Crains New York - November 19, 2012 - (Page 6)

THE INSIDER by Andrew J. Hawkins M The governor’s scandal strategy edia reports of ineptitude in state government tend to reflect badly on governors. But Andrew Cuomo has shown a remarkable ability to get in front of them, a skill he is demonstrating again as bad press envelops the Long Island Power Authority. LIPA is the quasi-governmental agency that struggled to restore power after Superstorm Sandy. Accounts in Newsday and The New York Times revealed LIPA was using antiquated computers and communicating inaccurate information to customers, and had not even pruned trees near power lines as the storm approached. As hundreds of thousands of customers went without power for weeks, Mr. Cuomo blasted the beleaguered authority. (See editorial, page 10.) of the troubled entity. “There is a playbook that Cuomo has that involves investigating an entity, finding what he wants to find and then using the investigation to achieve the result,” said an Albany insider. Some insiders have expressed concern that the Moreland commission may provide cover to privatize Long Island’s power utility. One appointee, John Dyson, former chairman of the New York Power Authority, has opposed the public power model. Long Island is the only region in New York where the main electric utility is run by the state. In 2010, Mr. Cuomo campaigned on merging LIPA with other energy agencies to improve coordination and remove duplication. Neal Lewis, a LIPA board member and executive director of the Sustainability Institute at Molloy College, called the commission “a good idea” but said it and Mr. Cuomo should take into account reforms LIPA has approved already. “The LIPA entity is accountable to the governor. He appoints our chair; he appoints the majority of our members,” Mr. Lewis said. “I have no criticisms of the governor raising tough questions and demanding accountability. We are accountable to him. But I believe the reforms that are needed have already been approved. They’ve just not yet been implemented.” This announcement appears as a matter of record only Davis Investment Ventures Fund II $413,500,000 A Fully Discretionary, U.S. Real Estate Debt and Equity Investment Vehicle The Davis Companies Value Investing for Over 35 Years Boston, Massachusetts Norwalk, Connecticut TheDavisCompanies.com 6 | Crain’s New York Business | November 19, 2012 Some insiders and editorial boards noted that the governor had neglected to fix longsimmering problems at LIPA. He hadn’t filled three vacancies on its board or recommended anyone to replace the interim chief executive. But the criticism has been drowned out by Mr. Cuomo’s bashing of LIPA and other power companies and his creation of a Moreland commission to investigate their storm response. “I don’t believe you can fix it,” he said of LIPA. “It has to be overhauled, and you need a new system.” In a Daily News op-ed Thursday, Mr. Cuomo announced a similar plan for climate change, creating three committees to investigate the challenges presented by rising sea levels. By acting quickly and forcefully, the governor shifts the focus to his response, blunting any blow that the scandal itself might inflict on his administration. When The New York Times uncovered rampant abuse of mentally disabled adults at staterun group homes, Mr. Cuomo created a new law-enforcement agency to monitor the facilities. Another time, he launched a probe of racehorse fatalities before the reporters working on the story could get it into print. And when officials at the New York Racing Authority were found to have mishandled payouts for betting operations, Mr. Cuomo quickly won legislation for a state takeover Crain’s Insider, our award-winning politics newsletter, is now a blog. Read it every day at www.crainsnewyork.com/insider newscom http://www.bowlmor.com http://www.bowlmor.com http://www.TheDavisCompanies.com http://www.TheDavisCompanies.com http://www.crainsnewyork.com/insider

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