is right, though, that LIPA probably cannot be fixed. The question now is whether to return Long Island’s power delivery to private hands. Defenders of the LIPA model say it saves ratepayers money because it does not divert profits to shareholders and pays its top executives only about $300,000, less than 3% of what some private utilities’ CEOs make. But LIPA’s record speaks for itself: Its prices are among the highest in the nation, and its service is among the worst. Now that LIPA has Mr. Cuomo’s full attention, we have no doubt he could make it functional. But governors should be focused on crafting policy and providing services statewide, not running a utility in one corner of the state. And who knows how LIPA would fare under future governors? A private, professional utility insulated from politics and answerable to the state Public Service Commission offers Long Island the best chance for reliable, affordable power. We hope Mr. Cuomo reaches the same conclusion. CRAIN’S NEW YORK BUSINESS editor in chief Rance Crain publisher, vp Jill R. Kaplan EDITORIAL editor Glenn Coleman managing editor Jeremy Smerd deputy managing editors Valerie Block, Erik Ipsen assistant managing editor Erik Engquist senior producer, news Elisabeth Butler Cordova news producer Amanda Fung contributing editor Elaine Pofeldt columnists Greg David, Alair Townsend crain’s health pulse editor Barbara Benson senior reporters Theresa Agovino, Aaron Elstein, Lisa Fickenscher, Matthew Flamm reporters Chris Bragg, Daniel Geiger, Andrew J. Hawkins, Annie Karni, Adrianne Pasquarelli web reporter, producer Nazish Dholakia art director Steven Krupinski deputy art director Carolyn McClain staff photographer Buck Ennis copy desk chief Steve Noveck copy editor Thaddeus Rutkowski data editor Suzanne Panara assistant data editor Emily Laermer researchers Eva Saviano, Amy Stern intern Ali Elkin ONLINE AND INTERACTIVE SERVICES senior web developer, interactive Chris O’Donnell ADVERTISING, MARKETING AND PRODUCTION advertising director Trish Henry senior account managers Irene Bar-Am, Courtney McCombs, Suzanne Wilson account executive Jill Bottomley Kunkes sales coordinator Danielle Wiener newsletter product manager Alexis Sinclair credit Todd J. Masura (313-446-6097) director, audience development Michael O’Connor senior marketing manager Catherine Schutten event producer Courtney Williams reprint sales manager Lauren Melesio production and pre-press director Michael Corsi advertising production manager Suzanne Fleischman Wies TO SUBSCRIBE: For print and digital subscriptions or customer service, e-mail customerservice@crainsnewyork.com or call 877-824-9379 (in the U.S. and Canada) or 313-446-0450 (all other locations). $3.00 a copy for the print edition; or $99.95 one year, $179.95 two years, for print subscriptions with digital access. www.crainsnewyork.com/subscribe TO ADVERTISE: Contact Advertising Director Trish Henry at thenry@crainsnewyork.com or call 212-210-0711. www.crainsnewyork.com/advertise FOR INFORMATION ON OUR EVENTS: Contact Event Producer Courtney Williams at cwilliams@crainsnewyork.com or 212-210-0257. www.crainsnewyork.com/events TO CONTACT THE NEWSROOM: A professional, private utility is the best bet for Long Island CRAIN’S ONLINE POLL COMMENTS ‘Undeserved impugning’ bloomberg news WE PUT THE GREAT IN GREATER JAMAICA We welcome and appreciate Crain’s interest in downtown Jamaica (“Local pols under fire: What’s the matter with SE Queens?,” Oct. 29). Given our respect for Crain’s, we had hoped your story would thoughtfully examine and accurately reflect its challenges after recent inaccurate stories in the New York Post. We were, however, disappointed that the story left mistaken impressions regarding Greater Jamaica Development Corp. The story oddly says that “doubts” have been raised about its “dealings.” Your report echoed and relied on unreliable stories in the Post, which has zealously targeted elected officials in southeast Queens. GJDC, a drive-by victim of these stories, received a subpoena from the U.S. attorney in February. We were informed that we were not a “target” of the investigation and were IS THE PETRAEUS AFFAIR A NATIONALSECURITY THREAT? Yes. It shows how easy it is for civilians to influence top brass. No. It is merely a made-for-TV soap opera. Date of poll: Nov. 13 250 votes 30% Yes 70% No asked to keep the contents of the subpoena confidential. As a result of the advocacy of Rep. Gregory Meeks, federal funds were appropriated by Congress for infrastructure improvements around AirTrain and LIRR’s Jamaica Station that will benefit thousands of riders as well as the community. The U.S. Department of Transportation, state DOT, city DOT and Economic Development Corp. all have oversight of the projects. We have a history of productive partnerships with government, particularly with the Port Authority of New York and New Jersey, the Empire State Development Corp., the EDC and the city Department of Small Business Services. All—partnering with GJDC—have made important contributions to economic development here. We recently worked with the Port Authority and the Metropolitan Transportation Authority to issue a request for proposals for developing the property discussed in your report. Responses to the RFP were briefly delayed by the recent storm. Your report’s reference to GJDC’s recent gala celebration could just as easily have been titled: “Elected officials and local community show support for GJDC’s 45 years of accomplishment in Jamaica.” We regret the report’s other implications. We rely on Crain’s reputation and practice of excellence in journalism. It is disappointing indeed that your article did not set the record straight; instead, it contributes to the undeserved impugning of the nonprofit GJDC, which holds to the highest standards of ethics, governance and transparency in advancing downtown Jamaica’s revitalization. —carlisle towery President, Greater Jamaica Development Corp. 711 Third Ave., New York, NY 10017-4036 editorial phone: 212.210.0277 fax 212.210.0799 Entire contents ©copyright 2012 Crain Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP Inc., used under license agreement. PUBLISHED BY CRAIN COMMUNICATIONS INC. chairman Keith E. Crain president Rance Crain secretary Merrilee Crain (1942-2012) treasurer Mary Kay Crain executive vp, operations William Morrow senior vp, group publisher Gloria Scoby group vp, technology, circulation, manufacturing Robert C. Adams vp/production, manufacturing David Kamis chief information officer Paul Dalpiaz founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) FOR THIS WEEK’S QUESTIONS: Go to www.crainsnewyork.com/poll to have your say. CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to letters@crainsnewyork.com. Send columns of 475 words or fewer to opinion@crainsnewyork.com. Please include the writer’s name, company, address and telephone number. 10 | Crain’s New York Business | November 19, 2012 http://www.crainsnewyork.com/subscribe http://www.crainsnewyork.com/advertise http://www.crainsnewyork.com/events http://www.crainsnewyork.com/poll

Table of Contents for the Digital Edition of Crains New York - November 19, 2012

IN THE BOROUGHS
IN THE MARKETS
THE INSIDER
SMALL BUSINESS
BUSINESS PEOPLE
OPINION
GREG DAVID
REAL ESTATE DEALS
OWNED COMPANIES
THE LIST
CLASSIFIEDS
NEW YORK, NEW YORK
SOURCE LUNCH
OUT AND ABOUT
SNAPS

Crains New York - November 19, 2012