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Kessel is on list to head NYPA
FORMER LIPA CHIEF: Applicant surrounded by air of controversy
By TOM WANAMAKER
TIMES ALBANY CORRESPONDENT
THURSDAY, JUNE 19, 2008

ALBANY — The New York Power Authority is poised to get a new leader. On the short list is Richard Kessel, a potentially controversial choice upstate.

Last week's departure of Roger Kelley, NYPA's former president and CEO, left a void at the top of the organization overseeing the generation and transmission of electrical power in the state.

Mr. Kessel ran the Long Island Power Authority from 1989 to 2007, except for 1995 to 1997. During that time, he was criticized for excessive job patronage and massive rate hikes. A state comptroller's audit in 2003 found that he ignored competitive-bid contracting laws and used customer money for political polling, and a law enacted in 2006 prevented him from serving as both chairman and CEO at LIPA.

Since May, the comptroller has been auditing LIPA's "policies, procedures, fiscal controls, and other financial and management practices."

In a Tuesday editorial, the New York Post opined: "There couldn't be a worse choice to run the New York Power Authority than long-time Long Island gadfly and political gofer Richie Kessel."

Wednesday, a Post columnist weighed in, saying upstaters should fear Kessel's potential appointment.

"Upstate businesses and consumers should be terrified of a Kessel appointment," wrote George L. Marlin. "It's not simply that he utterly lacks business sense and experience — Richard Kessel is obsessively interested in having his picture in the paper, and completely uninterested in lowering rates."

"If he goes ahead with this appointment, Gov. Paterson will be sending a clear message to upstate: Drop dead," Mr. Marlin concluded.

One senator said NYPA needs a leader who understands the energy industry statewide.

"My concern is the preservation of low-cost hydropower in New York state," said Sen. Darrel J. Aubertine, D-Cape Vincent. "My focus is not on a single applicant, but rather that we get the right person to represent the state as a whole."

Mr. Aubertine said that New York's energy resources are spread throughout upstate, with hydropower in Massena and Western New York, nuclear plants in Oswego and wind farms in Central New York and the north country.

"It is extra important for upstate that the new chairman recognizes all that," Mr. Aubertine said.

No timetable was given for the selection of a replacement for Mr. Kelley, who was appointed to NYPA's top job by former Gov. Eliot L. Spitzer and had served in that post since July.

"The governor is looking at various candidates," said Morgan Hook, spokesman for Gov. David A. Paterson. "No decision has been made yet. He's still interviewing and Mr. Kessel is among the applicants."

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