April 13, 2017

New York State Senate

202 Legislative Office Bldg.
Albany, NY 12248

Dear State Senators Joe Griffo, Elaine Phillips, Kemp Hannon, John Flanagan and
Kenneth Lavalle:

We, the undersigned groups, representing millions of taxpayers in the state of New York,
urge you to vigorously oppose Gov. Andrew Cuomos $8 billion nuclear bailout. Last
year, Gov. Cuomo provided a bailout for three nuclear power plants as part of the
Governors ill-conceived Clean Energy Standard (CES). As fiscal conservatives, we urge
you to stand up for ratepayers and taxpayers.

The CES, as constructed, would require New York to get 50 percent of its energy from
carbon-neutral (renewable) sources by 2030. Right now renewables make up just 23
percent of the states energy supply. Achieving that 50 percent threshold will require that
consumers and taxpayers cover the cost to achieve that mandate. Not only that, but all of
the states utilities and other energy suppliers will cover the cost of carbon-free emissions
that nuclear power plants will have to buy when they purchase Zero-Emission Credits
from a government bureaucracy. The plan is a subsidy for three struggling nuclear plants
(all owned by one company) that would otherwise fail financially if forced to comply
with the CES without financial help from ratepayers.

The plan isnt just a multi-billion dollar giveaway to struggling nuclear plants, its a rate
increase for New Yorkers and an increase on the cost that taxpayers will be responsible
for with electricity costs for public buildings. Schools alone account for more than 1,800
of the public buildings in New York and when their electric costs go up as a result of
Cuomos plan, taxpayers will be paying for that increase along with their own electric
bills.
Recently, Audrey Zibelman, Chair of the Public Service Commission that rammed
through the bailout (by order of the Governor), attempted to answer some questions about
the plan. The interview did not go well and in the end she couldnt give a straightforward
answer on the impact of the bailout on ratepayers. Zibelman couldnt justify why
taxpayers were subsidizing a few nuclear plants and yet others werent receiving a dime.
In fact, when confronted by the interviewer with the fact that ratepayers will see an
increase in their energy costs, Zibelman first said thats not true, but after being
repeatedly pressed on the point, all she could do was say what would happen, if we
didnt do this program?

Not only is the bailout facing mounting public criticism, the courts have gotten involved
in the controversy. The question about why only some nuclear plants received subsidies
is now the focus of legal action by nuclear plants suing the state. A lawsuit alleges
interference by Governor Cuomo in what they claim should be a free market where all
nuclear plants compete and all ratepayers benefit by that competition through lower costs.

Theres a legislative path forward that will enable New Yorkers to be protected from
covering the cost of this crony bailout and paying higher energy prices as a result.
Senator Tony Avella (D-Queens) recently introduced a bill that would use the
Department of Public Service (PSC) to repeal any electric rate increase on downstate
residents that goes toward upstate nuclear plants. Its not a good sign for the Governor
when his own party is attacking this plan.

This bailout is a bad idea. And, as a fiscally conservative member of the state legislature,
we urge you to say and do whatever you can to eliminate this bailout.

Sincerely,

David Williams, President George Landrith, President

Taxpayers Protection Alliance Frontiers of Freedom

Phil Kerpen, President Mario Lopez, President

American Commitment Hispanic Leadership Fund

Grover Norquist, President Andrew Langer, President

Americans for Tax Reform Institute for Liberty

Jeff Mazzella, President Seton Motley, President

Center for Individual Freedom Less Government

Charles Sauer, President

Market Institute