New York State and town officials are renewing their calls for changes to be made to Long Island Power Authority’s operations as the trial over the tax-assessed value of Northport Power Station is slated to begin Feb. 25.
State Sen. Jim Gaughran (D-Northport) reintroduced legislation Jan. 31 that called for LIPA to be restructured so that eight of the utility company’s nine board members would be elected by public vote, among other changes.
“I don’t believe LIPA’s board as it exists offers any protection to the citizens of Long Island,” he said. “I think it needs to be scrapped and replaced.”
““I don’t believe LIPA’s board as it exists offers any protection to the citizens of Long Island.”
— Jim Gaughran
Assemblyman Fred Thiele Jr. (D-Sag Harbor) has partnered with Gaughran to sponsor the bill in the state Assembly. The concept of the ratepayers protection act was first introduced in February 2017 by Sen. Ken LaValle (R-Port Jefferson) and Thiele, co-sponsored by a coalition that included state Assemblyman Andrew Raia (R-East Northport). Those early bills failed to ever make it the Legislature’s floor for a vote.
Currently, LIPA’s nine-member board of trustees consists of five individuals appointed by the governor, two selected by the president or majority leader of the state Senate, and two chosen by the speaker of the Assembly.
The proposed ratepayers protection act calls for the state Legislature to create eight districts roughly equal in population size based on the last U.S. Census by May 1, 2021. A resident of each district would be elected to LIPA’s board to serve a two-year term as trustee, with the first elections to be held in December 2021. Candidates on the ballot would not be chosen by the political parties, and those elected would not be paid but could be reimbursed from the state for their related expenses, according to the draft.
In addition, the proposed legislation would require LIPA to hold public hearings before making future rate changes, give residents 30 days advance notice of the hearing and hold the event in the county it affects — Suffolk or Nassau. It would prohibit the utility company from increasing its rates to offset any losses from energy conservation efforts.
“I promised the residents of his district once elected, I was going to hold one of my first town halls on this — a town hall in Northport to drill down and deal with the issues of LIPA,” Gaughran said.
He will hold a town hall-style forum 10 a.m. March 16 in Northport High School’s auditorium with town and school district officials present to answer questions and review various options moving forward with LIPA, including the ratepayers protection act.
“We are encouraged to hear this legislation is being reintroduced, as it will provide the oversight and transparency needed to restore residents’ confidence in LIPA — ensuring that the best interests of the ratepayers are served,” Huntington spokeswoman Lauren Lembo said.
Huntington’s town board also voted unanimously Jan. 29 to petition its elected officials to amend state law to allow the Town of Huntington and Northport-East Northport school district access to the state’s Electric Generating Facility Cessation Mitigation Program funding in case LIPA is successful in getting the Northport power plant’s annual taxes reduced, as well as to put more money into that state fund. This bill also failed to find sufficient support to pass the state Legislature last year.
“We’ve reviewed the Brookhaven settlement and found it to be irrelevant to our case.”
— Nick Ciappetta
The tax certiorari case is slated to begin trial Feb. 25. While the town and Northport school district have entered nonbinding mediation with five sessions being held to date, according to Lembo, an agreement has not been struck.
In contrast, the Town of Brookhaven formally settled its lawsuit with LIPA over the Port Jefferson power plant Dec. 14 agreeing to decrease taxes on the plant 50 percent incrementally over the next nine years.
“We’ve reviewed the Brookhaven settlement and found it to be irrelevant to our case,” Huntington Town Attorney Nick Ciappetta said. “The Brookhaven agreement has nothing to do with the Northport power plant.”
Ciappetta cited what he believes are several key differences between the Northport and Port Jeff stations: Northport’s output capacity is four times larger, it is a dual-fuel plant that is capable of operating on both natural gas and oil, and that its operation is vital to helping maintain the state’s power capacity requirements.
Gaughran said he is willing to review and support any state legislation which may aid Huntington and Northport in their ongoing legal battle with LIPA and National Grid.
“It’s clear that everyone has to continue to fight this,” he said. “We can’t be preparing to lose. Everyone must continue to fight — it’s too important.”