DiNapoli: NYPA overstated jobs retained in ReCharge NY program “by nearly 30,000”

ALBANY, N.Y. — The New York Power Authority (NYPA) “overstated” the number of jobs retained under the ReCharge NY (RNY) program by nearly 30,000 in public reporting.

NYPA made errors and overrode applicant scores when it distributed low-cost power to companies, according to an audit that State Comptroller Thomas DiNapoli released this week.

Auditors were also critical of NYPA’s efforts to monitor whether customers met job targets.

The Authority allowed 12 customers, who refused to provide payroll information, to self-certify or provide alternative data which provided “limited assurance” that they met promised job targets.

“The New York Power Authority grants low-cost power to hundreds of businesses and [nonprofits], but its methods for determining eligibility were not implemented consistently and contained errors, giving some applicants advantages over others with higher scores,” DiNapoli said in the release. “NYPA also needs to hold all customers to the same rules when verifying job promises and accurately report this information to taxpayers. NYPA has already acted on some of the auditors’ recommendations, but needs to do more. NYPA should take the measured steps recommended by our auditors to improve operations.”

Despite the overstated jobs numbers, auditors found that NYPA’s energy-efficiency program was, overall, “relatively well-run.”

NYPA officials disputed the auditors’ findings, even though they were given “multiple opportunities to weigh in” on the auditors’ conclusions.

NYPA response
DiNapoli’s audit report includes a multi-page response from NYPA to the audit, including this paragraph from the opening page:

“The [Office of State Comptroller’s] (OSC’s) draft audit makes significant errors in analysis, and recommends actions that NYPA is already undertaking.

Regarding NYPA’s ReCharge New York program, the OSC recommends independent and objective review of applicant scoring, omitting that NYPA already provides effective controls. The OSC further reaches conclusions about the RNY program based on outdated statistics in improper interpretations of data NYPA provided to the OSC.

OSC reaches these conclusions without having given NYPA management the opportunity to comment during the audit on a number of its conclusions. This resulted in flawed recommendations on the RNY program. Similarly flawed reasoning led to equally erroneous conclusions and recommendations for NYPA’s personal property disposal, and energy efficiency programs.”

About the NYPA audit
Under state law, the state comptroller is required to conduct an audit of NYPA’s management and operations every five years.

The office released the last audit in 2011.

In the audit released this week, auditors examined ReCharge NY, the disposition of personal property, and the energy-efficiency program.

While the audit period varied for each area examined, the timeframe for the largest program area, ReCharge NY was April 2011 to January 2016, DiNapoli’s office said.

Since 2012, NYPA has allocated power through ReCharge NY to businesses and nonprofits that agreed to retain or create jobs in New York and to make capital investments.

Businesses and nonprofits must apply to the program, and applications are scored based on 12 criteria for job retention or business expansion.

Overall, NYPA has 910 megawatts (MW) of power it can allocate statewide for economic development.

Half the power comes from hydropower, while NYPA purchases the remaining 50 percent on the open market, according to DiNapoli’s office.

Contact Reinhardt at ereinhardt@cnybj.com