FAQs - Understanding What's On Your Bill

If after browsing our frequently asked questions, you still have a question, feel free to contact us. Call 1-800-490-0025 or 631-755-6000- Monday - Friday: 8:00am to 8:00pm, except holidays.

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

Why did LIPA change how charges are presented on bills?
Changes were made so you can tell the difference between what you are being charged for the cost of purchasing or producing the electricity you use – the power supply charge – and the cost of getting that electricity to you – the delivery and system charge. View an example of the LIPA bill.

What is the Power Supply Charge?
The Power Supply Charge is basically the cost of the electricity LIPA buys from various electric power producers on behalf of its customers. View an example of the LIPA bill.

Does LIPA generate electricity for its customers?
No, LIPA does not own any power plants other than its 18% interest in the Nine Mile 2 nuclear power plant. But, LIPA is responsible for procuring electricity on behalf of its customers. LIPA buys power from various on-island and off-island suppliers. Back to top

What makes up the Power Supply Charge?
In part, the Power Supply (electricity) Charge includes the cost of fuels – petroleum and natural gas – LIPA buys for use at some power plants on Long Island owned by National Grid to produce electricity as part of Long Island’s overall electric supply.

The Power Supply Charge also includes the cost of power bought by LIPA from Independent Power Producers both on and off Long Island – or “Purchased Power”. Back to top

Why does LIPA buy fuel for power plants?
Many of LIPA’s contracts for generating capacity require that LIPA either purchase the fuel used for the production of energy or reimburse the plant owner for such fuels. This form of contract is standard in the industry. Back to top

What is “Purchased Power?”
LIPA does not own generation facilities other than its 18% interest in Nine Mile 2 nuclear power plant. LIPA is, however, required to procure on behalf of its customers the energy and capacity necessary to meet its needs, including an appropriate reserve margin. Back to top

How am I billed for the Power Supply Charge?
Customers are billed for the power supply charge on a per Kilowatt hour (kWh) basis, e.g., a customer using 100 kWh per month will be charged $0.105689 per kWh, or $10.56. Back to top

What are Delivery and System Charges?
Delivery and System Charges are the charges for owning, operating and maintaining the electric (transmission and distribution) system and for certain on-island generation. Back to top

How was the Power Supply Charge determined, and what happened to the fuel price adjustment?
LIPA combined the fuel and purchased power costs contained in the base rates and the Fuel Price Adjustment on your old bill into one charge, the Power Supply Charge, on your new bill.

Specifically, fuel and purchased power costs contained in the base rates ($0.0392 per kWh), and fuel and purchased power costs contained in the Fuel Price Adjustment, ($ 0.066489 per kWh) were combined into the Power Supply Charge of $0.105689 per kWh. Back to top

Did LIPA raise rates?
No. The Delivery and System Charges have been reduced by the same amount that was added to the Fuel Price Adjustment to create the Power Supply Charge. Back to top

Does this change affect the amount I am charged on my bill?
No. The total charges on your bill have not changed. The only thing that has changed is the way the charges are displayed, or broken down, on bills. Back to top

Does this change affect commercial customers enrolled in Long Island Choice?
No. The total charges on LI Choice customer bills have not changed. Customers will no longer see a supply credit on their bills, however, the rates have been adjusted to ensure that the net amount billed to the customer is the same as before. The only thing that has changed is the way the charges are displayed on the bills.  Back to top

Could the Power Supply Charge decrease?
Yes. If fuel prices fall significantly, which in turn would help reduce the cost of the electricity LIPA buys for its customers, the Power Supply Charge could also decrease.

Keep in mind that a variety of fuels are used to produce electricity. The majority of the electricity LIPA buys for its customers is generated using fuel oil and natural gas. When LIPA set its base rates in May, 1998, a barrel of oil was selling for $18 per barrel. The price of a barrel of oil is currently about $70 per barrel. Recently, oil reached an all time high of $75 per barrel. Natural gas has also increased in price well above the 1998 levels. These price increases have increased the cost of producing electricity, and current market forecasts indicate that the price of oil and natural gas will remain high well into the future. Back to top

Could the Power Supply Charge increase?
For the balance of 2006, LIPA will not increase the Power Supply Charge absent a Hurricane Katrina-like storm or an international incident impacting oil and natural gas supplies and prices. Back to top

What are Pilots?
PILOTs are Payments in Lieu of Taxes – Pilots are payments made by LIPA to local taxing jurisdictions such as school districts, in replacement of taxes formerly paid on utility owned property. Back to top

What can I do to reduce my energy costs?
Use electricity as efficiently as possible. By using electricity efficiently all year long and conserving as much as possible during high use periods, such as the summer, it’s possible to reduce electricity consumption by as much as ten to 15 percent and in some cases even more.

LIPA has a wide range of recommendations on how to save money by reducing the amount of electricity used by both residential and commercial customers. Go to our Web site, www.lipower.org, and download LIPA’s 53 Ways to Save Energy brochure to learn more or click here for additional Energy Saving Programs. Back to top

Does LIPA have any programs designed to help me manage my electric account?
Yes. By registering on LIPA's My Account section of our Web site, customers can view billing statements and sign up for e-LERT, LIPA's online bill notification service.

In the My Account section, customers can also view electricity consumption on a month-to-month basis going back two years. Monitoring energy use over a period of time can also assist in making energy saving decisions that will help lower bills.

LIPA also has a number of bill payment options available to assist you. For example, Balanced Billing helps “levelize” monthly payments over a 12-month period to eliminate high seasonal bills.

Customers can also enroll in Direct Pay, a program that automatically deducts your electric bill payment from your checking or savings account. Enroll online or call the Customer Assistance Center at 1-800-490-0025 for more information and assistance. Back to top

Last Updated: 11/02/2009