PSC Review of LIPA Rates Possible
By Mark Harrington, Newsday, Melville, N.Y.
Feb. 9–A long-awaited state review of the Long Island Power Authority’s rates and controversial fuel surcharges may be back on the table after newly appointed LIPA chairman Kevin Law directed top deputies to revisit the issue last week.
“I want to see a compelling reason why we shouldn’t go [back] to the Public Service Commission,” Law said in an interview yesterday, adding he plans to discuss the matter with newly appointed PSC chairwoman Angela M. Sparks-Beddoe in coming weeks.
Last year, the PSC under then-chairman William Flynn declined to conduct the widely requested review, saying the PSC didn’t have the statutory authority. But critics charged that LIPA formatted the request in a way that left the PSC little choice but to reject it. Law said he’s approaching the matter with a clean slate.
Last week, Law directed LIPA general counsel Stanley Klimberg and chief financial officer Elizabeth McCarthy to report back to him on any possible downside to a PSC rate review, including possible implications on LIPA’s debt rating. He expects to broach the matter at a LIPA trustee meeting next month, he said.
Critics, legislators and a broad cross-section of ratepayers, have pushed hard for a review after LIPA’s fuel surcharges ballooned to more than a third of the average customer’s bills in 2005. LIPA last year changed the format of its bills to eliminate the term surcharge and to reclassify some costs so that its base rate declined. Doing so allowed the utility to skirt a rate review. LIPA under then-chairman Richard Kessel said the bills were changed to conform with those of other utilities in the state, and Kessel, now chief executive and president, has maintained that LIPA’s rates and surcharges were proper.
Those who had been pushing for a review hailed Law’s efforts. “I think it’s about time we had someone at LIPA who is willing to make themselves more accountable to the Long Island ratepayer,” said Assemb. Marc Alessi (D-Manor Park), who had petitioned the PSC to re-examine its refusal.
Separately, Law said he plans to examine LIPA’s spending on outside law firms and lobbyists, to work closely with newly named state Comptroller Thomas DiNapoli and Attorney General Andrew Cuomo, and to encourage more participation in LIPA public proceedings. On that last goal, Law said he is examining plans to conduct live video streaming of LIPA trustee meetings and public hearings on the Internet.
Law also said he would look to use existing state resources to contend with lawsuits filed against LIPA, rather than relying as heavily as LIPA has in the past on costly outside law firms.
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Copyright (c) 2007, Newsday, Melville, N.Y.
Distributed by McClatchy-Tribune Business News.
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