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Port Jefferson is fighting to keep property tax revenue flowing from the power plant and to prevent restrictions from being lifted on peaker unit output. File photo by Lee Lutz

The Port Jefferson school district has climbed aboard a lawsuit against the Long Island Power Authority that challenges the utility’s efforts to reduce its property taxes at North Shore power plants.

LIPA has been working for the last several years to significantly reduce taxes at the aging Port Jefferson and Northport plants, saying the facilities are grossly over-assessed and force the utility to pay more in property taxes than it should. But the school board voted on Nov. 24 to join a lawsuit filed by the Town of Huntington and the Northport-East Northport school district that disputes LIPA’s legal right to file its tax challenges, claiming they are a breach of contract.

That argument stems from a 1997 letter from former LIPA Chairman Richard Kessel, in which Kessel said the utility would not file property tax challenges in the future “on any of their respective properties at any time in the future unless a municipality abusively increases its assessment rate.”

The “respective properties” referenced include the Port Jefferson and Northport power plants, which are owned and operated by energy company National Grid. That company sells the energy it produces to the Long Island utility.

In Port Jefferson, the power plant’s property taxes provide much support to the school district, accounting for almost half of its budget, making the potential loss of that revenue a serious issue for the district.

The Port Jefferson Village government is in a similar position, funding about one-third of its budget with power plant taxes. Smaller stakeholders include the Port Jefferson fire and library districts and the Town of Brookhaven.

In an announcement posted on its website last week, the Port Jefferson school district said, “Our decision to join this lawsuit is a necessary step to protect the resources of our school district and the financial stability of our taxpayers.”

Before the Port Jefferson school district joined the lawsuit, LIPA had filed a motion to dismiss it, but New York State’s highest court denied that motion earlier this year and allowed the case to move forward.

At that time, a LIPA spokesperson said the utility does not comment on ongoing litigation.

After the utility’s motion to dismiss was denied — representing a small victory for those fighting LIPA’s tax challenges — Port Jefferson Village filed a separate lawsuit in September that alleges the same breach of contract as the schools’ lawsuit. Village Attorney Brian Egan requested that court action on LIPA’s tax challenges, which are still pending in the court system, be delayed until the new lawsuits are resolved.

If the plaintiffs win their arguments, the pending tax challenges would be thrown out.

According to Egan, however, the lawsuits are now facing a new motion to dismiss, this time from National Grid.

An ‘old scam with a new twist’ is soliciting money from some PSEG Long Island customers and threatening to cut off service if payments are not made immediately. Stock photo

Long Island utility PSEG said residents across Nassau and Suffolk counties have been receiving suspicious phone calls threatening to cut their service if they don’t immediately pay bills that don’t exist.

An alert from PSEG Long Island said both residential and business customers have been receiving calls from tricksters claiming to be employees of the utility company and warning that their electric service would soon be cut if payments are not made to them the same day. Similar scams have been reported across the country, with PSEG being one of the latest to see customers fall victim to them, the utility said in a statement.

It was described as an “old scam with a new twist,” in which scammers spoof PSEG Long Island’s interactive voice response system prompt menu so that when customers call back, they are presented with an interaction that is similar to one they would receive if they called PSEG Long Island’s real customer service line.

“The scammers tell customers that, in order to avoid being shut off, they must immediately pay their bill with a prepaid card that can be purchased at many pharmacies and retail stores,” the utility said in a statement.

Dan Eichhorn, vice president of customer services for PSEG Long Island, said there were striking similarities in each of the scams.

“Scammers ask the customer to give them the number on the back of the pre-paid card and take the money from the card — usually within a matter of minutes,” he said in a statement. “This scam has affected companies across the country. We urge our customers to always use caution when making payments.”

The utility reassured that it would never force a customer to give them the number of a prepaid card, especially with such urgency. In a statement, PSEG Long Island said that suspicious residents should hang up the phone if they receive such a call and call back directly to test the validity of that call.

“When PSEG Long Island makes an outbound phone call to customers, customer-specific information is shared with the customer,” PSEG Long Island said in a statement. “That information includes the account name, address, number and current balance. If customers do not receive this correct information, they likely are not speaking with a PSEG Long Island representative.”

The number on the back of PSEG Long Island customer bills is 1-800-490-0025.

PSEG Long Island said the utility was working with local and national law enforcement to investigate the matter further and is reaching out to its contacts at local community service agencies, asking them to spread the word to their clients.

Projects will launch in Huntington Town next week

File photo by Arlene Gross

Crews from PSEG Long Island are expected to launch an eight-month-long project in Huntington Town on Monday in an effort to strengthen the electric grid across Long Island.

Work on the project will follow a three-mile route along an electric line circuit in Huntington, Huntington Station and Cold Spring Harbor, according to a PSEG Long Island statement. The project will be funded through the Federal Emergency Management Agency (FEMA), a federal program that coordinates responses to national disasters.

The more than $729 million for the project were secured for the Long Island Power Authority through an agreement last year between Gov. Andrew Cuomo (D) and FEMA through FEMA’s Hazard Mitigation Assistant Program.

The project will replace existing wire with more weather-resistant wire, install new and durable poles in several locations, and install or replace switching equipment to help reduce the number of customers affected by power outages.

“We are committed to making our transmission and distribution system more resilient, able to better withstand extreme weather events,” David Daly, PSEG Long Island’s president and chief operating officer said in a press release. “Superstorm Sandy has had a lasting impact on our customers, and the recovery and healing is still ongoing.”

The project is expected to implement reinforcements that will help the system in future storms. After Hurricane Sandy, people across Long Island were without power for upward of 10 days. Both Hurricane Sandy and the winter storm that followed in 2013 severely impacted the transmission and distribution system operations, a representative of PSEG Long Island said.

Work on the system will start on or about April 6, Monday through Friday between 8 a.m. and 4 p.m. While there is the potential for some road closures along the route, PSEG has not said when and where they will be.

Trees that grow near power lines will be trimmed, as they pose a safety risk and increase the chance of power outages. New poles will also be approximately the same height as existing poles but will have a stronger base and be situated a few feet from the current pole.

“After Sandy, we know firsthand how important it is to invest in the infrastructure to fortify it to withstand extreme conditions,” Jon Kaiman, special advisor to Cuomo for storm recovery and chairman of the Nassau Interim Finance Authority said in a press release.

To see a complete list of the project route visit https://www.psegliny.com.

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