CITIZEN POWER ALLIANCE

May 5, 2008

Joseph Morelle NYS Assemblyman
132nd Assembly District
LOB 716
Albany, NY 12248

Assemblyman Morelle,

Your May 5, 2008 editorial, Clear way for Energy East sale, in the Democratic and Chronicle issue is dead wrong. Obviously you are not aware of the mandate that NYS assigned to the Public Service Commission when utility deregulation took effect. The PSC is mandated to enforce the separation of electric generation from distribution. This clear distinction is at the core why Iberdrola should not be approved to acquire Energy East. Also, Iberdrola is in play for a hostile takeover, which brings serious instability.

Are you aware of the Anti-trust violations cited by the EU against Iberdrola? Please review our testimony at the Rochester PSC hearing 2/21/08 pages 98 - 103.

Iberdrola has stated openly in the press that their real intention is to control industrial wind developments in the Energy East region. It is established beyond any factual doubt that wind generation is vastly more costly than hydro, natural gas, coal and nuclear generation. When coupled with the unreliability of such inconsistent technology, it is clear that the price of electricity will be dramatically increased under an Iberdrola management policy for Energy East.

Your claim that: “$200 million in rate reductions for Energy East customers as part of the terms of Iberdrola's acquisition” is disingenuous. Your assertion that: “$100 million for wind-power generation in upstate, which will greatly assist New York in reaching its goals for the development of clean and renewable energy sources”, obviously vastly underestimates the real costs of billions needed for the 5,000 plus industrial turbine machines that are slated for New York State. Lastly, you are solely deficient in minor role that industrial wind could play since the wind patterns in most parts of the state cannot support electric generation during summer months.

The Citizen Power Alliance has members within your district. Enclosed is a recent letter to Senator Schumer which expands on the negative consequences of an Iberdrola PSC approval for Energy East. Our legislative staff is available to meet with you if you are so disposed to discuss your viewpoint in depth.

Cordially,


James Hall for CPA