Are NYers paying too much for electricity? Documents show $4.9M pay for grid officials

March 05, 2009 06:48 am

— ALBANY, N.Y. (AP) — Tax documents show the 19 top officials of New York's Independent System Operator power grid nonprofit were paid salaries of $4.9 million collectively.
The nonprofit that controls the state power grid and electric commodity market is the subject of a hearing Thursday on whether New Yorkers are overcharged on their power bills.
The documents provided by a state official show the ISO's then-president and chief executive Mark Lynch was paid $693,500 with another $790,992 in contributions to benefit plans in 2007. Other salaries ranged from $504,740 plus $231,296 in benefits for its top vice president to $107,583 for the lowest-paid of its eight directors.
"If it comes up at the hearing we'll address it," ISO spokesman Ken Klapp said. He declined further comment Wednesday.
Two Assembly committees set the hearing following a report by McCullough Research that New Yorkers are overcharged $2.2 billion on their electric bills annually. Witnesses include the report's author, as well as officials from the ISO and the state Public Service Commission, which regulates utilities and formerly managed the power grid.
Assembly Energy Committee Chairman Kevin Cahill acknowledged that's a complex, sophisticated task, though he said ISO salaries are one area that will possibly come up for review.
"The purpose of the hearing is to take a breath and take a look at what's gone on since deregulation," Cahill said. "In this instance it's from the perspective of what the ISO has done."
"It's also possible we'll be talking about the PSC as well, and if they have a role. With the creation of ISO they've ceded what used to be a portion of their responsibility," he said. "Is it time to consider reverting to our old model here, or another model, or can the PSC and ISO defend the status quo?"
Utility, power producer and consumer representatives are also slated to testify.