ANOTHER LIPA SUPRISE: RATE INCREASE


Today LIPA announced that it was increasing rates $3 per month for the average customer to recover higher than expected fuel costs. Normally, under LIPA’s new policy to review fuel costs on a quarterly basis, this would be fair but under current circumstances it is not.
 
If this policy was in place previously it might have protected customers from serious overcharges on fuel costs, unfortunately it was not. As such, when combined with $231 million in overcharges due to unaccounted losses, LIPA now owes the customer something north of $400 million.
 
On this basis you would think that LIPA could accelerate the over $400 million in refunds they are now dribbling back to the customer and eliminate the need for this latest fuel adjustment. The problem is, however, LIPA’s current financial condition cannot support this.
 
The $200 million cost for Irene, along with all of its other obligations and the timing of potential FEMA reimbursements does not provide LIPA the flexibility it needs to cover its bills. So you guessed it, the customer is on the hook again as always.

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About lipaoversight

LIPA Oversight Committee was created to analyze the rates and practices to determine if it is working in the best interests of the Suffolk County ratepayers
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One Response to ANOTHER LIPA SUPRISE: RATE INCREASE

  1. Rob from LI says:

    This is better than LILCO in what way?

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