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Northport Power Plant

Danielle DeSimone

By Donna Deedy

When Samantha Marill stepped up to the microphone at a town hall meeting March 16 in the Northport High School auditorium, the crowd of more than 500 local residents fell silent as she spoke.

“Four of my classmates have been diagnosed with leukemia,” she said. “I attended this high school and I’d like to know if emissions from the Northport power plant are a factor.”

Marill said that she and her classmates graduated Northport High School in 2016.

“This is an alarmingly high number,” she said.  “Most schools do not even have one student diagnosed.”

The situation Marill describes is statistically abnormal. Leukemia, a cancer of the blood cells, strikes mostly older adults. Suffolk County, overall, does have a higher leukemia incidence rate for 2011-15 than state averages, according to New York State Department of Health spokesperson Jill Montag. But more than half of the people diagnosed with the disease are in excess of 65 years old. 

“None of my classmates should be fighting for their lives so soon after graduating.”

— Samantha Marill

The statewide annual average for leukemia diagnoses for ages 20 to 24 totals 18, as reported in New York’s most recent cancer registry, which excludes New York City.

It would be expected that two people between the ages of 20 and 24 would be diagnosed with leukemia, according to the state’s statistics, in a population of 100,000. In the Northport-East Northport School district, where an estimated 36,000 people live, one case would be rare. 

“None of my classmates should be fighting for their lives so soon after graduating,” Marill said. A fifth high school friend, she said, was diagnosed with sarcoma, another rare type of cancer that affects connective tissues.

It’s difficult to know whether or not a specific environmental toxin will cause a particular individual to develop cancer, according to the U.S. Department of Health and Human Services 2003 report titled “Cancer and the Environment.” 

But Marill was one of two people to raise health concerns about the Northport power plant at that meeting. Christine Ballow said that she drives past the plant’s stacks daily, coming and going from her home on Eaton’s Neck. Her two neighbors, she said, suffer from another rare blood disease called Wegener’s granulomatosis. The disease effects the lungs, throat, sinuses, kidneys and blood vessels. The Mayo Clinic, a nonprofit academic health center, reports on its website that the disease is not contagious or hereditary. Its causes are unknown.

The Times of Huntington has dug into some of the issues and contacted state officials to learn how the public’s health concerns, past and present, are addressed. 

Here’s what we found:

• New York State Department of Health and the U. S. Department of Health and Human Services investigated complaints about the Northport power plant in 2009. 

  The 2009 report’s conclusion: “It is unlikely that people who live and utilize facilities around the Northport power plant will come in contact with chemicals originating at the Northport power plant site while touching soil or breathing dust at the [soccer fields], or by drinking groundwater that is outside of the Northport power plant property, and that in these ways operations at the Northport power plant are not expected to harm people’s health.”

• The only public health action recommended in 2009 was that the grass surface on the plant’s public soccer fields be maintained to ensure that the potential for exposure to arsenic and cadmium are minimized.

• That same report stated that contamination concerns date back to the late 1970s, saying: “There have also been many complaints about oil and soot emissions from the plant’s four smokestacks; some exceedances of air guidelines may have occurred, although no data on air emissions was reviewed that could confirm this.”

• Leukemia risk factors, which are listed on the state health department website, include exposures to ionizing radiation, smoking, rare viruses and blood disorders. Long-term exposure to benzene and ethylene oxide, typically in the workplace, are also a known cause of the disease.

• Suffolk County Water Authority reports by email that it tests its wells for benzene, but has never in 25 years identified the chemical’s presence in county waters.

• The Northport power plant is considered a Major Oil Storage Facility, an official term.  The 2009 report confirmed that the facility’s groundwater is subject to regular monitoring and reports that no significant petroleum products and material have contaminated the area. The water authority has confirmed by email that it has no record of significant contamination since 2009.

To address residents’ cancer concerns, New York State created in 1981 the Cancer Surveillance Program. It currently indicates no cancer cluster for leukemia near the Northport power plant, according to Montag. The program data, she said, shows one case of leukemia diagnosed between 2011-15 in the area that contains the plant.

“While the community has not requested an investigation for this area, interested community members are welcome to contact the Department of Health at 518-473-7817 or canmap@health.state.ny.us to discuss their concerns and provide detailed information,” she said.

The American Lung Association doesn’t track cancer or Wegener’s disease, but it does monitor air quality. It reports Suffolk County is repeatedly one of the most polluted counties in the state, and is assigned an “F” rating for its ozone emissions.

“Basically, the plant is required to meet modified emission standards from those applied to plants that are newly built,” said Jennifer Solomon, media person with the American Lung Association. “The power plant can emit thousands of tons of nitrogen oxides, a pollutant that is an essential contributor to ozone smog. Ozone is a powerful respiratory irritant and causes breathing problems for children, seniors and for those with chronic lung diseases, sometimes sending people to their doctors or even the emergency room.”

Graph from New York State DEC.

LIPA’s tax lawsuit against the Town of Huntington has pushed the community to a tipping point. 

LIPA spokesperson Sid Nathan directed questions about Northport power plant health concerns to National Grid, which owns the Northport power plant.

National Grid has not responded to phone and email requests for comment.   

“In response to constituents very serious concerns raised during my town hall meeting on LIPA, I am requesting that the state immediately look into these community health concerns,” Gaughran said. “I am requesting a meeting with the relevant state agencies to ensure that the health of our residents is of the utmost concern.”

As for Marill, a junior at SUNY Potsdam, she’s declared a major in environmental science. She wants to study environmental law.

“It’s wild to think that we could shut the plant down but, ideally, I would like to see it closed,” Marill said.  “We need clean sources of energy.”

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Residents file into Northport High School to speak out over LIPA's power plant. Photo by Donna Deedy

By Donna Deedy

More than 500 residents joined forces in the Northport High School auditorium March 16 to challenge the Long Island Power Authority. The quasi-governmental agency is seeking through the courts a 90 percent reduction in the approximately $82 million in annual property taxes it pays to the Town of Huntington for the Northport power plant. 

A number of Northport residents were galvanized to take action. Paul Darrigo, a local commercial banker with Capital One, launched a new Facebook page, Concerned Taxpayers Against LIPA.

“We now have 1,200 members and are still growing at a rate of 15 members per hour,” Darrigo said. 

LIPA states in its report, “2019 Fair Property Taxes for Electric Customers,” that New York charges more of the cost of government on utilities than other states. As a result, the not-for-profit entity alleges that it’s overassessed for its aging assets. 

“I am advocating for the governor to support my two initiatives to provide Long Island residents with $139 million in state aid to communities impacted by tax certiorari issues.”

— Jim Gaughran

“The plant’s units were built in 1967 and 1976 and its technology is outdated,” LIPA spokesman Sid Nathan said. The plant operates at 12 percent capacity today compared to 54 percent capacity in 1999, a 78 percent decline. 

The tax reductions LIPA seeks will reportedly be used to reduce customers’ electric bills.

Gordian Raacke, executive director of nonprofit advocacy group Renewable Energy Long Island, stated by email that he agreed. 

“All LIPA customers pay more than would be the case if the properties were assessed at fair value,” he said. 

But many Town of Huntington residents aren’t buying into what they call more empty promises. 

If LIPA’s case is successful, as the agency has been in previous cases, critics say it could inflict a major economic blow to the community. Northport schools would annually loose an estimated $49 million out of some $54 million it receives from LIPA, according to district’s attorney John Gross.

To compensate for the loss, the Town of Huntington states on its website that residents would be forced to pay higher property taxes.

New York State Sen. Jim Gaughran (D-Northport) organized the town hall meeting to answer questions and to let the community know that he aims to seek funding to soften the blow if LIPA’s case prevails. His legislative bills, however, would require the approval of state lawmakers and Gov. Andrew Cuomo (D). The state senator said he’s working to build consensus in Albany, but urges citizens to contact elected officials at all levels of government to encourage cooperation in the battle. 

“I am advocating for the governor to support my two initiatives to provide Long Island residents with $139 million in state aid to communities impacted by tax certiorari issues,” he said. “I am fully supportive of the town and school district in continuing their fight against LIPA.” 

The situation raises questions about how education is funded in New York state. However, many community members question why National Grid and PSEG aren’t bearing tax liabilities when shareholders are earning dividends. National Grid, a business based in the United Kingdom, owns the Northport plant and operates under contract to LIPA; PSEG Long Island manages transmission and distribution for LIPA. 

Gaughran said that he’s looking into reforms that ensure the public’s interest is properly represented.

“Local communities should not be bankrupt by runaway authorities like LIPA,” he said.

“I love this place, but if I can’t afford to pay my bills what good is it.”

— Joseph Sabia

Northport resident Michael Marcantonio was among people who spoke during the meeting. Now a lawyer specializing in mergers and acquisitions, corporate governance and hostile takeovers, the Northport High School graduate blames the problem on the government’s practice of using public funds to bail out shareholder-owned businesses. LIPA, he explained to the crowd, was formed when officials used the public’s money to buy all the debt and some of the assets of the Long Island Lighting Company after it mismanaged the Shoreham nuclear project, which
ultimately failed. 

“This is what corruption looks like,” Marcantonio said. “Do not trust LIPA, they are robbing us, and we need to fight this.” The Northport resident ran for the state’s 12th Assembly District in 2018, largely on the LIPA issue, but he was forced to drop out due to a court decision over him voting locally in 2012 and 2014 while a student at Duke University Law School in North Carolina.

Newspaper reports from 1998 show that the now defunct Bear Stearns, the investment firm involved in the subprime mortgage crisis, served as the state’s financial adviser for the LILCO bailout, before quitting to successfully bid and broker the deal’s bond offering. At $7 billion, it became the largest public offering for municipal bonds in U.S. history.  

The LILCO deal was originally promoted publicly as a 20 percent rate reduction plan, as reported in the May 28, 1998 New York Times article titled “The End of LILCO, as Long Island has come to know it.” Long Island ratepayers reportedly paid the highest electricity bills in the nation at the time. As details began to surface, critics found the scheme entailed delaying interest payments on the debt and permanently saddled ratepayers with 33 years of liability.

Nicole Gelinas, a senior fellow at the think-tank Manhattan Institute wrote a 2013 op-ed piece in Newsday titled “Long Islanders are still paying for three bailouts.” The policy analyst explained that Long Islanders need to understand the past mistakes related to the bailouts to prevent similar situations in the future. 

LIPA restructured part of its debt in 2013. That plan, as reported in Newsday, aimed to reduce the cost of debt, instead of paying it down.  

LIPA reports today that customers pay 10 percent in debt reduction and another 10 percent goes in interest. An additional 15 percent of a LIPA bill pays taxes and other fees. LIPA’s report does not specify what those other fees are. 

“Do not trust LIPA, they are robbing us, and we need to fight this.”

— Michael Marcantonio

Business leaders, who also spoke at the meeting, urged others to join the Northport Chamber of Commerce. School board members passed out red business cards instructing residents to visit STOP LIPA NOW on Facebook and get involved.  

LIPA states in its report that it ensures it’s working on all customers behalf to lower tax bills on its power plants and other equipment to reflect their fair value. It estimates the plant tax valuation at $200 to $500 million. Huntington assessed the value on the tax code at $3.4 billion.

The plant sits on some 244 waterfront acres near Asharoken, which LIPA estimates is worth “roughly $50 million.”

“We are confident that the court will agree that the Northport power plant is accurately assessed,” said Nick Ciappetta, Town of Huntington attorney. 

For people like Northport resident Joseph Sabia, the situation has become unbearable. 

“I love this place, but if I can’t afford to pay my bills what good is it,” he said.

The original article had the wrong first name for Sen. James Gaughran. We regret the error.

Northport power plant. File photo

The Town of Huntington and Long Island Power Authority have finally made their opening statements in a court trial that has been more than eight years in the making.

Huntington town officials, LIPA and National Grid are presenting their arguments over the proper tax-assessed value of the Northport Power Station beginning Feb. 25 before Justice Elizabeth Emerson at Suffolk County Supreme Court in Riverhead.

LIPA filed its tax certiorari case over the assessed property tax valuation of the Northport plant in 2010 seeking to reduce its annual taxes by 90 percent, in addition to repayment of all taxes it claims to have overpaid since 2010 — currently more than $550 million.

It doesn’t differ all that much from when you grieve your property taxes, but this is on a much bigger scale.”

— Nick Ciappetta

Huntington Town Attorney Nick Ciappetta said all parties have agreed to start with the bench trial, decided solely by Emerson, by challenging the taxes paid on the plant in 2014.

“Even though they have filed petitions to challenge every year beginning in 2011, they have to file petitions individually for each year,” the town attorney said.

Ciappetta said that the burden of proof to demonstrate that the Town of Huntington tax assessor’s assessed value of the plant was incorrect lies with the utility company. LIPA will need to provide documents and expert testimony that convinces the judge that Huntington was in error, according to the town attorney.

“It doesn’t differ all that much from when you grieve your property taxes, but this is on a much bigger scale,” Ciappetta said.

LIPA started the trial with its opening statement and by calling on two expert witnesses for testimony Feb. 25. The Huntington town attorney said he expected the utility company to call on two additional expert witnesses to the stand to testify on its behalf before the town responds.

“We feel good about our position and that LIPA will not be able to sustain their burden,” Ciappetta said. “They have an appraisal that makes the plant seem as if it is worthless. That plant is vital to Long Island’s power grid.”

The Huntington town attorney said the town’s legal arguments will highlight how the Northport Power Station is unique given its “ideal location” and several factors, including its ability to operate based on either gas or oil, and is believed to be fundamental to meeting electrical demands during severe weather events.

We feel good about our position and that LIPA will not be able to sustain their burden.”

— Nick Ciappetta

The trial is open to the public and any who wish to observe the proceedings or listen to the arguments are welcome to the Riverhead court room, located at 1 Court St.

LIPA did not respond to request for comment on the ongoing court proceedings.

Ciappetta previously stated although the Town of Brookhaven settled its case with LIPA earlier this year, he does not believe that agreement will have any impact on Huntington’s case.

While six months of mediation between the town, LIPA and National Grid under their hired third-party arbitrator attorney Marty Scheinman has not yet resulted in a settlement, it remains a probable outcome according to Ciappetta.

“There’s always the possibility it will settle,” he said.

The court trial proceedings, if not wrapped up this week, will continue in April.

Northport power plant. File photo

Town of Huntington officials made the decision Tuesday to take Long Island Power Authority’s proclaimed value of the Northport Power Station at $193 million as an invitation to investigate purchasing the facility.

Huntington town board approved a resolution offered by Councilman Gene Cook (I) to authorize the town attorney’s office to formally research into its legal options in utilizing eminent domain to take ownership of the Northport plant by a 4-1 vote.

“It’s for the people, to look out for the future of the Town of Huntington,” he said. “I have done a lot of research and I believe it’s the right thing to do.”

“It’s for the people, to look out for the future of the Town of Huntington.”

— Gene Cook

The councilman first raised the possibility of turning to eminent domain back in May, days after LIPA submitted documents to Suffolk County Supreme Court in its pending tax certiorari lawsuit against the town, which disputes the current annual tax-assessed value of the plant at about $80 million. The utility company has alleged the structure only has a fair market value of $193,680,000 as of July 1, 2013, based on a market value report from Tarrytown-based Tulis Wilkes Huff & Geiger.

“I looked at that appraisal not as a fair evaluation, but an invitation for the town to explore condemnation of the plant,” Councilman Ed Smyth (R) said. “The price is so ridiculously low that it would be negligent of us to not explore the possibility of acquiring the plant.”

Smyth said that he believes the Northport Power Station, which is actually owned by National Grid, is underutilized by LIPA, perhaps intentionally to devalue it given the ongoing tax certiorari lawsuit.

Cook had previously stated he believes the Northport facility is one of the largest power plants in the Northeast and will become more valuable with future improvements. He said his research shows the facility has the potential to operate and generate electric for another 15 to 30 years, up to a maximum of 40 years before closing down. Cook previously estimated the power station could produce as much as $5 billion in revenue per year for the town.

“The price is so ridiculously low that it would be negligent of us to not explore the possibility of acquiring the plant.”

— Ed Smyth

“What I like if the town buys it now at this rate is, when the plant is closed, we could shut it down and give the property back to the people for reaction or environmental uses,” he said.

Councilman Mark Cuthbertson (D) was the lone vote against an official resolution requesting the town attorney’s office to conduct research into the possibility of eminent domain. He called the legislation an unnecessary act of “grandstanding,” stating any board member could have simply verbally requested the town attorney to look into the matter.

“We are creating false hope this is a viable option, if it really were an option our lawyers would have suggested it a long time ago,” he said. “It is not a possibility to operate the LIPA plant as municipal power authority.”

The councilman also stated that under New York State General Municipal Law, if the town were to take over daily operation of the power station it would not pay any taxes to the Northport-East Northport School District — which currently receives approximately $56 million annually from the utility company.

If the town were to initiate the process of obtaining the power plan via eminent domain, it would not resolve the town’s lawsuit with LIPA. In addition to seeking a 90 percent reduction of taxes on the power plant, LIPA is asking for the town to reimburse it for alleged overpayment of taxes each year since it filed the claim in 2010 — totaling more than $500 million.

“We are creating false hope this is a viable option, if it really were an option our lawyers would have suggested it a long time ago.”

— Mark Cuthbertson

Sid Nathan, spokesman for LIPA, said the company had no comment as it is continuing negotiations at this time. 

Huntington, Northport-East Northport school district, LIPA and National Grid all agreed to sit down with neutral third-party mediator, Port Washington-based attorney Marty Scheinman, in nonbinding arbitration this July to see if all parties could reach a potential settlement agreement over the tax-assessed value of the Northport plant. The trial on the tax certiorari case is scheduled to continue in February 2019, according to Cook. 

Tom Kehoe, deputy mayor for the Village of Northport, commended Cook and the town board for their decision to move forward with investigating the legal potential of utilizing eminent domain to take over the plant.

“Whether it ever gets to the point of the town acquiring it through eminent domain, it’s another piece of the puzzle that will put a little pressure on the utility and LIPA to come to an agreement that’s good for all of us,” Kehoe said.

Northport power plant. File photo

Huntington’s elected officials are calling for changes to the structure of Long Island Power Authority despite being engaged in mediation with the utility company.

Huntington Town Board unanimously decided to send a message urging New York State Gov. Andrew Cuomo (D) and the state Legislature to enact the Long Island Power Authority Ratepayers Protection Act at its Nov. 8 meeting. The legislation, if passed, would require eight out of the utility company’s nine board members to be elected by public vote, among other changes.

“It is in the best interest of Town of Huntington residents to have a LIPA board that is elected by and answers to the ratepayers.

— Nick Ciappetta

“It is in the best interest of Town of Huntington residents to have a LIPA board that is elected by and answers to the ratepayers,” Town Attorney Nick Ciappetta said.

The bills were first introduced to the state Legislature in February 2017 by Sen. Kenneth LaValle (R-Port Jefferson) and Assemblyman Fred Thiele Jr. (D-Sag Harbor), co-sponsored by a coalition including state Assemblyman Andrew Raia (R-East Northport).

“I’ve been calling for the election of LIPA trustees forever, ever since there was a LIPA,” Raia said. “The best way to control our electric rates is to make LIPA trustees elected.”

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 based on the last U.S. Census, by May 1, 2019. 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 2019. Candidates on the ballot would not be chosen by the political parties. Those elected to the board would not be paid, but could be reimbursed from the state for their related expenses, according to the draft of the bill.

In addition, 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.

“It would make LIPA a whole lot more accountable than they are now,” Raia said. “Without a doubt.”

The best way to control our electric rates is to make LIPA trustees elected.”

— Andrew Raia

The legislation, despite being proposed in 2017, has not made it out of committee to a vote before either the state Assembly or Senate, according to the Legislature’s website.

No action can currently be taken on the legislation, though, as the state Assembly’s 2018 session ended in June. There are no plans to reconvene before year’s end, according to Raia, particularly with midterm elections flipping the state Senate to Democratic control. The bill cannot be enacted by Cuomo without getting the legislative body’s approval. Raia said he suspects Huntington’s elected officials are hoping the governor will consider working it into his 2019 budget, which is currently
being drafted in Albany.

“I’m not the biggest fan of putting policy into the state budget, but many times it’s the only way to get things done,” he said.

Huntington Town officials had no further comment on the timing of the message. Mediation pertaining to the value of the Northport Power Station between the town, Northport-East Northport school district, LIPA and National Grid is ongoing, according to Ciappetta, as he anticipates the next mediation session before the end of November. The tax certiorari lawsuit’s next date in court is Dec. 5.

Northport power plant. File photo

Long Island Power Authority has won the latest battle against the Town of Huntington in the lengthy legal war over Northport Power Station’s value.

New York State Supreme Court’s Appellate Division has reinstated LIPA’s right to pursue a lawsuit against the Town of Huntington regarding the amount of taxes levied against the Northport power plant, reversing a September 2015 decision made by a lower court. A panel of judges ruled Aug. 8 LIPA does have legal standing to be a plaintiff in the 2010 lawsuit it filed jointly with National Grid.

“We believe the appellate court’s decision is correct.”

— Sid Nathan

“We believe the appellate court’s decision is correct,” LIPA spokesman Sid Nathan said. “We remain committed to reaching a fair settlement for both the local communities and our 1.1 million customers to put an unsustainable tax situation back on a sustainable path.”

In September 2015, state Supreme Court Justice John Bivona issued a decision dismissing LIPA’s standing as an initiating plaintiff in the tax certiorari case, since National Grid — and not LIPA — is the owner of the plant. Bivona had written that while LIPA believed its financial interests are adversely impacted by a wrongly overstated assessment of the power plant, “the result is still remote and consequential and certainly does not constitute a direct loss because the property taxes levied upon the Northport Power Station are actually and directly paid by National Grid Generation LLC.”

LIPA filed an appeal of Bivona’s decision in 2015. The utility has asserted while National Grid does own the power plant, the station is under contract with LIPA. Under the contract, LIPA is required to pay all costs to run the power plant — including the $80 million in annual property taxes to the Town of Huntington — and provide necessary fuel, for which in return it receives all electricity generated for its customers.

The utility company claims that its costs to operate the Northport Power Station including the taxes on it exceed the total revenue, resulting in LIPA referring to it as a “significant burden to LIPA’s customers.”

We’re reviewing the order from the appellate division and we’re considering an appeal.”

— Nicholas Ciappetta

With LIPA’s legal status reinstated as a party of interest on the tax certiorari case, the issue of the property tax-assessed value of the power plant could proceed to trial.

However, Huntington Town Attorney Nicholas Ciappetta has said he plans to carefully review the appellate court’s decision.

“We believe this has been wrongly decisioned,” Ciappetta said in a statement. “We’re reviewing the order from the appellate division and we’re considering an appeal.”

This latest legal decision comes less than a month after Huntington voted July 17 to hire a neutral third-party mediator, Marty Scheinman, in an attempt to reach a resolution with LIPA, National Grid and Northport-East Northport school district. The town agreed to pay Scheinman $1,150 an hour in addition to covering all out-of-pocket expenses, such as transportation and a one-time administrative fee, the total bill will be split among all parties in the mediation. 

Mediation has not yet started, but the first session is slated for Sept. 26, according to Chiappetta.

Update: Additional information was added to further clarify that the town will be splitting the costs of the third-party mediator. 

Northport school district residents read and fill out letters to state and federal elected officials. Photo by Sara-Megan Walsh

By Sara-Megan Walsh

Northport-East Northport school officials are asking their residents to call on elected officials for immediate help finding a resolution to their seven-year legal battle against Long Island Power Authority.

Northport school district held a call-to-action forum May 30 in which it asked all residents to reach out to their state and federally elected officials to take action in bringing about a solution to the district’s lawsuit against LIPA and National Grid as a June court date looms.

“Our elected officials really need to hear from us,” Superintendent Robert Banzer said. “The more voluminous, the louder, the more persistent we are the more likely they are to listen.”

The more voluminous, the louder, the more persistent we are the more likely they are to listen.”
– Robert Banzer

Hundreds of copies of a form letter addressed to elected officials including New York State Gov. Andrew Cuomo (D), state Sens. John Flanagan (R-East Northport) and Carl Marcellino (R-Syosset), and state
Assemblyman Andrew Raia (R-East Northport) were distributed for residents to sign and mail in to lawmakers. These letters call on elected officials to take action to help aid the school district stave off LIPA, which seeks a 90 percent reduction in taxes — a difference of approximately $56 million down to $8 million paid to the district — before the state Legislature’s sessions end June 20.

“LIPA must be stopped before it is too late,” reads a letter pre-addressed to Raia. “We are seeking your assistance in calling upon the governor to provide immediate assistance in Albany. Action by the governor’s office can stop the imminent harm to us as taxpayers, to our schools, our students and the community at large.”

As the June 11 court date rapidly approaches, Banzer and the Northport school district are pushing state officials to approve what they are putting forth as two possible solutions.

First, would be the passage of pending legislation of state Senate Bill No. S08235, sponsored by Flanagan with co-sponsor state Sen. Ken LaValle (R-Port Jefferson), and its corresponding state Assembly Bill No. A10496, which is co-sponsored by Raia. These bills would lengthen the time frame over which LIPA is seeking to have its taxes gradually reduced from nine years to a proposed 15 years. It would also grant those municipal governments and school districts who lost a tax assessment challenge to LIPA after April 1, 2018, access to the state’s electric generating facility cessation mitigation program, which provides funding to help offset any potential loss of tax revenue. In addition, the town government and schools would be granted the right to create reserve funds specifically for the purpose of reducing the future burden on their taxpayers.

The Northport power plant. File photo

READ MOREHuntington stays on track in LIPA lawsuit despite cries for help 

“It would provide some mitigation of the impact to us,” Banzer said. This would provide a glide path, it would provide a somewhat softer landing should there be a [change in] assessment.”

Northport school officials are also asking residents to directly call on Cuomo and the state Legislature to intervene by directing that LIPA, as a utility company overseen by a state-appointed board, to offer a “reasonable and equitable” settlement offer.

While previous settlements have been declined, Banzer made clear, “we would never say we wouldn’t sit down and have conversation on how to mitigate this.”

On May 9, Northport school district attorney John Gross presented his argument in Suffolk County Supreme Court as to why he believes LIPA should be held to what school officials are calling the “1997 Promise.” Under this promise, school officials allege, LIPA and National Grid agreed not to challenge the annual taxes paid on the Northport Power Station as long as they were not abusively increased over time by Town of Huntington. A decision has not yet been issued by Judge Elizabeth Emerson, despite the June 11 trial date approaching.

We need to continue to put pressure on [Huntington town officials] to speak for us on behalf of the community.”
– Jennifer Thompson

“I think the community needs to communicate with town leadership,” Northport resident Jennifer Thompson said, citing the years Huntington Supervisor Chad Lupinacci (R) served in the state Assembly. “We need to continue to put pressure on them to speak for us on behalf of the community.”

Councilman Gene Cook (R) said he would call for Huntington Town Board to hold a public hearing regarding using eminent domain to acquire the Northport Power Station.

“LIPA has been lying to us,” Cook said.

The councilman claims that LIPA’s assessed value of $193 million for the Northport power plant focuses only on the electricity produced, but does not account for gas lines, cable transmissions or other public utilities that are received from the power station.

“I’m going to fight this,” he said. “I’m going to fight this to the end and I want you to know that.”

Northport taxpayers who are interested in getting in contact with their elected  officials or reading the form letters provided at the May 30 meeting can find them on the district’ website at northport.k12.ny.us/
district/lipa_update.

Northport power plant. File photo

Huntington town elected officials refused to entertain a request to hire additional legal help in its lawsuit against Long Island PowerAuthority, despite calls from Northport residents for help.

Huntington Councilman Gene Cook (R) offered a resolution at the June 5 town board meeting to hire Manhattan-based law firm Boies Schiller & Flexner LLP as additional legal counsel in the town’s pending tax certiorari case with LIPA and National Grid over the Northport Power Station as the case heads to trial in July.

“I believe this is a very needed law firm to hire at this point,” Cook said. “For the money that this law firm would [cost], it’s a whole lot less than the hundreds of millions we stand to lose.”

For the money that this law firm would [cost], it’s a whole lot less than the hundreds of millions we stand to lose.”
– Gene Cook

A request to hear and vote on a measure was shot down by a 3-2 vote, by Supervisor Chad Lupinacci (R), Councilman Mark Cuthbertson (D) and Councilwoman Joan Cergol (D).

“There are hundreds of thousands — millions of dollars at stake now in this case,” Lupinacci said. “Huntington has been fighting hard on behalf of the taxpayers. We will continue to use all legal options at our [disposal] to make sure LIPA and National Grid honor their contractual promises.”

LIPA filed a tax certiorari lawsuit against the town assessor’s office in 2010 seeking a 90 percent reduction in the tax assessed valuation of its Northport Power Station, and seeking repayment of all taxes it claims to have overpaid since 2010 — currently amounting to more than $550 million and growing.

Cook said the Manhattan-based law firm is one of the top litigation firms in the nation, although admittedly not specialized in cases related to power plants.

“We are losing a huge opportunity and it will hurt everyone out there by not doing this,” he said.

Several prominent Northport residents had pleaded with the town officials to support Cook’s resolution Tuesday afternoon including Northport school board trustee David Stein, who spoke as a private resident in support of the measure.

The army of attorneys, lobbyists and PR titans that we are against now requires an outsized army of our own.”
– David Stein

“LIPA and National Grid have brought in a veritable army of lawyers, lobbyists and [public relations] attack dogs,” Stein said, painting an image of a David-versus-Goliath fight. “The army of attorneys, lobbyists and PR titans that we are against now requires an outsized army of our own. And so, I urge you to engage the services of the biggest, best, brightest and most well-known in all of these areas now.”

Under Cook’s proposed contract, attorneys from Boies Schiller & Flexner would have been paid an hourly rate of not more than $1,650 an hour to assist the town’s current legal representatives from Lewis & Greer P.C. in determining a strategy and arguments for the upcoming trial. These accumulated attorney fees could not be bonded under state law, according to the town supervisor, but would have required dipping into the town’s capital reserves.

“If spending $1,650 were a silver bullet that would achieve something here, I would do it,” Cuthbertson said. “The law firm Cook would like to hire has absolutely no experience in tax certiorari cases that involve power plants.”

Lupinacci said he was willing to consider looking into other prominent litigation law firms which might be able to serve the town at a lower cost.

“Sometimes when [law firms] look at a municipality, they believe they are looking at deep pockets,” the supervisor said. “We have to do some outside the box thinking and leave no stone unturned.”

If spending $1,650 were a silver bullet that would achieve something here, I would do it.”
– Mark Cuthbertson

Northport Village Deputy Mayor Thomas Kehoe and Northport resident Tammy Topel both urged the Huntington town officials to take more aggressive action in light of additional information that has become public — spoken widely about by Cook — calling the Northport Power Station a hub through which natural gas lines and fiber optic networks for internet pass through.

“I believe these are misguided attempts to incorporate other aspects into the valuation process that just aren’t there,” Cuthbertson said. “It’s a red herring and unfair to the public.”

Cook vehemently disagreed with his fellow councilman in open debate.

The town is moving forward by pursuing help from its state elected officials, according to the supervisor, including scheduling a meeting with New York Gov. Andrew Cuomo (D) to garner his support for a resolution to the case. Lupinacci said the town still remains open to negotiations.

“We are always speaking with the other side to see if there is some kind of resolution, but we are probably not going to achieve a resolution that is going to be beneficial to the taxpayers of Huntington and to our students,” Lupinacci said. “We are prepared to take this case to trial.”

Councilman Eugene Cook calls for residents to launch letter-writing campaign to Huntington Town officials

Northport power plant. File photo

Town of Huntington officials are moving toward making a power play against Long Island Power Authority and National Grid to take over control of the Northport power plant.

Councilman Gene Cook (R) has called for town residents to participate in a letter-writing campaign asking Huntington’s elected officials to consider utilizing eminent domain to take control of Northport power plant.

His proposal comes days after LIPA allegedly submitted documents to Suffolk County Supreme Court for its pending lawsuit against the town, in which it disputes the tax value of the plant, claiming the structure only has a fair market value of $193 million, according to Cook.

“Their estimate is so far out of wack on it, they are almost like giving us the plant,” the councilman said. “If they want to give it to us, I want to take it.”

Cook said he thinks the Northport facility is one of the biggest power plants in the Northeast, which will become more valuable with future improvements. He estimated the power station could produce $5 billion in revenue per year for the town if it took over operation of the facility. He suggested the name “Huntington Power Service Company.”

“We want to serve our residents, not be an authority over them like LIPA has done,” Cook said. “They have taken LI Power Authority as ‘we have authority over everyone.’” 

Their estimate is so far out of wack on it, they are almost like giving us the plant.”

— Eugene Cook

The councilman drafted a resolution he said he plans to present at the May 17 town board meeting for Huntington to hold a public hearing. If approved, a hearing will be held June 5 at 2 p.m. for residents to voice their thoughts and concerns on the acquisition of the plant from National Grid, which is the owner of the power station.

“The basis of this acquisition will be for the purpose of delivery to the public of electrical power in a safe and cost-efficient manner,” reads the draft resolution.

Under New York State law, the town must publish its findings and determinations on the proposed acquisition from the public hearing within 90 days. The Town of Huntington is due in court to face LIPA less than a week later June 11.

“We are looking at every facet of possibility here when looking at the LIPA situation because it’s a very serious situation,” Supervisor Chad Lupinacci (R) said. “Any possibility that comes up we will review with our attorney — we will review it with experts to see if it’s feasible.”

Even if the town initiated the process of obtaining the power plan via eminent domain, it would not resolve the town’s lawsuit with LIPA. In addition to seeking a 90 percent reduction of taxes on the power plant, LIPA is asking for the town to reimburse it for alleged overpayment of taxes each year since it filed the claim in 2010 — totaling more than $500 million.

“Let’s save the consulting and legal expenses of evaluating this idea, which would be fiscally disastrous to the town, its taxpayers and wouldn’t resolve the pending tax certiorari litigation,” LIPA spokesman Sid Nathan said in a statement.

Let’s save the consulting and legal expenses of evaluating this idea, which would be fiscally disastrous to the town, its taxpayers and wouldn’t resolve the pending tax certiorari litigation.”

– Sid Nathan

LIPA disputes that the Town of Huntington could turn a profit operating the station, claiming Northport power plant is operated at a loss. The power company said its contract with National Grid requires it to pay all costs to run the plant — including $80 million in annual property taxes leveraged by the Town of Huntington — which exceeds its revenue. LIPA also stressed that if Huntington took control of the plant, all beneficial tax revenue would cease, leaving residents to pay more for their government services.

“We hope the town will join with other local communities on Long Island that are working with LIPA to reach a fair settlement offer that puts an unsustainable property tax situation at the Northport plant back on a sustainable path,” Nathan said.

The Town of Brookhaven and Village of Port Jefferson both announced they had reached settlements over the tax assessed value of the Port Jeff plant with LIPA in early April.

If the lawsuit is decided in LIPA’s favor, the utility company estimates that Town of Huntington residents would see their taxes increase by $62 a month, with Northport-East Northport school district residents responsible for an additional $210 to $220 per month.

Lupinacci has said the town remains open to bargaining with LIPA, while Cook said the only negotiation he is for is LIPA agreeing to withdraw its lawsuit.

“I will fight to the death on this one,” Cook said. “Either they want to be good neighbors or they don’t. If they don’t, they can hit the road.”

Town wins two court decisions against utility

Northport power plant. File photo

Huntington Town is touting two court decisions boosting its case against the Long Island Power Authority in an ongoing challenge over the assessment of the Northport power plant and the amount the utility pays in property taxes on the facility.

The decisions, issued by State Supreme Court Justice John C. Bivona, were dated earlier this month and received by the town’s special counsel on Sept. 25. The first decision dismissed LIPA’s standing as a plaintiff in the case, since National Grid, and not LIPA, owns the plant, according to the decision.

The second decision granted a stay in the assessment case until there is a final court determination of the town’s argument that National Grid should be held to a 1997 pledge by LIPA not to challenge the plant’s assessment. So far, the town has won pretrial decisions in that case, according to a town statement.

LIPA is suing Huntington Town to recover some $270 million in property taxes it paid since 2010, arguing the aging Northport power plant facility is grossly over-assessed. Northport-East Northport school district is also a party in the lawsuit.

If LIPA wins, Huntington Town taxpayers could see a 15 percent increase in town property taxes and a 60 percent increase in school taxes, according to the town’s website.

The judge dismissed LIPA’s standing as a party initiating tax certiorari proceedings. In one of his decisions, Bivona said that while LIPA believes its financial interests are adversely impacted currently by a wrongly overstated assessment of the power plant, “the result is still remote and consequential and certainly does not constitute a direct loss because the property taxes levied upon the Northport Power Station are actually and directly paid by National Grid Generation, LLC.”

In the second decision, Bivona granted a stay to the town on each of the four tax certiorari proceedings National Grid commenced challenging taxes from 2010 to 2013. The stay was granted until completion of a case involving the town’s contention that National Grid, as the successor to LIPA, should be held to the 1997 pledge.

In previous decisions, the Appellate Division of State Supreme Court cited both a letter then-LIPA chairman Richard Kessel sent to the town and statements Kessel made to the Nassau-Suffolk School Boards Association, during which he said he would drop any pending tax certiorari cases and not initiate any further ones at any time in the future. In return, the town promised not to increase the assessment on the plant. The town has not done so.

Most significantly, Bivona’s second decision means the court needs to consider the validity of the town’s 1997 pledge argument before embarking on a trial on the actual tax challenges — which promises to be complicated, lengthy and expensive.

“These two significant decisions help clarify the process for resolving these cases by first addressing the town’s key contention: that at the heart of the case is our belief that promises made by both sides should be kept,” Huntington Supervisor Frank Petrone said in a statement. “In the long run, resolving that question first should save taxpayers money by potentially obviating the need for a lengthy and expensive trial on the technical question of the assessment.”

A spokesman for the Long Island Power Authority said the utility didn’t have a comment on the issue.

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