Local Assemblyman Criticizes PSEG/LIPA Plan

Assemblyman Fred W. Thiele, Jr. (I-D-WF-Sag Harbor) sent a press release on Monday criticizing the PSEG/LIPA plan to increase the delivery charge by nearly 4% for the next three years.

The plan, according to the release, would increase PSEG revenue by $72 million per year from 2016 to 2018. Total bills would increase 2%.

The PSEG bill is divided into two parts: a delivery charge and a fuel supply charge, which each constitute roughly 50% of the monthly utility bill.

From September to December the fuel supply charge has risen 81%, far above the actual cost of fuel.

According to the release, PSEG is now proposing to increase the delivery charge by 3.8% a year for the next three years.

LIPA increased the delivery charge only twice over the last 16 years, both times by less than 2%, making this the largest increase in the delivery charge in the history of LIPA.

“When the LIPA Reform Act was signed and a three year rate freeze was promised, we were told, ‘You have to operate the utility better LIPA’s answer to everything is more money. We don’t have more money. You can’t keep putting your hand in the pocket of the ratepayers. That’s not the answer. The answer is, use the money you have better.’’, Thiele said.

According to Thiele, the LIPA rate plan does not include the costs associated with its Utility 2.0 Plan and its Revenue Decoupling proposal which could add more than $100 million in additional costs.

“Rates are up, debt is up, renewable energy is down,” Thiele said.