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March 12, 2020 • Industry-related News

Public power becomes the new rallying cry of the progressive left

Public power becomes the new rallying cry of the progressive left

By Danielle Muoio

| 03/12/2020 05:02 AM EDT

Power lines in New York City. Spencer Platt/Getty Images

Over the course of several weeks last summer, power cut out in neighborhoods stretching from Brooklyn to Queens — spoiling refrigerated food, snarling nearby subways and leaving anxious New Yorkers to toil in hot box apartments.

For some, it was the last straw in a litany of perceived failings in Con Edison’s service — representative of the larger dysfunction plaguing major utilities critics say have caused headaches for decades. And it has since fueled a push for the state to take over the utility’s sprawling electric and gas system.

The issue is being pushed by the Queens branch of the Democratic Socialists of America, the left-flank organization that has become a more prominent voice in local politics after helping fuel Rep. Alexandria Ocasio-Cortez’s (D-N.Y.) upset victory over incumbent Joe Crowley. They see the cause as an extension of the "Green New Deal," a federal resolution sponsored by Ocasio-Cortez and Sen. Ed Markey (D-Mass.) that lays out a path to cut greenhouse gas emissions.

Proponents argue that without public control, utilities will resist the transition from fossil fuel infrastructure in the interest of appeasing their shareholders and unreliable service will pervade.

“We can look at climate change as a big scary monster that we’re never going to be able to defeat or we can look at it as an opportunity to fix all these other problems that we’re also facing,” Sarah Lyons, a member of the NYC-DSA Ecosocialist Working Group, said at a recent Astoria town hall on the subject.

The DSA has been promoting the platform in western Queens neighborhoods like Astoria and Long Island City that have coalesced around many of the group’s recent causes. It was in these districts that opposition to Amazon’s proposed headquarters was loudest, leading the company to scrap its plans altogether. The local chapter also played a key role in turning out voters for Ocasio-Cortez’s congressional challenge and Tiffany Cabán’s run for district attorney, which ended in narrow defeat.

Now public power is becoming a rallying cry of DSA members seeking higher office — and the latest litmus test of politicians’ leftist credentials.

“When we talk about public power, we need to make the connection clear — that our stance on public power is a logical extension of our ideology as Democratic Socialists,” said Zohran Kwame Mamdani, who is running to unseat Assemblywoman Aravella Simotas.

Keen to the rising prominence of the organization, many lawmakers have latched onto the concept.

Senate Deputy Majority Leader Mike Gianaris (D-Queens), a vocal opponent of the Amazon deal, said he sent a letter to Senate leaders calling for public power. (A spokesperson for Gianaris didn’t supply a copy of the letter.) Assemblyman Ron Kim (D-Queens) also touted the proposal — acknowledging that “DSA is now a normal body that is part of every policymaking decision.” Assemblyman Brian Barnwell (D-Queens) and a representative of Simotas also voiced support for the cause at the forum.

“My opponent took money from Con Edison,” Costa Constantinides, a public power proponent, reminded DSA members at the town hall — an apparent jab at Donovan Richards, who is running against him for Queens Borough President. Richards received a $160 donation from the utility’s vice president.

But the premise still faces an uphill battle.

The DSA helped write a package of legislation that would create a Downstate Power Authority to take over utility control, require all power generation to be renewable and owned by the existing New York Power Authority, and make all generation for government-owned properties renewable.

The sponsorship for all three bills is far short of the number of Democrats who would need to press the issue forward as a top priority for their respective conferences. And state Sen. Kevin Parker (D-Brooklyn), energy committee chairman, has voiced skepticism over public takeovers of Con Ed.

While Con Ed has become the face of the political push, the bills would also wrest control from National Grid and Central Hudson Gas and Electric.

Mike Clendenin, a spokesperson for Con Edison, pushed back on the DSA’s assertion that the utility is an obstacle in the transition from fossil fuels, noting it hasn’t owned fossil fuel plants in 20 years. While Con Edison owns and maintains gas transmission infrastructure, utilities aren’t permitted to own fossil fuel plants, since energy deregulation in the late 1990s.

“We are committed to New York’s clean energy goals and believe we can play a significant role in developing renewables and clean energy solutions throughout the state,” Clendenin said in an email. “With our $3 billion annual investments in highly reliable energy delivery, we stand ready to transmit renewable power to our customers as it is developed.”

Spokespersons for the other two utility systems also defended the reliability of their services.

“The companies are well-managed, make substantial annual investments to operate and maintain the energy delivery system — service reliability averages more than 99.9 percent — and consistently receive high customer satisfaction scores,” John Maserjian, a spokesperson for Central Hudson Gas and Electric, said in an email. “The public ownership model will not provide the same level of benefits offered by utility companies today.”

While the push for public power is relatively new, DSA is just the latest entrant in the time-honored New York tradition of maligning investor-owned utilities.

Following last summer’s blackouts, Gov. Andrew Cuomo threatened to revoke Con Edison’s franchise to operate in the city. Mayor Bill de Blasio also called for a city-led investigation into the power outages and indicated support for a public takeover of the utility without fully embracing the idea. The findings of state and city probes into the power outages have yet to be released.

The state has also increased its efforts to fight climate change. Cuomo signed a bill last summer that requires New York to achieve a carbon-free electric system by 2040, which was heralded by many environmental advocates as a landmark achievement.

The fact that calls for public power pervade — in spite of aggressive policy action by the state — signifies there’s still distrust that the state can get a handle on utilities.

“If you thought you were securing the populist, grassrootsy voice for aggressive climate responsibility, you’re not getting it,” said Karl Rábago, an expert on New York energy who runs an energy consulting firm, referring to passage of the climate law.

Replacing Con Ed would likely involve a protracted legal fight with the energy giant, as well as the complex financial and operational transfer of power lines, transformers and substations that the utility owns and operates. The utility currently has $58 billion in assets and pays more in property taxes to New York City than almost any other single entity.

But the concept of transferring energy infrastructure to municipal control isn’t entirely unprecedented. The city of Boulder, Colorado wants to take control of its power system as part of its effort to achieve 100 percent renewables by 2030. The city most recently offered Xcel Energy $94 million to take over its assets as it looks to avoid a condemnation proceeding.

Still, experts warn that public power may not be the solution to all the city’s energy woes. State-run authorities like the Metropolitan Transportation Authority aren't especially known for their efficiency or reliability.

“I’d be careful of the devil you know versus the devil you’re asking for,” Rábago said.