FAQs - Power Supply Bill Credit - Oct/Nov 2009

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My Account | Proposed Budget | Power Supply Credit | Your Electric Bill | Electric Service

What is the Power Supply credit that LIPA is providing for its customers?
LIPA is providing a one-time credit for a portion of the Power Supply Charges collected for your electric usage during the first seven months of 2009. This credit is being provided because actual Power Supply expenses were lower than originally forecast.

How much is the Power Supply credit for?
It is dependent on the amount of electricity you used during the period, calculated at a rate of 1.3˘ per kWh. BACK TO TOP

How will I know I received a Power Supply credit?
There will be a separate line item on the first page of your bill entitled “Power Supply Credit” and it will show you the specific credit you received. BACK TO TOP

When will the Power Supply Credit appear on my bill?
The Power Supply Credit will appear on the bill for your October or November usage, depending on how and when you are billed. For those relatively few customers that do not receive a bill every month, the credit will be posted to your account in late October or early November and will appear on the next bill you receive. BACK TO TOP

I recently moved or closed my account. Will I receive a Power Supply credit?
No. The credit is being applied to active electric accounts in the designated October/November billing cycles. BACK TO TOP

My rent includes the cost of electricity. Am I eligible for a Power Supply credit?
No. The credit is being applied to LIPA customers with active electric accounts in the designated October/November billing cycle. BACK TO TOP

My account is currently in arrears. Will I still receive a Power Supply credit?
Yes. The credit will be applied to your account balance. BACK TO TOP

Are all customers receiving the same credit?
The same rate is being used to calculate the credit for all eligible customers, however the amount of the credit will be determined based on each eligible customer’s usage. BACK TO TOP

How was the credit calculated?
The refund of $144 million was divided by customer energy usage of 11,002 GWhs between January 1st and July 31st to produce a rate of approximately 1.3˘ per kWh. That rate times your energy consumption used between January and the end of July will determine the amount of your credit. BACK TO TOP

Will unmetered service classes also receive the Power Supply credit?
All unmetered service classes that pay the Power Supply Charge, such as Street Lighting and Private Area Lighting, will receive the Power Supply credit. The credit will be based on the same energy usage used to calculate the Power Supply Charge. BACK TO TOP

How will the Power Supply credit affect my Balanced Billing Payment?
For the bill which includes the one-time Power Supply credit, you can pay us the lower amount shown on your bill for that month. That way, you can get the benefit of the Power Supply Credit immediately. The next month, the amount you have to pay will return to your balanced billing amount. BACK TO TOP

Will the Power Supply credit include the portion of the sales taxes that I paid on my LIPA bill that is now being refunded?
Yes. The Power Supply credit that will appear on your bill will reflect the reduction in power supply charges and reduction in applicable taxes related to those power supply charges. The tax rates are applied specifically for your account, based on where you reside and your type of service (residential or non-residential). BACK TO TOP

Long Island Choice Customers

Will Long Island Choice Customers receive the bill credit?
No. Long Island Choice customers do not pay the Power Supply Charge, so they will not receive the Power Supply credit. BACK TO TOP

Don’t Long Island Choice customers pay 3.92˘/kWh towards the Power Supply Charge?
LIPA receives no Power Supply revenue from the Long Island Choice participants. The 3.92˘/kWh that is mentioned in the LIPA tariff leaf 313 is offset by the Bill Credits that customers receive on their bills for participating in the Long Island Choice program. The net result is that Long Island Choice participants only pay LIPA for delivery service, and they pay their ESCOs for their entire supply of electricity. BACK TO TOP

Will Long Island Choice ESCOs receive the Power Supply Credit?
Yes. Long Island Choice ESCOs do pay the Power Supply Charge, so they will receive the Power Supply Credit. The credit will appear on their December 2009 invoice. December is the earliest month that the final energy usage (“Closeout MWHs”) are available for the entire period from January 1 through July 31, 2009. BACK TO TOP

Why do Long Island Choice ESCOs receive the Power Supply Credit, and not the Long Island Choice customers?
Because LI Choice ESCOs pay the Power Supply Charge and LI Choice customers do not.

Does my ESCO owe me a credit, since they received the bill credit from LIPA?
That depends on your contract with your ESCO. Please contact your ESCO to address that question. Since LIPA is not involved with the arrangement between you and your ESCO, and since we don’t have a copy of your agreement with the ESCO, we cannot comment on your particular situation. BACK TO TOP

 

Last Updated: 11/02/2009