FOR IMMEDIATE RELEASE
September 24, 1999
CONTACT:
Media Relations
516 - 222 - 7700


Statement by the Long Island Power Authority
In Response to Suffolk County Legislature's Assertion
Of Hidden Surcharge in LIPA Electric Rates

Uniondale, NY-September 24, 1999

There is no hidden surcharge in LIPA's electric rates in Suffolk County.

The assertions being made by some members of the Suffolk Legislature are inaccurate.

Last year, LIPA lowered electric rates in Suffolk County by 19.1%.

At the same time, electric rates were lowered in Nassau County and the Rockaway Peninsula in Queens by 20.9%.

The average Islandwide rate reduction was 20%, which is now in its second year.

The rate differential of 1.8% was announced more than a year and a half ago. The Suffolk Legislature was aware of the differential at that time.

The rate differential exists because Suffolk County and Brookhaven Town systematically overassessed the Shoreham power plant for years.

In 1996, the Courts awarded LILCO a judgement that is now worth more than $1.4 billion for the repayment of those overassessments.

LIPA now owns that judgement and is seeking to settle it for $625 million and return the money to electric ratepayers.

The same Suffolk Legislature that fought the electric rate reductions that LIPA customers now enjoy has refused to approve the $625 million settlement.

By refusing to agree to the $625 million settlement that LIPA has offered the Suffolk Legislature, the Courts may force Suffolk to repay the entire $1.4 billion in overassessments.

LIPA devised the rate differential when it implemented its historic electric rate reductions as a painless way to repay the overassessments, and return the money to electric ratepayers on Long Island, without property taxes having to be raised in Suffolk County, the Town of Brookhaven, or the Shoreham Wading River School District.

While LIPA is still seeking to settle the matter for $625 million, which is less than half the amount now due, the Courts may determine in the near future that Suffolk will have to repay the full $1.4 billion.

The Suffolk Legislature's failure to agree with LIPA's generous offer, which has been on the table for over two years, may have a significant and adverse impact on property taxes in Suffolk County.

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