Romaine: LIPA oversight committee to probe $231 million overcharge

FIRST LIPA OVERSIGHT COMMITTEE TO BE HELD MARCH 2nd;
$231M overcharge to be at the top of the agenda

Suffolk County Legislator Ed Romaine today announced that the first meeting of the recently created Long Island Power Authority Legislative Oversight Committee will be held on Wednesday, March 2, 2010 at 4pm at the William H. Rogers Building in Hauppauge. At the top of the agenda will be the recent revelation that LIPA overcharged ratepayers $231 million over the past several years.

“Every time we turn around there is another anti-ratepayer announcement coming out of LIPA,” said Romaine. “The disclosure of a massive overcharging of ratepayers is the exact reason we created this committee. LIPA needs oversight.”

The committee consists of former LILCO employees Peter Schlussler and Matthew Cordaro; energy experts Irving Like and Sheldon Sackstein; civic leader Fred Gorman; and the county legislature’s energy specialist, Joe Schroeder.

Established late last year pursuant to Local Law No. 36-1999, the Long Island Power Authority Legislative Oversight Committee will look at LIPA’s rates – specifically its standard rates, variable rates, and peak/off-peak rates – contracts, practices, and disaster and storm response policies to determine if the agency is working in the best interests of the Suffolk County ratepayers.

Besides the $231 million overcharge, the committee will focus on the so-called “Green Choice” program, which purports to provide ratepayers with the opportunity to purchase renewable resources; LIPA’s three different rate plans, which could potentially save many ratepayers money on their bills; LIPA’s poor response to severe storms last March, which left hundreds without power for days; and the hefty $40 million-plus incurred for standby costs preceding Hurricane Earl, which never came close to making landfall on Long Island.

The committee will hold at least four public hearings, two in the west end and two on the East End and issue a written report before the end of 2011.