Fact-Check: Maffei Slightly Over-Optimistic For Wind-Power Jobs

Share

The statements:

On his Web site, Democratic congressional candidate Dan Maffei praises the Spanish energy company Iberdrola as an example of a creator of new, high-quality jobs for Central New York.

Title: “My Job Creation Plan” and “Candidates take starkly different views on investment and job loss in Central New York.”
From: Dan Maffei for Congress Web site
Maffei is a Democrat running for New York’s 25th Congressional District. His opponents are Republican Dale Sweetland and Green Populist Party candidate Howie Hawkins. They are running to succeed Republican Jim Walsh, who is retiring.
Type: Campaign platform and blog entry
Date: July 22, 2008 and Sept. 17, 2008
URL: http://www.maffeiforcongress.com/Issues/MyJobCreationPlan and http://www.maffeiforcongress.com/news/detail.aspx?id=173&cat=4.

What it says:

Iberdrola is a Spain-based utility company that recently expanded to the United States. In summer 2008, Iberdrola was in negotiations with the New York Public Service Commission to buy Energy East, the parent company of two gas and electric utilities in New York.

Maffei first praised Iberdrola in his three-part economic policy, released in July. Maffei supported Iberdrola’s interest in wind energy as an example of green industries that could create jobs in the area.

After Iberdrola and the state struck a deal for $4.6 billion on Sept. 3, Maffei praised the agreement in a post on his Web log. Maffei criticized Republican opponent Dale Sweetland, saying that if elected Sweetland would discourage foreign companies from developing industry in the United States. The Iberdrola agreement is an example of foreign companies investing in American jobs, Maffei said.

From his job-creation platform:

“Instead of old ideas, let’s start to think in a new direction to leverage our region’s assets to create new green jobs. Dan Maffei supports companies such as the energy firm Iberdrola, which wants invest $2 billion over five years in our region to build and operate wind power turbines. We need to encourage this kind of investment, from foreign and domestic firms alike. Investment that brings quality jobs to the area and reduces our dependence on foreign fuel is innovative, forward looking and will lead our new economy.”

From his sept. 17 web log:

“Dale Sweetland does not seem to understand the difference between jobs going overseas and foreign companies investing in American industry and jobs. Dale Sweetland just doesn’t get it. The Iberdrola deal is an historic investment in alternative energy in Upstate New York, will create hundreds of new jobs and will save rate payers on the utility bill.”

The facts:

  • “Iberdrola wants (to) invest $2 billion over five years in our region to build and operate wind power turbines.”

This statement is misleading in its implication that the $2 billion would be invested in Central New York.

The $2-billion figure was first cited in a New York Times story in June. It referred to building windmills and turbines all across New York — not just “in our region,” as Maffei says.

Since that was published, Iberdrola has reached a new agreement with the state’s Public Service Commission. That agreement allows Iberdrola to buy Energy East for $4.6 billion, so long as Iberdrola spends $200 million in developing wind energy in New York in the next two years.

Jan Johnson is communications director for subsidiary Iberdrola Renewables, headquartered in Portland, Ore. The $2 billion figure was likely drawn from an estimate of the total investment in wind energy if Iberdrola were to tap New York’s wind energy potential, Johnson said in a telephone interview.

For Maffei’s part, he stands by his praise for Iberdrola, says his campaign spokeswoman, Abigail Gardner. He was not intentionally misleading in suggesting the whole $2-billion investment would come to Central New York, she said. Maffei was not specifying any region for the job creations, she added.

Maffei read about Iberdrola’s plans in news accounts, said Gardner. He welcomed the potential investment, she said, as a way to create “green-collar” jobs in Upstate New York.

  • “The Iberdrola deal…will create hundreds of new jobs.”

This statement is an estimate, but the Maffei campaign did not provide any details about the potential jobs.

It’s a “fair assumption” that the Iberdrola deal will create hundreds of new jobs, spokeswoman Gardner said. Maffei was not specifying any region for the job creations, she added.

Johnson, the Iberdrola spokeswoman, could not say immediately how many jobs would be created in New York. But many of the jobs would be in construction, Johnson said. Those jobs are temporary.

Conclusion:

Maffei’s praise of the Spanish company Iberdrola buying Energy East slightly overstates the potential benefits of job creation for Central New York and incorrectly implies the whole $2-billion investment would come to the region.

(Ed Jacovino is a senior with dual majors in newspaper journalism and anthropology.)

– 30-

This entry was posted in Fall 2008, No Feature. Bookmark the permalink.