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Gov. Cuomo Criticizes Utility Companies

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    Wayne Rogers & Co. Wayne Rogers weighs in on the business model for utility companies.

  • Duration 4:37
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Thank you now here's a question what's the business model for these utility companies why is -- more competition in the industry.

The governor of New York has been absolutely blasting.

The Long Island power authority which still lots of this morning has just -- two -- 200000.

Of its customers who do not have any power after sandy.

The governor says -- -- has failed and failed big time what's this.

These utilities are a monopoly they are basically one -- the last monopolies you know people criticize government and they say it's just -- bureaucratic and it's not accountable.

Government is actually accountable.

At least to this extent.

You can fire the person who runs it they run for re election.

You're unhappy with state government you fire me that's what happens not happy with the city government you fired the mayor.

You're unhappy with the utility company -- -- fire.

When Rogers chairman -- -- -- company joins us now what about this business model for these.

Utilities in this country many if not including like -- don't seem to have an incentive to do better.

Well all due respect of the govern I think he's at slightly off base you know he says.

If you don't like me you can vote me out you could five be well if that were true have the congress would be out you'd have term limits and they would be gone but -- not.

And it's easy for him to -- to -- But you know to criticize the utilities but cause they are they are they're controlled by state -- that the commission's.

-- has had a voice in that.

He could tell them to do certain things he's just he's just picking somebody that he can pick on that he knows the public will pick on -- so he won't be picked.

Don't I actually think you veer from very good point glad to -- that right away because yes deflecting blame is kind of the order of the day any -- a disaster like this happened said.

If the plane's gonna come to -- and a government official you wanna find somebody else that said longer term.

The business model of utilities and the lack of competition in the industry Newsday which is a local paper here New York.

Chatham on Allen wrote a scathing piece about like -- today just saying that there.

Infrastructure just not been updated since by hurricane Gloria which is back in the eighties the last.

Big storm to hit that date.

You know they're using mainframe computer that's like 25 years old to my point is well what's the incentive for them to improved is there a better way.

Than the current way.

There were there rates are controlled by the state utility commissions if they can't get -- raised in -- they can't get enough money to put aside their capital did do make these.

Improvements work.

So it is the government is just is equally to blame is they are they have brought in an extra 5000 workers from out out of state to help them.

I think they're probably doing as good a job is they can -- London.

Though -- restrictions where the -- about the restrictions and it's so what's the better system or is there one -- -- how we want our.

There isn't I want in -- but it and there isn't one when you have eight as you said a public utility because it is by nature a monopoly is -- -- you can't have five people.

Tried to supply you with electricity because.

The grid doesn't work that white.

So you can't have people going up and down right to -- all of that -- this competition with somebody's got lights and somebody else doesn't have that you have to have one parts and run that many public utilities.

Why they -- called public utilities is because they're under the aegis of that.

Government that govern the weather -- city or state or whatever they had hit by big.

And it works it does -- -- not a case you have one disaster it doesn't work everybody jumps on a beat them up -- some you know well.

They designs for example in this area read this it was a storm of his Halloween storm last year you know that's -- came down pretty surprised by it up in Connecticut they lost power for.

-- days and days and -- the Connecticut light and power.

The next day again -- this Newsday article today the next year should say they put some money and and they improve their systems so this time -- said.

Are we're gonna have 98% of the power restored by Monday or Tuesday last week -- -- hit their goal.

And 98% but -- these other utilities like that being the example that the governor's giving.

They haven't made investments.

So so how do you solve that problem the only way to do that is so I guess raise taxes right now have more money coming.

I'm -- a lot of no no no no no I think it comes down to the right in other words that they these rates all spelled out they -- there's a formula form it's not rocket science.

And they have there's certain amount of that right is to go to capital improvement Abraham not allowed to raise that -- -- -- -- -- -- -- like.

That was missed numbers increased -- and it may raise rates and we were gonna have to pay more is your point for electricity -- -- better are correct.

That's the only long term answer Wayne Rogers.

Thanks for your this is always good to have -- -- a --

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