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Deputy Superintendent Sean Leister. Photo by Kyle Barr

While the Port Jefferson School District is preparing its budget for the 2019-20 school year, the shadow of LIPA still hangs over the small school district.

Superintendent Paul Casciano said the LIPA outcome, at least in terms of drafting next year’s budget, was not as bad as it could have been. 

“It was translated by the town to be on the assessment rather than our payments,” he said. “With the glide path it gets more challenging later on, but we have time to make adjustments.”

“With the glide path it gets more challenging later on, but we have time to make adjustments.”

— Paul Casciano

In December 2018, the Town of Brookhaven settled with LIPA over the tax assessment of the Port Jefferson power station whose white and red smokestacks can be seen almost anywhere near the harbor. LIPA filed a lawsuit almost a decade ago against both Brookhaven and the Town of Huntington saying its plants in Port Jeff and Northport have been overassessed by millions of dollars and were seeking a 50 percent reduction. The settlement decision agreed to lower LIPA’s assessments by 50 percent over a nine-year period from $32.6 million to $16.8 million starting with the 2017-18 tax year.

Even after the settlement, district officials said the Port Jefferson School District would have the second lowest school tax rates compared to others in Brookhaven Town, only being beaten by Riverhead. The district, going into the ninth year of the settlement, would have a tax rate approximately 100 less than the average of non-Port Jefferson school rates, according to the district.

The school district, along with several village residents, feared what a 50 percent reduction could do to school taxes. Casciano, along with Deputy Superintendent Sean Leister, hosted a special meeting for district residents where they estimated a tax rate of 159 in the 2019-20 school year, and an estimated 243 by the 2026-27 school year.

If local revenues remain flat and with their expected tax levy cap sitting at 1.18 percent, the district expects their current $43.9 million budget will adjust to a $44.1 million rollover budget next school year, an increase of $232,930 if the district maintains all current programming and staff. The current school tax levy — the money a school makes in local area taxes — of $36,434,479 would jump to $37,075,627, more than the schools expected 1.2 percent tax cap.

Leister said this would mean reductions, but the district is currently in the process of creating the upcoming school year’s draft budget.

“We haven’t identified those reductions yet,” Leister said. “We are going to take the next few weeks to see if it can be done through efficiencies: We have to identify what our enrollment looks like, what our student interest looks like and what our scheduling looks like.”

Casciano said this difference is minimal, and it can be made up on the school’s end by tighter budgeting.

“If the community stays in support of the district, it won’t be as dramatic,” the superintendent said. “If the school has to absorb the entire cost of the tax loss, it will be.”

“A cynic would look at it and say you’re just trying to dampen any resistance in the short term and pushing it back.”

— Todd Pittinsky

Before news of the settlement, residents had proposed that the district combine with other area districts, but Leister said that combining with a district like Comsewogue or Mount Sinai would overall increase tax rates. Port Jefferson’s estimated tax rate in the 2019-20 school year is 159 compared to Comsewogue’s 262, assuming an annual levy increase of 2 percent, or under the New York State tax cap.

While the difference is minimal for this school year, the district said the glide path of LIPA’s assessment reduction ramps up over time. While the 2020-21 and 2021-22 school years see a 3.5 percent reduction, later years show reductions going up to 7.5 and 8.25 percent.

Todd Pittinsky, a Port Jeff resident and professor in the Department of Technology and Society at Stony Brook University, said it would behoove the district to think long term when it comes to the reductions over time, and not make those cuts more drastic when the reductions start to increase dramatically.

“A cynic would look at it and say you’re just trying to dampen any resistance in the short term and pushing it back,” Pittinsky said. “I would hope that the effort is one-eighth each year. The formula you are using is going to push back the pain of dislocation or relocation, and it would be very easy to think that other decision makers will be in this role.”

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The LIPA plant as seen from Harborfront Park. Photo by Kyle Barr

A New York State Supreme Court judge approved the Town of Brookhaven’s settlement with the Long Island Power Authority over the Port Jefferson Power Station’s tax assessment. 

In the agreement signed Dec. 14, the $32.6 million tax assessment on the power plant will be reduced by around 50 percent incrementally over the next nine years to $16.8 million, starting with the 2017-18 tax year.

It’s a not-so-final finale to what has become years upon years of grinding legal battles and anxiety over what will happen to local taxes should LIPA, which claimed its power plant has been overassessed by hundreds of millions of dollars for nearly a decade. LIPA’s lawsuit wanted its assessments reduced by
approximately 90 percent.

Town of Brookhaven Supervisor Ed Romaine (R) said in a statement the settlement will benefit Brookhaven in the form of lower electric bills.

“This deal puts an end to the uncertainty of this plant over the course of nine years and gives finality to this issue,” Romaine said. “I have always believed that all property assessments should be fairly based on property value.”

Brookhaven officials said that without a settlement, taxpayers faced the potential of being liable for $225 million to LIPA, and the power authority has said LIPA customers will save a total of $662 million by 2027.

“It was a reasonable settlement, one we can justify to our 1.1 million customers,” LIPA CEO Thomas Falcone said.

While this settlement promises savings for Brookhaven residents, the agreement has made Port Jefferson residents, especially those living close to the two red-and-white smokestacks, question what their taxes will look like in the near future. In October the Port Jefferson School District released a series of slides showing they annually received a $17 million payment through LIPA’s tax payments, but this would be reduced to $13.8 million by 2027. While Superintendent Paul Casciano said he and his staff are still reviewing the impact of the settlement, he sees the outcome could be even worse. He expects school programs will have to be cut in the next few years, with tax increases for residents.

“It’s going to affect the tax base,” the superintendent said. “Even if our budget was voted down, there’s a high likelihood that residents will see a
double-digit increase in their tax rate.”

The settlement will also require the district to amend their plans for the 2019-20 budget next year.

Falcone said the school district already enjoys lower annual school taxes at $6,273 compared to neighboring districts calculated at little more than $10,000 based on 2015 tax data.

“It means they will go from a ‘great deal’ to a ‘good deal,’” Falcone said. “They’re still going to have the lowest taxes of their neighborhood.”

The CEO added that it was unfair for the rest of LIPA customers to have to subsidize the Port Jeff school district through their higher bills.

“I think at some point you have to say what’s fair for those 1.1 million other customers because they pay their school taxes, too,” he said.

The Port Jeff superintendent said the village has been conciliatory about letting a power plant operate within its boundaries, whereas other places in Brookhaven would have barred the plant from existing in the first place.

“Are you, as a Brookhaven resident, really going to make out on your LIPA bills? I doubt it,” Casciano said. 

In April Port Jefferson Village board passed its 2018-19 budget of $10,642,146, about $233,000 up from last year’s budget. The new budget included $107,000 in reserve funds in anticipation of the glide path agreement with LIPA resulting in reduced payments.

Village Mayor Margot Garant said she agrees with the settlement, and it could lead to more use of the plant. In 2017 the facility was only powered on for 41 days, or 11 percent of the year, according to LIPA officials.

Falcone said the Port Jeff power plant operates based on the electricity needs of residents.

“This is an important step we made today to stabilize our tax base moving forward and the viability of any opportunity to repower our power plant,” Garant said in a press release.

The settlement also comes after big wins for LIPA in the courts against the towns of Huntington and Brookhaven, and Port Jeff Village, allowing LIPA to move ahead with its effort to challenge its assessments. Huntington Supervisor Chad Lupinacci (R) has publicly asked New York State Gov. Andrew Cuomo (D) to enact legislation that would protect residents taxes should LIPA get its way in court.

“Are you, as a Brookhaven resident, really going to make out on your LIPA bills? I doubt it.”
— Paul Casino

PSEG Long Island customers pay power plant taxes through monthly surcharges on their electric bills, but LIPA owns the electric grid and has agreements with National Grid for the power plants in both Port Jefferson and Northport. In 2009 LIPA challenged both the towns of Brookhaven and Huntington saying it had been overassessed for years, especially since the Port Jeff plant runs for so little time.

The Port Jefferson School District along with the Northport-East Northport school district and Huntington Town filed a lawsuit saying LIPA had made past promises not to challenge the taxes levied on their power plants, but they were dealt a blow in September when a state Supreme Court judge ruled LIPA “made no promises” about challenging the taxes levied. 

Garant and other Port Jeff Village officials have expressed past desires to renovate the power plant once the tax assessment issue was settled.
In September the village board advocated for the refurbishment and repowering of its base-load plant to update its decades-old technology and to justify the property’s tax assessment.

This is despite Cuomo setting a goal for 50 percent of the state’s energy to come from renewable sources
by 2030.

Falcone said they do not currently have any plans to run the plant more or do any renovations to plant that has been there since the 1940s. 

Through being used so little and with the push for more green energy, residents have questioned how long LIPA will keep the plant running. The LIPA CEO said the plant will continue to operate for the next seven years, but in the future could be upgraded or transformed into some other space used by the power authority, such as a storage facility or a new, modernized facility.

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Brookhaven Supervisor Ed Romaine and the town board have taken steps that would allow the construction of a power plant in Yaphank, complicating the status of Port Jefferson's LIPA-run plant. File photos by Alex Petroski

It’s one step forward, two steps back for Caithness Energy, LLC in Brookhaven.

After securing a win in its efforts to advance the construction of a 600-megawatt power plant in Yaphank earlier this month, Caithness Energy LLC, an independent, privately held power producer informed by Brookhaven Town its special use permit for the site expired July 15.

The special use permit, initially approved in 2014,  granted Caithness permission to build a power plant on the site, according to Town Attorney Annette Eaderesto. It was granted for two years and  one-year extensions were approved twice, which is the limit under town law.

“We’re looking into it, but believe it has no bearing and we look forward to the next steps before the Planning Board,” Caithness President Ross Ain said in a statement.

The possibility that the permit might have expired was first raised by Councilwoman Valerie Cartright (D-Port Jefferson Station) during a July 12 meeting. She abstained from voting on a motion to lift a restrictive covenant preventing the project’s advancement due to amendments made to Caithness’ original 2014 plans, which included a reduction to the plant’s output capacity and updated technology. The other five councilmembers and Supervisor Ed Romaine (R) voted to remove the covenant.

“They’ll have to file a new application for the special permit and we’ll certainly accept it,” Eaderesto said.
The town attorney noted Caithness still has a pending site plan application before the Planning Board, which would remain as such as a new special use permit is sought.

The proposed project has drawn opposition for its potential environmental impact from groups like Sierra Club Long Island and state Assemblyman Steve Englebright (D-Setauket).

In addition, Port Jefferson Village Mayor Margot Garant has spoken out against the proposal, warning the construction of a second Caithness plant could push her community “off the economic cliff.”

The village has argued a way to make good with Long Island Power Authority over its decreasingly needed plant — and LIPA’s legal contention its Port Jeff plant’s property tax value is over-assessed and has been for years — could be to increase its output capacity. If constructed, the Caithness II plant, which would be built nearby the company’s first Yaphank plant opened in 2009, could theoretically kill plans to repower the Port Jefferson plan, according to the village.

Port Jeff Village and the town have said a settlement is nearing in an eight-year-long legal fight with LIPA, that will likely result in a gradual decrease in revenue from the plant’s property taxes, which help fund budgets for the village, Port Jefferson School District, the fire department and the public library.

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Extreme low temperatures caused enough demand to require use of the Port Jefferson Power Station. File photo by Erika Karp

In Port Jefferson, the stacks are impossible to miss. They stick up in the sky, visible from Setauket and Port Jefferson Station when not in use. However, when electricity demand spikes, the billowing, white steam coming from the red-and-white, candy-striped stacks of the Port Jefferson Power Station is a sight to behold.

With the emergence of energy-efficient appliances and a general societal shift toward being “green conscious,” the power station is only activated in times of peak electricity demand these days, like when temperatures and wind chills start flirting with zero. From late December into early January, the New York office of the National Weather Service reported that for 13 straight days, ending Jan. 9, the maximum temperature at Long Island MacArthur Airport in Islip failed to exceed 32 F. It was the second longest period of below-freezing temperatures reported at the airport since 1963.

As a result of an Island-wide rush to crank up thermostats everyday from Dec. 27 through Jan. 10, the steam-powered electrical generation station was ready to go, serving as an addendum to the Island’s regularly used energy production. In 2017, the Port Jeff plant was operated for 1,698 hours through November, with an additional 260 hours of run time needed in December, according to Sid Nathan, director of public information for the Long Island Power Authority, which oversees operation of the station.

When running, its two steam units produce the white clouds or water vapor, which is a byproduct of burning oil or gas. As the vapor exits the stacks, contact with colder air causes condensation of the water vapor, producing the cloudlike white color. The two steam units ran for 1,958 hours in 2017, the equivalent of running for 41 days, or 11 percent of the year, Nathan said. The power station has the ability to generate about 400 megawatts of power.

The historic stretch of cold temperatures definitely generated an unusually high energy demand at the station, according to Nathan.

“Generally, on a typical 35 degree day, PSEG Long Island would not expect to dispatch the Port Jefferson plant,” he said.

For those concerned about the white steam yielded by the energy generation process, Nathan said the station is not producing more or different steam than normal and that the byproduct is more visible at extremely low ambient temperatures.

“There is no cause for concern,” Nathan said.

State Assemblyman Steve Englebright (D-Setauket) said the white smoke is mostly steam that could potentially contain particulates other than steam, and he reiterated residents shouldn’t be overly concerned. Although Englebright did say it would be “prudent to try to separate yourself from the atmospherics of the plant.”

As a North Shore resident and chair of the Assembly Committee on Environmental Conservation, Englebright said he was thankful the plant was ready to roll when needed most.

“Yes, during most of the year they are not in use,” Englebright said, of the stacks. “But when we really need it, it’s there. And we really needed it just in this cold spell and it went into high operation. Thank God it was there.”

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The Shoreham power plant on North Country Road provides peak power to the community and payments in lieu of taxes to the Shoreham-Wading River school district. Photo from Jason White

A Brookhaven organization recently saved energy in the most literal sense, and a reliable revenue stream too.

The Town of Brookhaven Industrial Development Agency (IDA) announced Nov. 27 it prevented the shutdown of an electric-generating plant in Shoreham, which provides peak power to the community and is expected to contribute $852,000 in property taxes or payments in lieu of taxes, commonly known as PILOTs, to the Shoreham-Wading River school district this year.

Brookhaven’s business arm has entered into a new, 20-year PILOT agreement with owners of the 90 megawatt, jet-fueled facility located on 10 acres of land on North Country Road, leased by the Long Island Power Authority. The facility’s previous PILOT and power purchase agreement between LIPA and Brookhaven expired this past August after 15 years.

In the proposal for the PILOT, which became the adopted policy when it was approved by the IDA in January 2017, projected gradual benefits range from $1.2 million in its first year to $1.7 million in its 20th.

The partnership began in September 2016 when members of J-Power USA — owners of the facility since 2010 — realized the expired pact would bring about a 33 percent reduction in revenue and a 50 percent reduction in economic benefits. The members were also told by LIPA representatives that the nonprofit would not be involved in negotiating a new PILOT.

“We wanted to see if Brookhaven would be able to offer a new PILOT that would  allow us to remain financially viable and our agreement has removed that big uncertainty,” said Jason White, director of asset management at the J-Power Shoreham branch. “Our facility uses General Electric combustion
turbines and while it doesn’t operate a lot, it’s important to the electric grid for stability purposes. It’s maintained so that it can respond very quickly if it’s called upon.”

White said although there had to be consideration to disassemble the power plant and move off Long Island in the case an agreement couldn’t be reached, it wouldn’t be a simple process, and the facility’s six
employees live close by.

“Our preference all along was to continue to operate the plant site and to continue to be a contributor to the local community,” White said.

By securing the power plant’s place in Shoreham, revenue is boosted for the school district, which relies heavily on it as a source of both energy and property tax revenue.

“I am pleased that we have been able to close on this new agreement with J-Power,” said Frederick Braun, chairman of the IDA. “Had we been unable to keep this plant from moving off Long Island with this new agreement, the Shoreham School District and other taxing jurisdictions would receive no payments at all, resulting in an even larger loss to those taxing jurisdictions.”

The school district, which included the finalization of $852,000 in PILOT revenue in its Revised and Lowered Expenditure Budget & Tax Levy in October, approved the agreement in a resolution during a board meeting last Jan. 10.

“Be it resolved that the Board of Education of the Shoreham-Wading River Central School District supports the proposed financial assistance contemplated by the Brookhaven Industrial Development Agency in connection with the J-Power Peaker Plant,” the letter read.

Lisa Mulligan, the IDA’s chief executive officer, said she had been in contact with the district’s board of education since meetings began with J-Power “as they were the most impacted by this.”

“We didn’t want to pursue something if they were not interested in it,” Mulligan said. “But the board wrote to us and told us they were … I think it’s important to bring money into the school district and also provide this power to residents when it’s needed.”

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The Port Jefferson power plant sits along the edge of Port Jefferson Harbor. Photo by Elana Glowatz

A provision in the new state budget sets aside $30 million that could support communities where a power plant has closed and stopped paying property taxes.

According to the budget bill that state lawmakers agreed upon last week, that sum would be available for a local government, school district or special district — such as a library or fire district — where an electric generating facility has stopped operating, causing a reduction of at least 20 percent of the money it owed through property taxes or payments in lieu of taxes, commonly known as PILOTs.

There are limits to the provision, however: The bill says the New York State Urban Development Corporation will distribute the relief funds on a first-come, first-served basis and will not offer the support to a specific group for more than five years. Additionally, in the first of the five years, the corporation will not award funding equal to more than 80 percent of the local entity’s lost revenue.

Port Jefferson Village could possibly be on the receiving end of some of the $30 million in the pot, dubbed the “electric generation facility cessation mitigation fund.” That community’s power plant — which company National Grid owns and operates, and sells the power generated to utility PSEG Long Island for distribution — is old and runs on antiquated technology. For the past several years, village residents have waited to learn the fate of the plant, whether it will be reconstructed to keep serving Long Island or dismantled.

A lot hangs in the balance for the plant’s neighbors: Property taxes from the site fund more than 40 percent of the local school district’s budget and a significant portion of the Port Jefferson Village budget.

“We’d soak up a lot of it,” village Trustee Larry LaPointe said about the relief fund, noting that his government’s budget gets about $1 million in property taxes from the local power plant in addition to the school district’s hefty share. “But we certainly appreciate any efforts” to help mitigate the impact on the community.

The state budget provision specifies that local entities seeking assistance, once a power plant’s owner serves official notice it plans to retire the facility, will be helped in the order they apply for relief, but only after the facilities go offline. The urban development corporation will decide the amount of the annual assistance payments based upon how much revenue is lost.

Port Jefferson schools currently get more than $18 million from the plant, between taxes and PILOTs. Superintendent Ken Bossert said, “We are hoping that a resolution can be found that will not place an unfair burden on the home and business owners … in order to maintain the excellence of the school district.”

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Extreme low temperatures caused enough demand to require use of the Port Jefferson Power Station. File photo by Erika Karp

Port Jefferson Village moved another chess piece in its match against the Long Island Power Authority last week, filing a lawsuit to dispute the utility’s property tax challenges from the last few years, which are still pending in court.

Village Attorney Brian Egan said at the board of trustees meeting Tuesday night that the village filed the lawsuit last Friday contending LIPA had promised not to challenge its property tax assessment at the Port Jefferson power plant unless the assessment was disproportionately increased.

That perceived promise links back to a 1997 letter from former LIPA chairman Richard Kessel, upon inking a power supply agreement between LIPA and the Long Island Lighting Company, as the former was taking over for the latter. That agreement covered power plants now owned and operated by energy company National Grid, which includes those in Port Jefferson and Northport.

Back then LIPA and local municipalities were embroiled in other tax assessment challenges. Kessel’s letter said the utility would drop those challenges and would not “initiate any further tax certiorari cases on any of their respective properties at any time in the future unless a municipality abusively increases its assessment rate.”

Port Jefferson has actually gone in the opposite direction on the neighborhood power plant’s assessment, officials confirmed Tuesday — LIPA’s assessment was only proportionately increased over time, and since it began challenging its assessment in 2010, it has in fact seen a decrease. Officials called that 10 percent decrease an act of good faith as they negotiated with the utility on the matter.

At the heart of the issue is a disagreement over the worth of the local power plant: LIPA contends it is grossly overassessed, forcing the utility to pay more in property taxes than it should.

The power plant is a large source of tax revenue for the area, particularly the Port Jefferson school district and the village. Smaller stakeholders include the Port Jefferson fire and library districts and the Town of Brookhaven.

As LIPA’s property tax challenges trickle through the court system, Port Jefferson’s latest lawsuit piggybacks on an idea from out west — Huntington Town and the Northport-East Northport school district filed a similar suit a couple of years ago in their battle on the Northport power plant, which mirrors the situation in Port Jefferson. That inceptive lawsuit, challenging LIPA’s ability to challenge its property tax assessment, faced a motion to dismiss that New York State’s highest court recently denied — allowing the case to play out. Seeing the ruling in favor of Huntington and Northport, Port Jefferson followed suit.

“I feel very strong,” Egan said about the case.

According to the village attorney, he will ask that court action on LIPA’s tax challenges be delayed until the new lawsuit is resolved.

The Port Jefferson and Huntington area lawsuits may also be joined, and it is possible more plaintiffs, such as Brookhaven Town and the Port Jefferson school district, could jump in.

At the time the courts denied LIPA’s motion to dismiss Huntington Town and the Northport school district’s lawsuit, a LIPA spokesperson said the utility does not comment on ongoing litigation.

If the municipalities win their lawsuits regarding LIPA’s right to challenge its property tax assessments, those pending challenges would be thrown out.

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State appellate court sides with municipalities in rulings

Northport power plant. File photo

Huntington Town and Northport-East Northport school district’s fight to knock the lights out of a Long Island Power Authority lawsuit that looks to drastically decrease how much the utility pays in taxes on the Northport power plant recently got a big boost.

Last week, a New York State appellate court ruled in favor of the municipalities, clearing the way for both to go to trial against the utility and engage in pretrial depositions and discovery. In 2010, LIPA filed a tax certiorari lawsuit against the town, claiming the town greatly over-assessed the Northport power plant and that it should be paying millions less in taxes.

Northport-East Northport schools, along with Huntington Town, filed companion lawsuits in May 2011 that claimed LIPA didn’t have the right to file to reduce its taxes and that it breached a 1997 contract promising it wouldn’t. In 2013, a New York State Supreme Court justice upheld the district and town’s rights to sue LIPA and National Grid, and last week’s court ruling upheld that lower court ruling.

LIPA sought to have the school district tossed out of the suit, but the district claimed it was a legal third-party beneficiary of a 1997 power supply agreement between LIPA and the Long Island Lighting Company. Last week’s court ruling upheld that claim. It cites a 1997 letter from LIPA to the Nassau-Suffolk School Boards Association, to which Northport-East Northport belongs, that upon the issuance of a 1997 power supply agreement, “LIPA will immediately drop all tax certiorari cases against all municipalities and school districts,” and that “neither LIPA nor LILCO will initiate any further tax certiorari cases on any of their respective properties at any time in the future unless a municipality abusively increases its assessment rate,” as “spelled out in the [PSA].”

Stuart Besen, the town’s attorney on the case, said he believes the letter from Richard Kessel, former chairman of LIPA, was integral in swaying the judges to rule in favor of the municipalities.

“I just think that Supervisor [Frank] Petrone really deserves a lot of credit for having the foresight for one, making sure the clause was in the [power supply agreement], and two, demanding that Richard Kessel reiterate that position in a letter.”

If successful in the suit, the town wouldn’t have to pay approximately $180 million in taxes the utility claims it overpaid in a three-year period, Besen said. LIPA pays roughly $70 million in taxes on the Northport power plant, town officials have said.

The utility contends the plant is worth less than 11 percent of the value reflected by its current assessment. If LIPA was successful in lowering its assessment and thus the amount it pays in taxes, town residents could be hit with tax increases of up to 10 percent. Those who live in the Northport-East Northport school and library districts could get a whopping 50 percent increase in their taxes.

John Gross, senior managing partner at Ingerman Smith, who represents the school district in the case, said the next step is to move forward with discovery and a motion for summary judgment in favor of the district.

“And if we win that, that means the claims they made to reduce the value of the plant are thrown out,” Gross said in an interview on Tuesday.

The town and the school district are partners in the lawsuit, Gross said.

Asked what town taxpayers should take away from the development, Besen said “that the town is fighting.”

“The town is fighting a big entity, both National Grid and LIPA. But we feel we’re right. We feel that those three years we don’t have to pay, that LIPA and National Grid made a promise to the people of Huntington and the town is going to do everything possible legally to uphold that promise.”

Sid Nathan, a spokesman for LIPA, said the authority couldn’t comment on ongoing litigation.

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Northport power plant. File photo

A new Huntington Town citizens group will boost a movement to upgrade the Northport power plant, independently studying the issue and submitting ideas to town officials.

The town board, on Tuesday, unanimously supported a measure co-sponsored by Huntington Town Supervisor Frank Petrone (D) and Councilman Mark Cuthbertson (D) to create the Repower Now Citizens Committee, a group of nine who will weigh in on an analysis the Long Island Power Authority and National Grid are conducting with respect to repowering, or upgrading, the plant.

Earlier this year, the state charged LIPA and National Grid with studying the feasibility of repowering the Northport power plant, the Port Jefferson power plant and others. Having the Repower Now Citizens Committee can only boost that effort, Cuthbertson and Petrone said in interviews with reporters after Tuesday’s meeting.

Local leaders want to see the aging Northport plant repowered so it will remain a source of energy and property tax revenue for years to come. Several local budgets, including that of the Northport-East Northport school district, rely heavily on the tax revenue.

Upgrading the Northport power plant can be done, Petrone said. It will be the new group’s responsibility to support repowering by producing a factual analysis on the issue.

“Our plant is probably the most viable plant to be utilized for that,” Petrone said, explaining Northport’s advantages in being repowered. “It has property available and it can be expanded. The need now is to put together a group to basically put some kind of study together … to support this. And there are many people out there that have expertise that we would wish to tap.”

Membership would include at least one person each from Northport and Asharoken villages, someone from the Northport-East Northport school district and members with engineering and sustainable energy backgrounds.

Repowering has another benefit: It may help settle a lawsuit LIPA brought against the town, challenging it over the value of the power plant.

LIPA claims the plant has been grossly over-assessed and the utility has overpaid taxes to the town. If LIPA’s suit is successful, the judgment could translate into double-digit tax increases for other Huntington Town and Northport-East Northport school district taxpayers.

If, however, the utility chooses to repower by upgrading the facility, the town has offered to keep its assessment flat, preventing those skyrocketing taxes.

“It’s a lawsuit that’s a very, very high-stakes lawsuit,” Cuthbertson told reporters after the meeting. “We have to look at both legal and political solutions, and political being through legislation. This is a part of trying to formulate a legislative solution and come up with a compromise that we might be able to work through.”

Petrone said he hopes to have the repowering citizens group assembled within a month.

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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

A clerical item on the Brookhaven Town Board’s agenda regarding Caithness Long Island II, a proposed Yaphank power plant, caused a stir among some Port Jefferson residents on Thursday, as they questioned what exactly the board was voting on.

Earlier in the week, Supervisor Ed Romaine (R) predicted the issue at a Monday work session meeting. The item — accepting documentation about covenants and restrictions at the project site — was included under the board’s Communication Consensus agenda. Romaine said the town received correspondence that the information was filed with the Suffolk County Clerk’s Office, and the board had to vote to accept it. He added that the Town Board was not trying to sneak anything by residents.

“We have to list correspondence that we receive,” he said Monday.

Last July, the Town Board granted Caithness Long Island II a special permit for its proposed 752-megawatt power plant. Romaine and Councilwoman Valerie Cartright (D-Port Jefferson Station) remained in the minority and voted against the permit.

Some Port Jefferson residents adamantly oppose the project, as they fear it could negatively impact the chances of the Port Jefferson power plant being upgraded. Critics allege the Caithness project’s environmental impact statement was flawed and didn’t adequately address impacts on the surrounding communities and species living near the property, which is adjacent to an existing 350-megawatt Caithness power plant.

At Thursday’s meeting, standing together in the minority as they did on the special permit vote, Cartright and Romaine voted against accepting the Caithness communication. Cartright said the project should be re-evaluated, as PSEG Long Island has stated there will be sufficient local energy capacity until about 2020, and thus there is no need for Caithness II.

“In light of that fact, it appears to me that the [environmental review] process was based on an erroneous premise, as the original … findings for this project were in part based on an additional need of power,” she said.

During public comment, Port Jefferson Village Trustee Bruce Miller expressed his frustration with the Town Board granting the special use permit and with how backup documents, which officials said are available at the town and county clerk’s offices, weren’t provided with Thursday’s agenda.

Miller said he sympathized with Medford residents, some of whom attended the same meeting to advocate against a proposed casino in their neighborhood.

“Only two people on this board are voted for by the people from Port Jefferson,” he said, referring to the supervisor and the councilwoman, “and yet the rest of the board members can vote with impunity against us and against our interests.”

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