LIPA fallout coming
We get it — if you read our newspapers or just about any other media that cover Long Island, you’ve heard enough over the past decade about the legal battles going on between several school districts and townships versus Long Island Power Authority.
If you feel like you’re on LIPA overload, we have some significant news — a major development occurred in the cases last week. A New York State Supreme Court judge determined that the 1997 Power Supply Agreement between National Grid, which owns the power plants, and LIPA, which transmits that electricity to customers, did not contain any language, or “promise,” that prevented the utility companies from seeking to have taxes they pay on the power stations reduced.
The good news is this decision may signal there’s a light at the end of the tunnel to this endlessly drawn-out court battle. We fear the positives may end there.
LIPA has said that its intention in filing these lawsuits is to be able to reduce energy bills for its customers, as it hopes to pay out less in property taxes. On its face, the company’s goal appears to a good thing for residents of Huntington and Brookhaven townships, who will likely see a reduction in their monthly electrical bills should LIPA be victorious, except for the residents in Northport and Port Jefferson, who will see a property tax increase. These odds seem an increasingly likely fact in recent weeks as courts have ruled twice in LIPA’s favor.
However, these legal battles have been waged for nearly a decade, racking up what we can only imagine are substantial legal bills from lawyers hired to represent the municipalities and the school districts involved. Then adding in fees paid for a third-party mediator when sit-downs begin in September, we find ourselves asking, “At what cost?”
We hope to find out just how much taxpayers’ money has been spent on legal fees for the duration of the saga, so keep an eye out for that. And for what? The “Hail Mary” play that a court would determine the 1997 PSA had implied a legally binding promise that LIPA wouldn’t seek a reduction in its property taxes.
It was such a risky play for Brookhaven Town and Port Jefferson Village that those two municipalities have agreed to settle the cases out of court to avoid exposure to the risk of years of back pay should the issue actually end up in a trial loss for the two entities. Still, why did it take Brookhaven and Port Jeff until 2018 to finally reach a settlement while legal fees kept accruing?
All of this can also be looked at against the backdrop that New York Gov. Andrew Cuomo (D) has set a goal for 50 percent of the state’s energy to come from renewable sources by 2030. Who’s going to pay for the solar and wind producing plants necessary, for example, to get on track in reaching that goal? We don’t think we’re going out on a limb in speculating that at least some of that cost will fall on LIPA’s customers.
While we’d like to think we’re inching closer to a day when we no longer have to report on legal issues pertaining to LIPA, a positive resolution for all stakeholders is going to take significantly more work. In reality, it should have been resolved long ago.
