Richard Kessel
Encyclopedia
Richard M. Kessel is a power industry executive who was formerly President and Chief Executive Officer of the New York Power Authority
, the largest state-owned public utility company in the United States. Kessel started as a consumer advocate who led the opposition to the construction and operation of the Shoreham Nuclear Power Plant
constructed by the Long Island Lighting Company
(LILCO). He was appointed as chief executive and later chairman of the Long Island Power Authority
(LIPA), which oversaw the public takeover of LILCO in 1998 and the decommissioning of the Shoreham plant. Kessel has been variously described by The New York Times
as someone who started out as a "constant noodge, attacking perceived wrongs and demanding changes" who later became an "exuberant executive with a hands-on approach".
He served as the Executive Director of the New York State Consumer Protection Board
from 1983 to 1995, where he negotiated rate freeze agreements with Consolidated Edison
, Niagara Mohawk and other electric and telephone utilities, which Kessel estimated saved consumers $1 billion.
In 1989, Kessel was appointed by then-Governor Mario Cuomo
to become the chairman of the Long Island Power Authority. He led the negotiations on the decommissioning of the Shoreham nuclear power plant, which had been constructed at a total cost of $5.5 billion and had never generated any commercial power. In February 1992, he handed over a $1 bill to purchase the Shoreham facility from the Long Island Lighting Company and oversaw its decommissioning and the shipment of its nuclear fuel off of Long Island
. He left his spot as chairman in 1995 and remained as a trustee of LIPA, returning to the chairmanship in 1997 when he was reappointed by then-Governor George Pataki
.
He was responsible for the LIPA's May 1998 takeover of LILCO, funded by a $7 billion offering in municipal bonds, then the largest sale of such bonds in the United States. Upon the takeover, LIPA cut rates for electricity by 20%, followed by refund checks of $101 to each Suffolk customer and $232 to each customer in Nassau and the portions of Queens
served by LILCO.
He was able to achieve reductions in what had been some of the highest rates for electric power in the country.
In 2003, an audit by the New York State Controller criticized LIPA and Kessel for spending more than $45,000 to conduct improper political polls, and for paying more than $500,000 over 14 months to a single no-bid contracted employee.
Kessel was the target of an investigation by the New York State Office of the Inspector General for accepting separate salaries at LIPA for his roles as both chairman and president. In July 2008, the Inspector General ruled that he had not acted improperly, noting that he had been asked by Governor Pataki to stay on as chairman through 2006, that he had raised the issue that the Public Authorities Accountability Act prohibited him from being paid a salary as chairman and that he had received two written legal opinions that supported the position that a full-time chairman could be compensated.
On January 24, 2007, then-Governor Eliot Spitzer
announced that Kevin Law would replace Kessel as Chairman of LIPA until the fall when a new Chairman would be named and Law would become Chief Executive Officer of LIPA.
In September 2008, Kessel was selected to become the President and Chief Executive Officer of the New York Power Authority
, which operates 18 power-generating facilities across New York State. Kessel succeeds Roger B. Kelley, who had been forced out by Governor David Paterson
in June 2008, and will take office as of October 14, 2008.
While lauded for his frequent visits upstate, State Senators Joseph Griffo
and George D. Maziarz
have criticized Kessel's costly travel on the Power Authority's private plane. Griffo has called on the State Inspector General to investigate the propriety of Kessel's travel.
One of Kessel's first acts at the Power Authority was to remove or eliminate most of the positions that provided oversight of the Executive Offices. Throughout his tenure, and during a hiring freeze for state agencies, Kessel installed friends, neighbors, and political allies into positions throughout the Authority. Often, these positions were newly created or had been recently vacated at they urging of Kessel's staff. Several regional newspapers and websites made these events regular news fodder.
Kessel resigned from the New York Power Authority effective Sept. 6, 2011, an event facilitated by the election of Gov. Andrew M. Cuomo.
Kessel has been a resident of Merrick
, in Nassau County, New York
. He graduated with a bachelor's degree from New York University
and was awarded a master's degree in political science at Columbia University
. He has taught consumer issues at both Brooklyn College
and Five Towns College
.
New York Power Authority
The New York Power Authority , officially the Power Authority of the State of New York , is a New York State public benefit corporation and the largest state-owned power organization in the United States. NYPA provides some of the lowest-cost electricity in New York State, operating 17 generating...
, the largest state-owned public utility company in the United States. Kessel started as a consumer advocate who led the opposition to the construction and operation of the Shoreham Nuclear Power Plant
Shoreham Nuclear Power Plant
The Shoreham Nuclear Power Plant was a completed General Electric nuclear boiling water reactor located adjacent to the Wading River in East Shoreham, New York...
constructed by the Long Island Lighting Company
Long Island Lighting Company
The Long Island Lighting Company, or LILCO [ "lil-co" ], was an electrical power company and natural gas utility for the communities of Long Island, New York, serving 2.7 million people in Nassau, Suffolk and Queens Counties....
(LILCO). He was appointed as chief executive and later chairman of the Long Island Power Authority
Long Island Power Authority
The Long Island Power Authority or LIPA [ "lie-pah" ], a municipal subdivision of the State of New York, was created under the Long Island Power Act of 1985 to acquire the Long Island Lighting Company 's assets and securities...
(LIPA), which oversaw the public takeover of LILCO in 1998 and the decommissioning of the Shoreham plant. Kessel has been variously described by The New York Times
The New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...
as someone who started out as a "constant noodge, attacking perceived wrongs and demanding changes" who later became an "exuberant executive with a hands-on approach".
He served as the Executive Director of the New York State Consumer Protection Board
New York State Consumer Protection Board
The New York State Consumer Protection Board is a government agency of the State of New York that is responsible to "protect, educate and represent consumers". , the Chairperson and Executive Director of the Consumer Protection Board is Mindy A...
from 1983 to 1995, where he negotiated rate freeze agreements with Consolidated Edison
Consolidated Edison
Consolidated Edison, Inc. is one of the largest investor-owned energy companies in the United States, with approximately $14 billion in annual revenues and $36 billion in assets...
, Niagara Mohawk and other electric and telephone utilities, which Kessel estimated saved consumers $1 billion.
In 1989, Kessel was appointed by then-Governor Mario Cuomo
Mario Cuomo
Mario Matthew Cuomo served as the 52nd Governor of New York from 1983 to 1994, and is the father of Andrew Cuomo, the current governor of New York.-Early life:...
to become the chairman of the Long Island Power Authority. He led the negotiations on the decommissioning of the Shoreham nuclear power plant, which had been constructed at a total cost of $5.5 billion and had never generated any commercial power. In February 1992, he handed over a $1 bill to purchase the Shoreham facility from the Long Island Lighting Company and oversaw its decommissioning and the shipment of its nuclear fuel off of Long Island
Long Island
Long Island is an island located in the southeast part of the U.S. state of New York, just east of Manhattan. Stretching northeast into the Atlantic Ocean, Long Island contains four counties, two of which are boroughs of New York City , and two of which are mainly suburban...
. He left his spot as chairman in 1995 and remained as a trustee of LIPA, returning to the chairmanship in 1997 when he was reappointed by then-Governor George Pataki
George Pataki
George Elmer Pataki is an American politician who was the 53rd Governor of New York. A member of the Republican Party, Pataki served three consecutive four-year terms from January 1, 1995 until December 31, 2006.- Early life :...
.
He was responsible for the LIPA's May 1998 takeover of LILCO, funded by a $7 billion offering in municipal bonds, then the largest sale of such bonds in the United States. Upon the takeover, LIPA cut rates for electricity by 20%, followed by refund checks of $101 to each Suffolk customer and $232 to each customer in Nassau and the portions of Queens
Queens
Queens is the easternmost of the five boroughs of New York City. The largest borough in area and the second-largest in population, it is coextensive with Queens County, an administrative division of New York state, in the United States....
served by LILCO.
He was able to achieve reductions in what had been some of the highest rates for electric power in the country.
In 2003, an audit by the New York State Controller criticized LIPA and Kessel for spending more than $45,000 to conduct improper political polls, and for paying more than $500,000 over 14 months to a single no-bid contracted employee.
Kessel was the target of an investigation by the New York State Office of the Inspector General for accepting separate salaries at LIPA for his roles as both chairman and president. In July 2008, the Inspector General ruled that he had not acted improperly, noting that he had been asked by Governor Pataki to stay on as chairman through 2006, that he had raised the issue that the Public Authorities Accountability Act prohibited him from being paid a salary as chairman and that he had received two written legal opinions that supported the position that a full-time chairman could be compensated.
On January 24, 2007, then-Governor Eliot Spitzer
Eliot Spitzer
Eliot Laurence Spitzer is an American lawyer, former Democratic Party politician, and political commentator. He was the co-host of In the Arena, a talk-show and punditry forum broadcast on CNN until CNN cancelled his show in July of 2011...
announced that Kevin Law would replace Kessel as Chairman of LIPA until the fall when a new Chairman would be named and Law would become Chief Executive Officer of LIPA.
In September 2008, Kessel was selected to become the President and Chief Executive Officer of the New York Power Authority
New York Power Authority
The New York Power Authority , officially the Power Authority of the State of New York , is a New York State public benefit corporation and the largest state-owned power organization in the United States. NYPA provides some of the lowest-cost electricity in New York State, operating 17 generating...
, which operates 18 power-generating facilities across New York State. Kessel succeeds Roger B. Kelley, who had been forced out by Governor David Paterson
David Paterson
David Alexander Paterson is an American politician who served as the 55th Governor of New York, from 2008 to 2010. During his tenure he was the first governor of New York of African American heritage and also the second legally blind governor of any U.S. state after Bob C. Riley, who was Acting...
in June 2008, and will take office as of October 14, 2008.
While lauded for his frequent visits upstate, State Senators Joseph Griffo
Joseph Griffo
Joseph A. “Joe” Griffo of Rome, New York is currently a New York State Senator representing the 47th district. The 47th district encompasses all of Lewis County, most of Oneida County, and St. Lawrence County.-Early life:...
and George D. Maziarz
George D. Maziarz
George D. Maziarz is a Republican politician from New York State. He currently represents the 62nd District in the New York State Senate, which includes Niagara County , all of Orleans County, and the western portion of Monroe County.-Biography:Maziarz is a native of North Tonawanda, New York,...
have criticized Kessel's costly travel on the Power Authority's private plane. Griffo has called on the State Inspector General to investigate the propriety of Kessel's travel.
One of Kessel's first acts at the Power Authority was to remove or eliminate most of the positions that provided oversight of the Executive Offices. Throughout his tenure, and during a hiring freeze for state agencies, Kessel installed friends, neighbors, and political allies into positions throughout the Authority. Often, these positions were newly created or had been recently vacated at they urging of Kessel's staff. Several regional newspapers and websites made these events regular news fodder.
Kessel resigned from the New York Power Authority effective Sept. 6, 2011, an event facilitated by the election of Gov. Andrew M. Cuomo.
Kessel has been a resident of Merrick
Merrick, New York
Merrick is a hamlet in the Town of Hempstead in Nassau County, New York, USA. As of the 2010 census, the CDP population was 22,097. The name "Merrick" is taken from Meroke, the name of the Algonquian tribe formerly indigenous to the area...
, in Nassau County, New York
Nassau County, New York
Nassau County is a suburban county on Long Island, east of New York City in the U.S. state of New York, within the New York Metropolitan Area. As of the 2010 census, the population was 1,339,532...
. He graduated with a bachelor's degree from New York University
New York University
New York University is a private, nonsectarian research university based in New York City. NYU's main campus is situated in the Greenwich Village section of Manhattan...
and was awarded a master's degree in political science at Columbia University
Columbia University
Columbia University in the City of New York is a private, Ivy League university in Manhattan, New York City. Columbia is the oldest institution of higher learning in the state of New York, the fifth oldest in the United States, and one of the country's nine Colonial Colleges founded before the...
. He has taught consumer issues at both Brooklyn College
Brooklyn College
Brooklyn College is a senior college of the City University of New York, located in Brooklyn, New York, United States.Established in 1930 by the New York City Board of Higher Education, the College had its beginnings as the Downtown Brooklyn branches of Hunter College and the City College of New...
and Five Towns College
Five Towns College
Five Towns College is a for-profit institution of higher learning located in Dix Hills, Long Island, New York . Founded as a business school in 1972 by Stanley G. Cohen, Ed.D...
.