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Long Island Power Authority

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Community choice aggregation, a revolution in energy procurement, is making a splash throughout Long Island.

Starting in May, the Town of Brookhaven will launch a CCA program, contracting with Manhattan-based Good Energy LLC for a fixed rate for natural gas consumers over the next two years.

In an interview, Town of Brookhaven Councilmember Jonathan Kornreich (D-Stony Brook) explained how the program would operate. Under the longstanding method of natural gas delivery in the town, National Grid — based in the U.K. and northeastern U.S. — purchases the supply and delivers the gas. CCA alters this dynamic.

“CCA is just a method of purchasing a commodity on a communitywide basis,” he said. Under the program, “all of the customers of National Grid in a certain area are getting together to say, ‘We’re going to jointly purchase fuel cooperatively from a different source.’”

That source, Good Energy, has agreed to supply gas at a fixed price of 69.5 cents per therm. “That locks in the price for all customers” for two years, the councilmember said. 

National Grid, which still operates the delivery systems, will continue to bill customers for those services. The only section of the bill affected by the changes will be for energy supply.

An August report from the U.S. Energy Information Administration states that the natural gas market saw record volatility last year due to demand changes, storms and geopolitical unrest. 

Given the many variables that contribute to fluctuations in gas prices, Kornreich suggested Brookhaven homeowners and businesses would be less beholden to the volatility of the market under CCA. “We’re going to pay just one price for the next two years,” he said. 

The town is also hedging that the market price of natural gas will rise over the next two years. If that happens, CCA will deliver discounted gas to Brookhaven ratepayers throughout the contracted period.

“The expectation that I have, as given to me by the corporate representatives with whom I met, is that there’s going to be a savings to the customers,” Kornreich said. “My hope is that this price is competitive over a two-year period.” 

He added, “Based on the models that they’ve shown me, this price will — over the long term — on average be lower than what they would have paid if they had just rode that market price.”

CCA: An energy revolution

‘A CCA can play a role in helping the residents to have more negotiation power.’ ­

— Gang He

Community choice aggregation first came about in the 1990s as a model of procuring energy whereby a municipality can pool the buying power of its residents to negotiate favorable energy contracts.

Gang He is an assistant professor in the Department of Technology and Society at Stony Brook University, whose research focuses on energy and climate policy. 

The assistant professor regarded the traditional relationship between energy consumers and suppliers as heavily skewed in favor of suppliers, referring to consumer protections under CCA as correcting the power imbalance.

“When utilities deal with residents, residents have no power,” Gang He said. “It’s a monopoly, and it’s heavily regulated by regulators. A CCA can play a role in helping the residents to have more negotiation power.”

Paul Fenn, founder and president of the Massachusetts-based CCA firm Local Power, drafted some of the original enabling legislation for CCA in Massachusetts, California and throughout the U.S. In an interview, he traced the history of CCA.

Fenn said vertically integrated investor-owned utilities have historically operated as monopolies and cartels, given their guaranteed rates of return by state regulators and energy market deregulation. CCA, he said, seeks to rectify this.

“The basic definition is that CCA is a model of energy supply that is neither a monopoly nor a cartel,” he said.

He likened the energy model to Costco. “The reason that large users achieve cheaper services is like going to Costco,” he said. “If you’re buying 200 rolls of toilet paper instead of 20, you pay a lower price.”

CCA applies this framework to the energy supply, giving the small consumer the perks of a bulk purchaser by pooling the buying power of entire communities. 

“It’s a way for small users … to gain the economic buying power enjoyed by the largest corporations,” he said, adding, “The aggregations are designed to deliver the benefits to the user and not to the supplier.”

Two factors, according to Fenn, have contributed to the rise of CCA nationwide. On the one hand, the economic model has been tailored and perfected to benefit individual users over large suppliers. On the other hand, renewable technologies have progressed to the point where they are now competitive with fossil fuels. 

Fenn characterized CCA as a revolution for capitalizing on the convergence of cheap renewable energy and consumer protections for utility power.

‘Community choice aggregation programs can be a great tool for getting community solar built, paid for and delivered to people.’ ­

— Anne Reynolds

Promoting renewables

Anne Reynolds is executive director of Alliance for Clean Energy New York, a group of private companies and nonprofits partnering to expand green energy opportunities throughout New York state. Reynolds indicated that CCA could be interpreted in two ways — as an economic model or as a way to promote green energy.

CCA “can be purely an economics choice,” she said. “You can think of it as a collective buying co-op,” but “most of the examples in New York state are when the community also wants to get a renewable energy product.”

Reynolds stated that CCA is not the main objective of ACE NY as CCA “hasn’t been the primary way that renewable energy products are getting built in New York, which is what we focus on,” she said.

Her organization instead emphasizes the construction of large-scale, grid-connected renewable energy projects through long-term contracts with the New York State Energy Research and Development Authority.

Under the Climate Leadership and Community Protection Act, the state must procure 70% of its energy from renewable sources by 2030 and 100% by 2050. When asked whether CCAs offer a pathway toward a greener future in New York, Reynolds responded that there must be a mix of large-scale and small-scale projects.

“To get there, we’re going to need an unprecedented construction of renewable energy projects — offshore wind, wind, solar, batteries,” she said. “To get that done, these projects need to have a guaranteed market for their power, what they refer to as offtake agreements.”

She added, “Having those offtake agreements with the State of New York is one way to do it. Having the offtake agreements with communities in New York is another.”

One way CCA can promote new development in renewables, Reynolds said, is through community distributed generation, often referred to as community solar. 

“Community choice aggregation programs can be a great tool for getting community solar built, paid for and delivered to people,” she said. “For the state to meet its goals, and for Long Island especially, it’s going to require a little bit of everything.”

The Southampton model

Brookhaven is not the only municipality in Suffolk County implementing CCA. In the neighboring Town of Southampton, local officials are exploring a different posture, with an energy plan geared toward electricity instead of natural gas.

Lynn Arthur is the energy chair of Southampton’s volunteer sustainability committee and the founder of the nonprofit Peak Power Long Island, a consultancy group that services municipalities and their constituents on renewable energy technologies.

Arthur said there are currently two CCA administrators operating on Long Island, Good Energy and Bedford Hills-based Joule Community Power, Southampton’s CCA administrator. She notes that the difference in administrators has placed the two municipalities on separate trajectories.

In Southampton, the Town Board is working toward obtaining electricity from 100% renewable energy sources by 2025. Arthur said that goal is coming into focus.

“It’s only natural that we would try to get a power supply contract for 100% renewables for electricity,” she said.

To meet this task, Arthur suggested CCA would play a pivotal role. She is now advocating for the Southampton Town Board to submit a request for proposal to supply electricity from 100% renewable sources.

Brookhaven vs. Southampton

Weighing Brookhaven’s CCA against Southampton’s, former New York State Assemblyman Steve Englebright (D-Setauket) suggested that Southampton has the upper hand.

“I think Southampton’s model is the better one,” he said. “Electricity is the future. We should be moving away from natural gas.”

But, he added, “to the extent that the Town of Brookhaven can get started with [CCA] is promising. I think the inevitable success of what Southampton is doing will compel their next-door neighbor, Brookhaven,” to follow suit.

Despite Brookhaven’s gas-exclusive CCA, Fenn did not say that gas aggregation was inherently brown and electricity aggregation green. Rather, he said promoting renewables through CCA is a matter of how a program is implemented.

He objected, however, to the limited scope of Brookhaven’s CCA initiative. “This program is defined narrowly as a discount-only program, and I think that’s not a particularly good idea,” he said. “It’s hard to argue against stabilizing people’s rates, but it won’t help the environment if that’s all they’re doing, and it may hurt it.”

Creating competition

‘I like the idea of moving away from monolithic energy sourcing.’ ­

— Steve Englebright

Fenn regarded municipalities as sometimes prone to short-term thinking. While gas aggregation is a step toward unshackling ratepayers from the market’s volatility, he said it is incomplete.

Instead, he advised Brookhaven leaders to explore fuel switching, that is, transitioning residents from natural gas to electricity. The heat pump, for example, constitutes one way in which a home’s heating can be fulfilled by electric power instead of gas.

“Apart from the climate crisis, which says stop burning this stuff, there are so many reasons” to transition off fossil fuels, Fenn said. By fuel switching, “you’re adding electrical load when you do that, but you’re deleting gas demand.”

By creating a separate program for electrical aggregation, Fenn said Brookhaven could correct course, providing gas customers with greener options for heating. 

Asked whether the Brookhaven Town Board could add a second CCA administrator for electricity, he responded affirmatively. “Just deliver both, and you can,” he said.

Arthur emphasized that municipalities can have separate CCA administrators for gas and electricity. She suggested Brookhaven add a second administrator for electricity to further competition.

“Fundamentally, if competition is good, and if you want everybody to go to electricity and get away from gas, then you should have [CCA administrators] compete with each other,” she said.

Local vs. centralized intervention

Fenn noted the decline of municipal power since the Civil War, which he said had rendered local governments impotent compared to their state and federal counterparts. He criticized the tendency of local officials to outsource services to third-party vendors.

“Part of the problem is the dependence on third parties cripples the governments by making them intellectually captive to those service providers,” he said. “We believe municipalities should have skin in the game and should use the power that they have.”

Fenn attributed the climate and garbage crises in the United States to the decline of municipal powers and the failures of centralized government. He encouraged local policymakers to embrace programs like CCA to counteract these downward movements.

“There has to be knowledge, responsibility and therefore control” vested in municipal government, he said. “CCA uses contractors to provide services, but they’re firmly under the control of the municipality.”

While CCA proposes a local solution to a global climate phenomenon, questions remain about the best forms of intervention. 

For Reynolds, tackling the climate crisis requires a centralized intervention from the higher levels of government, with local governments doing their part as well. “We absolutely need both,” the ACE NY executive director said. 

For the state to reach its aggressive emission mandates, “you’re going to need larger power projects, too, like offshore,” she said. “But it shouldn’t be an either or question.”

‘It’s so clear that this is such a great opportunity to move the needle on renewables and, at the same time, lower costs for their constituents.’ ­

— Lynn Arthur

A sustainable future

Gang He viewed the growth in renewable energy, evidenced by over $1 trillion in worldwide investment last year, as a turning point in energy history. 

“Renewables have gained momentum,” the SBU assistant professor said. “The challenge is how do we maintain the momentum to deliver the outcome that we desire?”

Arthur recommends CCA to local officials as a way to do so. “It’s so clear that this is such a great opportunity to move the needle on renewables and, at the same time, lower costs for their constituents,” she said.

Asked whether Brookhaven’s CCA could spur interest in a similar program for electricity, Kornreich expressed optimism that the town’s program would foster better energy stewardship.

“I hope that it does open people’s eyes to the possibility and to get people more comfortable with the concept of being a more conscious consumer of utility power,” he said. “Whether it’s gas or electric, people can understand they can choose and that their choices will have an impact on the environment.”

Though acknowledging some of the drawbacks to the Brookhaven program, Englebright expressed encouragement about moving away from the preexisting procurement structure.

“Great journeys are made a step at a time,” the former assemblyman said. “I like the idea of moving away from monolithic energy sourcing.” He added, “A more distributed power system is to our advantage, ultimately — more competitive, less monolithic and more responsive to the public.”

For more details on the Town of Brookhaven’s Community Choice Aggregation Program, visit the website brookhavencommunityenergy.com. 

According to the website, “Eligible customers will soon receive additional information in the mail regarding product features, including information about the renewable energy option.”

Correction: In the print version of this article published on March 9, the town’s community choice aggregation administrator, Good Energy LLC, was misidentified as a London-based firm. In fact, Good Energy is headquartered in Manhattan. We apologize for the error.

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New York State Assemblyman Steve Englebright (D-Setauket) has held elective office continuously since 1983. Englebright’s long tenure now comes to a close. 

In a tight state election for District 4 last month, Englebright narrowly lost to his Republican Party challenger Ed Flood (R-Port Jefferson). In an exit interview, the outgoing assemblyman reflected upon his pathway into government, the legislative victories throughout that time and the meaning of public service.

The road to politics

Growing up, the young Englebright spent much of his time in libraries. He found refuge in books, which satiated his curiosity and “compelling interest in how things worked.” He also nourished a lifelong fascination with history through those hours devoted to learning.

Leading up to his first run for office, Englebright said he was deeply disturbed by the environmental degradation characteristic of those times. The “almost daily reports” of overdevelopment and sprawl, oil spills and drinking water contamination, each had left a deep and abiding impression on him.

‘The proper role of government is to protect the people who sent you.’ — Steve Englebright

He was teaching geology at Stony Brook University when he began considering public life. “I realized that drinking water was the first limiting factor for the continued well-being of this Island, and I was not really seeing any meaningful public policy growing out of the reports of chaos,” he said.

The late professor Hugh Cleland, from the SBU Department of History, would prove to be the catalyst behind Englebright’s ascent to politics. Cleland sat down with him at the campus student union. For several hours, the two discussed a possible bid for a Suffolk County legislative seat.

“This was a really serious and credible and well thought-out request that he was making,” Englebright said. “So I didn’t just wave it off. I gave it some thought and, sure enough, I found myself saying, ‘What’s next?’” 

After that meeting, Englebright decided to run and was elected to the county Legislature in 1983. He won election after election for the next four decades.

County Legislature

Upon entering the county Legislature, Englebright simultaneously confronted an array of environmental dilemmas. He described the defunct Long Island Lighting Company, the precursor to today’s Long Island Power Authority, as “at that time wanting to build a small galaxy of nuclear power plants on Long Island.” He stressed that the utility company was favoring its shareholder interests at the residents’ expense. 

Englebright successfully championed, along with a grassroots movement of LILCO ratepayers, against the construction of the Shoreham Nuclear Power Plant and other nuclear plants to follow. Their resistance efforts were grounded primarily in the risks associated with evacuation.

Another major policy issue during his early political career was the protection of groundwater and surface waters in Suffolk County. “I pushed successfully for the largest county-level open space program in the nation,” he said. He was one of the earliest critics against sprawl. 

As a county legislator, he initiated the first plastics ban in the nation. Though ahead of his time on the issue, he admitted that not enough has been done elsewhere to counteract the problem, which he said “has exploded into a worldwide catastrophe.”

He sponsored legislation excising a small fee on hotel and motel rooms, considering the measure as a fee on tourists allowing for their continued enjoyment of the area through reinvestment into the county’s most attractive destinations.

“If you wonder why county Legislator [Kara] Hahn [D-Setauket] is able to have some discretion to provide funding to Gallery North or the Reboli Center, that funding is coming from the hotel/motel room fee,” he said.

State Assembly

New York State Assemblyman Steve Englebright (D-Setauket). Photo from North Island Photography and Films

As a state assemblyman, Englebright quickly picked up where he left off, building upon and expanding his county policies at the state level. Among his earliest actions was the Long Island Pine Barrens Protection Act, a state law ensuring the preservation of the Pine Barrens as open space.

He sponsored some of the original laws in New York state related to solar power and other renewables. “In my first year in the state Legislature, I was successfully pushing for legislation that had paved the way for the electronic age,” he said.

Englebright added that the Climate Leadership and Community Protection Act was the most crucial legislation he ever sponsored. This ambitious law aims to reduce statewide greenhouse gas emissions by 85% from 1990 levels by 2050.

Englebright also successfully led a statewide ban on purse seining, a highly efficient fishing technique responsible for the depletion of menhaden, or bunker, in New York’s surrounding waters.

“The marine world all depends on having this abundant fish at the base of the food chain,” the assemblyman said. Purse seining allowed large-scale fishing operations to collect “whole schools of menhaden, millions and millions of fish.”

One of the fondest moments throughout his tenure happened just last summer. On a boat trip off the coast of Montauk Point during early morning hours, the sun rising off the horizon line, he witnessed entire schools of menhaden beneath the water.

“The sea was boiling with fish,” he said. “Menhaden, they were back by the billions.”

Reminiscent of his earliest years in libraries, historic preservation would be a significant point of emphasis for Englebright. “I’m very proud of the many properties that are preserved, the historic sites.” Such sites either preserved or to be preserved include Patriots Rock and Roe Tavern in Setauket and William Tooker House in Port Jefferson, among many others.

Even in his final days in office, Englebright made historic breakthroughs. Though his reelection bid was unsuccessful, Englebright rejoiced in yet another major victory for environmental sustainability. Last month, New Yorkers overwhelmingly approved a recent $4.2 billion environmental bond act, a multiyear investment in clean water, air, wildlife and the environment.

Reflections from his community

During his extended time in political service, Englebright has worked alongside countless public representatives at all levels of government. He maintained “they’re not all scoundrels,” adding that many were “superb public servants.”

In a series of written statements and phone interviews, several public representatives and close Englebright associates and friends had an opportunity to weigh in on his legacy of service and commitment to his community. 

Englebright “proved himself to be an environmental pioneer, a champion for the causes and concerns of his constituents and an unflinching fighter for the communities he served,” Hahn said. “For those of us who served in elected office with him during his tenure, irrespective of political persuasion or level of government, Steve proved himself to be a friend and mentor who embodied the role of effective leadership in the lives of those we represent.”

 As recently as Dec. 6, the Three Village Community Trust honored the assemblyman by renaming the Greenway trail as The Steve Englebright Setauket to Port Jefferson Station Greenway.

Port Jefferson Mayor Margot Garant commented on the characteristics that set Englebright apart from other politicians. She said his scientific background and wide-ranging interests added depth to his political persona.

 “He’s a unique legislator in that he’s so well rounded in those other areas and that he’s not just focused on the hard line of the law,” she said. “He’s involved with his community, he’s approachable, he’s caring, he’s kind. He’s a very unique representative, and we’re going to miss him sorely.”

 Like Englebright, Port Jefferson village trustee Rebecca Kassay worked in environmental advocacy before entering government. She discussed Englebright’s ongoing extended producer responsibility legislation, which would require producers of packaging materials, rather than taxpayers, to be responsible for managing post-consumer packaging material waste.

 “This can be a step toward addressing a multitude of waste management, environmental and financial issues facing municipalities and individuals,” Kassay said. “I hope to see the assemblyman’s colleagues and successor continue advocating for policies with long-term solutions,” adding, “Englebright is the type of commonsense representative we’d like to see more of in government.”

 In a joint statement, George Hoffman and Laurie Vetere of the Setauket Harbor Task Force reflected upon Englebright’s importance to local harbors.

 “In his time as our state representative, Steve Englebright never forgot the importance of the harbor,” they said. “Assemblyman Englebright found ways to secure needed dollars from Albany to help the task force in its mission of protecting water quality and the sustainability of Setauket and Port Jefferson harbors.” 

Joan Nickeson, community liaison of the Port Jefferson Station/Terryville Chamber of Commerce, credited Englebright for the continued flourishment of her area. She said the hotel/motel tax he sponsored had enabled the chamber to conduct its annual summer concert series at the Train Car Park.

 “Assemblyman Englebright has continued to be a friend of the chamber by supporting our local businesses and attending our ribbon-cutting ceremonies,” she said.

 Within those 40 years, countless other acts and initiatives have come to fruition with Englebright’s assistance. Reflecting on his time in public service, he outlined his political doctrine.

 “The proper role of government is to protect the people who sent you,” he said. “If you keep your eye on the prize, you can achieve things for the people who invested their trust in you.” 

 On the role of the public representative, he added, “Use the office as a bully pulpit, speak truth to power, identify things that are wrong and right them, and treat the office as an opportunity to do good.”

 For wielding his office as a force of good for four decades, TBR News Media dedicates Steve Englebright as honorary 2022 Person of the Year.

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Graphic from the district website

Port Jefferson School District residents are confronting a major public referendum on Monday, Dec. 12.

Earlier this month, the district’s board of education passed two resolutions to put the combined $25 million in capital bonds projects out for a public vote. 

Now district officials are making their pitch to the general public, with three bond tours scheduled for October and November. Approaching this weighty decision, the community is evaluating its options.

 

Highlights

  • Capital bonds vote to be held Monday, Dec. 12
  • Proponents of Proposition 1 say facilities improvements are necessary to draw families into the district and maintain property values
  • Critics question the environmental risks and cost effectiveness of artificial turf in Proposition 2, district stands by the measure

Proposition 1

The lion’s share of the two ballot measures will go toward Proposition 1, a $23.1 million infrastructure package to modernize the district’s aging and outdated facilities. Such improvements target heating and ventilation systems, renovations to the locker rooms and team rooms, and relocation of art, technology and music rooms, among other reconfigurations.

In an email statement from Jessica Schmettan, superintendent of schools, she outlined how infrastructure improvements will help the district meet its academic standards. 

“Many of the existing items are original to the buildings, most dating back to the 1960s,” she said. “Our mission in Port Jefferson has always been focused on academic rigor and personalized instruction for all students. … In order to focus on these areas, we need to modernize and renovate aging facilities.”

Mayor Margot Garant expressed support for these investments. For her, it is prudent to invest now while district taxpayers are still subsidized by the Long Island Power Authority. 

“We are in a position right now where we have five years left on our glide path,” Garant said, referring to the gradual decline of LIPA subsidies in the coming years. “For every dollar that we spend, LIPA is still picking up 50 cents on that dollar. These facilities need to be protected, and they need to be invested in.” The mayor added, “If we don’t make those investments, that’s going to start to have impacts on property values and on whether people want to come and live here.”

New York State Assemblyman Steve Englebright (D-Setauket) has followed the matter closely. In an exclusive interview, he likened investments in school facilities to an oil change on a car: Residents can either pay now or pay in the long term.

“I think the mayor is right,” Englebright said. “This is a moment. If you miss that moment, then the buildings deteriorate and they become less appropriate for the next generation of students going into them.” He added failing to recognize these needs is “short-sighted thinking.”

‘There is still an open question as to whether these artificial fields are a) without biohazards and b) cost effective.’

— Steve Englebright

Proposition 2

The second ballot measure varies widely from the first in terms of scope and cost. It has also drawn significantly more opposition from the public and even members of the Board of Education. 

Proposition 2 concerns the $1.9 million proposed crumb-rubber artificial turf field for athletic competitions. This proposal also comes with continual costs for replacement every eight-to-12 years, a sticking point for some.

Paul Ryan, a district resident and former BOE candidate in 2022, is among the most vocal opponents of this measure. “My position on Prop 2 is that it is financially irresponsible in this economic climate of high inflation,” he said. “It’s a heat sink and will fill our harbor with microplastics, less safe than grass and less enjoyable for most of our community to play on.” He added that the process to put out the turf field for public referendum was “conducted in an ethically dubious manner.”

Ryan is not the only one against the turf field proposal. During a special meeting of the BOE on Tuesday, Sept. 13, numerous other residents raised objections to Prop 2 on similar grounds.

Citing the potential for environmental or ecological harm, Englebright, a geologist by training, expressed in his interview reservations about using artificial turf.

“The underpinnings of the artificial turf is rubber, and it usually comes from waste tires,” he said. “That has proven to be a source of contamination.” The state assemblyman added, “In the universal sense — I don’t mean specifically for this school district — there is still an open question as to whether these artificial fields are a) without biohazards and b) cost effective.”

On the other hand, during the Sept. 13 meeting, many parents and students showed support for the turf proposal, contending that it would foster school pride and bolster a sense of community identity.

Regardless of the mixed reaction, the school district remains supportive of Proposition 2. “The district is equally supporting both propositions on the ballot that represent a variety of needs,” Schmettan said.

Long-term uncertainty

During this year’s trustee election for the Board of Education, candidates debated the topics of declining student enrollment and the chance that PJSD will merge with another school district in the coming years. [See “Port Jeff BOE candidates tackle the issues,” The Port Times Record, May 12.]

Though these debates remain unsettled, Schmettan holds that the capital bonds will help draw families into the district while meeting its academic aims.

“There is no doubt districts across Suffolk County are experiencing a decline in student enrollment,” she said. “However, merging with another school district erases our unique opportunities and increases school tax rates.” The superintendent concluded, “We need to improve facilities to match our outstanding academic programs and explore ways to attract families with children to the area.”

Garant spoke in similar terms. She believes Port Jefferson remains a desirable location to raise a family. However, preserving a high standard of living and quality public schools comes at a price.

“When you go for a bond initiative, it’s a project of significant proportions,” the mayor said. “I’d rather see us make an investment and secure the quality of life that we have. And that will be up to the voters.”

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Northport power plant. File photo

A decade after the Long Island Power Authority sought to reduce the taxes it paid on the Northport Power Station, the Huntington Town Board voted to approve a settlement 56 minutes before the offer on the long-standing case expired.

With the possibility of a judgment that would not only hurt Huntington’s finances but would also have implications for the economy of Suffolk County, the Town Board voted 4-1 at 11:04 p.m. Sept. 3 to support a settlement that will cut LIPA’s taxes to $46 million from $86 million over the next seven years.

During a public forum that ran for well over five hours, Supervisor Chad Lupinacci (R) said he supported the settlement, in part because he wanted to protect the value of real estate. He also described it as a transaction the town could be “proud of.”

Councilman Gene Cook (R) voted against the terms because he suggested the board was elected to fight for the people.

Several residents spoke during the virtual hearing, with some expressing their reluctant support and others bristling at the deadline to agree to the settlement in the midst of the pandemic.

As part of the terms of the deal, LIPA also agreed to pay the town an additional $1 million each year for 2021-23.

LIPA had submitted an appraisal in 2019 that valued the property at the Northport power plant, which has the four tall red-and-white smokestacks that are visible from the Long Island Sound, at $193 million, considerably below the original $3.6 billion assessment. A judgment in favor of LIPA could have dramatically cut LIPA’s taxes while putting the town on the hook for a refund and interest liability of $825 million.

The Suffolk County Tax Act would require the county to pay the LIPA refund, which the county would then have to charge back to the town.

While the county could raise funds from public investors to pay LIPA, county Comptroller John Kennedy Jr. (R), who supported the settlement, laid out the extreme difficulty in such a course of action.

“We had to go into the market in April for a $105 million budget anticipation note,” he said. “We got slaughtered. We had to pay 4%” interest on that money. “That’s the equivalent of going to a leg breaker. We’re not in a good financial position at all. Saying we’re shaky” in raising any additional funds, let alone $1 billion, “is an understatement.”

Additionally, County Executive Steve Bellone (D), who voiced his support through a letter prior to the vote, argued that the settlement was “far better than anything [else] offered during the course of the dispute.”

As a part of the settlement, LIPA has agreed to waive all refund liability upon compliance, will pay $14.5 million to the Northport-East Northport school district and will have a lower assessed valuation for seven consecutive years to achieve tax payments not exceeding $46 million by 2026-27.

In years eight through 12, the taxes would remain steady at $46 million.

In addition to the financial implications, the settlement withdraws all appeals and pending lawsuits and gives the town a most-favored nation entitlement, which means that the town would be eligible for similar terms that other municipalities negotiated with the power authority.

The settlement also protects against a ramp down or the retirement of units, which means that the tax base won’t decline even if LIPA closes down some of the capacity of its Northport facility.

The implications of the deal are most profound for residents of Northport and East Northport. For an average residential home worth $484,868, taxes would increase by an average of $370.29. That is still well below the $4,558 increase residents would have seen if LIPA had won a court judgment.

For South Huntington, the increase in the residential tax assessment is a much more modest $22.57 per year for a home valued at $388,816.

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File photo by Lina Weingarten

Last week, the Town of Huntington announced the Long Island Power Authority agreed to provide an additional $3 million
to the town if a settlement were to go through. The money is in addition to the proposed settlement for the Northport Power Station tax certiorari case, according to a town press release.

After an Aug. 10 town public forum held at Heckscher Park, LIPA agreed to extend the deadline for the town to accept the latest settlement proposal on the Northport Power Station tax certiorari litigation to Thursday, Sept. 3, when the town will hold a public hearing via Zoom on the issue.

After the hearing, the board will vote on the settlement. According to town and LIPA officials, the additional $3 million is to reduce the impact of COVID-19 on Huntington residents.

“We recognize the challenge of the pandemic on the town’s finances and have accommodated their request for additional assistance in the first three years of the settlement,” LIPA officials said in an email statement. “The Northport-East Northport school board voted overwhelmingly to settle this long-standing litigation, and we believe we have made a fair offer for the town to move forward.”

Town Supervisor Chad Lupinacci (R) said in the release that the $3 million in additional payments will be made by LIPA to the town of $1 million per year in 2021 through 2023.

“While we were fortunate to be in a strong financial position when COVID-19 hit, the long-term impacts of this unprecedented economic crisis on our local economy and future government operations are not fully known,” the supervisor said.

Councilman Mark Cuthbertson (D) said he would continue to analyze the settlement “but any money that will go to the taxpayers is certainly a welcome development.”

Councilwoman Joan Cergol (D) said the money will soften any financial impacts of COVID-19 “and is certainly worthy of consideration in helping to protect and preserve vital town services and programs that our residents depend on and deserve, especially during these, and continuing difficult times.”

The proposed deal would reduce LIPA’s annual tax bill on the Northport power plant from $86 million to $46 million by 2027.

The public hearing will start at 6 p.m. on Sept. 3. Public comment may be submitted ahead of the forum at huntingtonny.gov/lipa-forum. The forum will livestream on Optimum 18, FIOS 38 and at huntingtonny.gov/featured-programs, where residents may sign up to speak during the forum.

The Town Board’s vote on the LIPA proposal will take place immediately after the public forum ends, and in addition to being livestreamed on Optimum and FIOS, it can be viewed at huntingtonny.gov/meetings.

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Northport power plant. File photo

After an Aug. 10 Town of Huntington public forum held at Heckscher Park, Long Island Power Authority agreed to extend the deadline for the town to accept the latest settlement proposal on the Northport Power Station tax certiorari litigation to Sept. 3.

“After receiving assurances from LIPA that the Aug. 11 deadline to accept the latest settlement proposal on the Northport power plant tax certiorari litigation would be extended to Sept. 3, the Town Board rescheduled both the second public forum on the LIPA proposal and the special Town Board meeting where they will vote on the offer for Thursday, Sept. 3,” a statement from the town read.

The second public forum on the proposal was originally scheduled for Sept. 16, and the Town Board meeting to vote was Sept. 29. Back in July, town Supervisor Chad Lupinacci (R) said he had hoped scheduling the two public forums and vote, despite being after the original deadline, would show LIPA “that they know all parties involved are serious and we are vetting this agreement out.” In turn, the goal was for LIPA to extend the settlement proposal deadline. While LIPA officials said in a statement they believe their offer is fair, they agreed it made sense to work with the town.

“LIPA’s settlement is a fair compromise, and it is the only option that will continue low taxes for the Northport community, protect Huntington residents from over $800 million of potential tax refunds, and begin the transition to a sustainable tax base and clean energy future for all Long Island residents,” a statement from LIPA read. “We believe the Huntington Town Board made a good faith effort with their decision to provide a second public forum, along with a vote on the Northport Power Station settlement agreement on Sept. 3. Because of this, LIPA has agreed to extend the terms of our settlement offer through the board’s Sept. 3 meeting.”

The proposed deal, which was approved by the Northport-East Northport school board last month, would reduce LIPA’s annual tax bill on the Northport power plant from $86 million to $46 million by 2027. The tax impact on residents would be lessened compared to the implications of a court verdict in LIPA’s favor, though several local state officials and candidates have decried what they see as LIPA’s attempts to reduce their own tax burden at the expense of homeowners.

Lupinacci said in an email statement Aug. 20 that a ruling against the town would not only devastate the school district but the whole town.

“Our residents and businesses cannot afford that type of financial loss, especially with how we have been hit by the COVID-19 crisis,” he said. “We requested litigation be paused during the pandemic and LIPA rejected that request; now time is running out for us to make a decision. I came into office in 2018 and promised to fight for a better deal than was on the table; we achieved that and then some, including terms no other municipality has ever received from LIPA in a tax certiorari litigation, thanks to the vigorous advocacy of our legal team on behalf of our residents. This deal protects us against tax challenges during the entire seven-year term of the deal, which could be extended to protect us for 12 years, and LIPA has agreed to pay $14.5 million directly to the Northport-East Northport School District, which is an unprecedented offer of funding that could be used to help preserve educational programs while the district plans for its future and offset potential tax increases to residents.”

The Sept. 3 public forum will begin at 6 p.m. and will occur entirely online using a Zoom video conferencing platform. Public comments can be submitted ahead of the forum at huntingtonny.gov/lipa-forum. The Aug. 11 forum video can be viewed on the town’s website, huntingtonny.gov.

 

 

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Thomas Spota file photo

Ethical behavior has always been required and expected of government officials. In the pages of our newspapers, we are reporting on corruption cases, conflicts of interest and varying degrees of unfair, immoral and in some cases illegal practices in government — all levels of government. 

As one elected official recently stated, there’s a lot of this going on. You see it on federal, state and local levels of both major political parties and we need to eliminate that. 

An administrator in the Village of Northport recently pleaded guilty to using village funds as his “personal piggy bank,” according to Tim Sini (D), Suffolk County district attorney. Former county DA, Tom Spota (D), and one of his top aides were convicted of obstruction of justice and witness tampering. 

We are learning that the New York State Public Service Commission lacks oversight of the Long Island Power Authority, which can easily lead to abuse. Lawmakers are now looking to address that omission. We are not saying LIPA is corrupt, but if fraud is detected through agency audits, officials say they currently can’t take action. And with impeachment proceedings moving forward in the White House, there’s no shortage of examples of issues that deserve our attention. 

What exactly is corruption? It’s when elected officials steer contracts or use public policies and practices for their own personal benefit rather than the public good. When a government agency steers contracts to its family members, clients and business partners or to family members affiliated with these groups, it’s a red flag.

Corruption can, and often does, lead to fraud, wasteful spending and higher operational costs for government that you ultimately pay for personally. The costs are hard to quantify, but said to be significant. The state comptrollers office reports that over 215 arrests have been made and over $60 million recovered. 

Citizens need to sit up and pay close attention. Attend meetings, file Freedom of Information Act requests, look at government contracts, look at campaign contribution filings, demand transparency and ask for town hall-style meetings from your elected officials. If they’re not responsive, elect new officials. 

Among the best remedies known to prevent and beat corrupt practices is keeping citizens informed and engaged.

It may be tempting to look the other way and give officials a pass. It’s certainly easier. But turning a blind eye on corruption only breeds malfeasance. It’s about the worst response there is. Corruption ultimately corrodes the fabric of society and undermines people’s trust in their political systems and leaders. According to Transparency International, a global coalition against corruption, it can cost people freedom, health, money and sometimes even their lives. 

As governments struggle with budget deficits and aim to address urgent issues, the prudent thing to do is hold government officials accountable. We can’t fall asleep at the wheel. We the people need to make a point to stay engaged and informed in the new year and demand good government on all levels. 

State officials encourage the public to fight fraud and abuse. To report suspected abuse, call the comptrollers office at 1-888-672-4555 or email [email protected]

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Northport residents protest LIPA's ongoing lawsuit with the Town of Huntington. Photo by Donna Deedy

By Donna Deedy

On a sunny Sunday afternoon, more than 100 residents of all ages, including many families with young children and pets, attended another public rally against Long Island Power Authority. At one point, their chant filled Cow Harbor Park in Northport village where they gathered April 7. 

“Stop LIPA now,” they repeated in protest.  

The power authority, a quasi-governmental state agency, is suing the Town of Huntington to reduce its $82 million property tax burden by 90 percent. LIPA, since the state’s public bailout of LILCO, and its failed Shoreham nuclear power plant project, has been paying the property taxes for power stations now owned by National Grid.  

Northport power plant. File photo

Protest organizer Paul Darrigo formed a Facebook advocacy group called Concerned Taxpayers Against LIPA in mid-March, whose membership now totals more than 3,000 people. His group is concerned that if LIPA is successful it would devastate the Northport-East Northport school district, which currently receives $54 million annually from LIPA.

Northport village residents Kathleen and James Wansor have two very young children and attended the rally to learn more about the situation. Funding for education is important to the young family.

“It doesn’t make sense and it doesn’t seem fair for us to all of a sudden see increases in our taxes,” Wansor said. 

Darrigo’s group is also reaching out to people across Long Island. 

“I want to coordinate our efforts with the residents of Island Park, whose school district is also under assault due to LIPA’s tax certiorari filed in Nassau County,” he said. “The objective is to communicate with LIPA and our elected officials with a consistent message and reiterate a ‘strength in numbers’ mantra.” 

New York State Sen. Jim Gaughran (D-Northport) was among the elected officials who addressed the Northport crowd. He’s currently calling for LIPA reforms. 

“LIPA is a runaway authority that is not serving the public’s interest with their frivolous lawsuit. As I’ve said to LIPA, LIPA should uphold the promise that was made to my constituents and that the tax certiorari challenge should be dropped. Anything short of that would be detrimental to the vitality of the communities that I serve and would have a direct impact on their ability to provide indispensable programs and services.”

“The objective is to communicate with LIPA and our elected officials with a consistent message and reiterate a ‘strength in numbers’ mantra.”

— Paul Darrigo

But elected officials on different levels of government lack a firm position on the issue. Both County Executive Steve Bellone (D) and Gov. Andrew M. Cuomo (D) offered similar public comments on the LIPA tax lawsuit against Huntington.

“While we do not comment on pending litigation, we are monitoring the situation closely,” said Jordan Levine, deputy communications director for energy and the environment with the office of the governor. “It is our hope that LIPA and the Town of Huntington can reach a mutually beneficial agreement that is fair and beneficial to all parties.” 

Northport Village Deputy Mayor Tom Kehoe is particularly critical of the state’s position. 

“The governor better wake up and jump in on this,” he said. “People are mad.” 

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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.

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The Port Jefferson Power Station may soon be repurposed. Photo by Alex Petroski

The Village of Port Jefferson is soon putting a lengthy legal battle with Long Island Power Authority in its rearview mirror, though the future of the property that houses Port Jefferson Power Station is still on the road ahead.

Bob Foxen, chief executive officer of Global Common LLC, a company dedicated to establishing energy partnerships and projects beneficial to its clients, was contracted by the village to study alternative future uses for the site. He presented options to the village board of trustees during a brainstorming session at a public meeting Sept. 17.

“I guess the goal is to try, to the degree possible, to make the people of Port Jefferson whole, or close to whole, assuming they lose some tax revenue,” Foxen said during his presentation.

Village Mayor Margot Garant expressed an interest for the village to formulate a plan of action for the site.

“Once we have our tax grievance settlement behind us, or we know that we’re at kind of a pause, the next question is ‘Now what?’” she said. “We want to advocate for a repurposing of the site to keep us viable on the grid.”

The village is among the municipalities preparing to imminently announce settlement terms with LIPA to resolve near-decade-long litigation regarding the property tax assessment of the plant, which the utility has argued is too high based on decreasing energy demand. Port Jeff has advocated for the refurbishment and repowering of its baseload plant to update its decades-old technology and to justify the property’s tax assessment.

By 2027, the power purchase agreement between LIPA and National Grid expires, and to resolve the tax certiorari challenges, LIPA negotiated with the village a nine-year “glide path” for tax revenue reductions to coincide with the agreement expiration, according to village attorney Brian Egan. The glide path includes gradual percentage reductions in assessed valuation on the property, deeming baseload repowering an unlikely future outcome. In addition, Caithness Energy LLC’s 2014 plans to construct a new 600-megawatt plant in Yaphank were revived temporarily by Town of Brookhaven’s town board this past summer, though the expiration of the company’s special-use permit for the site has put the plans back in doubt. If constructed, the Yaphank plant would further cloud the future of the Port Jeff plant.

Foxen admitted the options he brought ready to present during the meeting were dependent on Caithness II never getting off the ground, an outcome that is very much in doubt. The options also consider New York Gov. Andrew Cuomo’s (D) stated goal from 2016 that 50 percent of the state’s power come from renewable sources by 2030.

The consultant suggested turning the site into a 200- to 300-megawatt plant powered by peaking units or smaller energy generation systems capable of firing up only in times of high demand, as its best option. The units operate using gas or liquid fuel, though they are viewed as efficient supplements to renewable energy sources like wind and solar, which can’t handle demand on their own.

“I think it does help support renewables,” Foxen said of peaking unit plants, adding that financing the work needed to repurpose the site in this way would be hard to establish without a new power purchasing agreement with LIPA. Village officials are set to meet Sept. 20 with representatives from private Finnish company Wartsila to discuss the feasibility of installing peaking unit technology at the Port Jeff plant.

Foxen’s other brainstormed options included establishing the village as a municipal electrical utility, meaning it would assume control of energy distribution from the plant to customers to power homes, though he called the option costly and time consuming; and taking over energy distribution and limiting it to private customers at a reduced rate for businesses in specific industries that have high-energy demand, like data storage centers, for example, which could even be housed on the vacant site.

“It would be kind of an interesting magnet for a data center or somebody like that — saving money on energy might be a draw,” Foxen said.

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