The state has only "review and recommend" authority over LIPA, unlike other electric utilities across the state, where the Public Service Commission has ultimate authority. LIPA currently offers a program called Long Island Choice that allows customers to choose an outside energy service company, but critics say the choices are limited, the savings nonexistent and the programs little subscribed.
Even when customers do sign up, LIPA still handles delivery of the power to customers, and those charges continue to appear on the delivery portion of their bills. LIPA said four energy service companies, or ESCOs, are participating in its program, with 82 large customers and multiple smaller customers under the Altice umbrella. Critics say that while LIPA may appear to be in compliance with s-era deregulation mandates that opened the door for competitive energy markets and, in , to community-choice programs in the state, the costs it continues to pass along to customers who try to jump ship diminish potential savings so much that they make the alternative suppliers noncompetitive.
Brookhaven Town Supervisor Edward P. Romaine last week said he was considering requesting an audit of LIPA's cost claims surrounding its community-choice program, under a recently enacted state law by Assemb.
Jim Gaughran D-Northport that calls for audits of the utility in cases of alleged waste, fraud and abuse. Separately, Thiele said he is preparing legislation that would amend state public service law to give the Public Service Commission the authority to establish hard-and-fast rules for a community-choice program for Long Island that would supersede LIPA's highly criticized program. Few customers in the LIPA territory use third-party suppliers "because, for small customers, the benefits of retail access are basically nonexistent," due to those LIPA constraints, Gordon wrote in comments filed with the state.
Services News Government Local. Board of Trustees. Employment Opportunities. Electric Service Tariff. According to LIPA, less than 2, customers are supplied by alternate suppliers.
LIPA provides transmission and distribution service throughout a built-out territory that exhibits exceptionally strong demographics and very stable demand characteristics. As of YE , the authority served approximately 1. Both Nassau and Suffolk counties benefit from a broad and diverse economy, a well-educated workforce, and close proximity to New York City. LIPA does not serve any large energy-intensive customers, more typical of the industrial service class.
LIPA's rate flexibility is assessed as very strong despite retail rates that rank among the highest in the nation, and a history of pressure to moderate rate increases from ratepayers and local constituents alike.
Fitch's assessment focuses on LIPA's legal ability to determine rates, which, while influenced by recent reforms, has not been undermined. It also factors in the authority's improving rate competitiveness and affordability, as measured by average annual electric costs to income levels.
These include any rate proposal that seeks to increase delivery rates more than 2. Although the recommendations reduced LIPA's original three-year revenue request by The authority has not proposed a rate increase of more than 2. To the extent that increases exceeding 2. LIPA's rate flexibility is further supported by the regional competitiveness of its retail rates and the very high affordability of electric service. Moreover, despite the absolute level of rates, the affordability of LIPA electric service remains very high.
Electric rates incorporate a base delivery service charge, as well as a series of charges and riders designed to automatically recover fuel and purchased power expenditures, required PILOT payments, and costs related to energy efficiency and renewable resources.
Most of the recovery mechanisms are adjusted at least annually, including the authority's power supply charge, which is adjusted monthly. Together, these mechanisms should stabilize margins even during periods of higher demand and cost volatility. LIPA's comparatively high cost burden reflects, among other factors, the high cost structure and debt burden of the original acquisition, the inherent challenges of serving the island geography and PILOT payment requirements that are more than double the average of the Fitch-rated portfolio.
LIPA relies heavily on purchased resources to meet its energy demand and capacity requirements. Declining wholesale market prices and expanded access to regional energy markets moderated the cost of LIPA's energy supply in recent years by allowing the authority to displace more expensive generation from its PSA resources in favor of more economic energy purchases from independent power producers and short-term purchases in the regional electricity markets. The addition of several new system interconnections over the last decade significantly has increased LIPA's access to a broad range of off-island resources and improved LIPA's power supply diversity.
PILOT payments and assessments totaled 8. Including property taxes, aggregate payments were even higher totaling Even more meaningful reductions hinge on settlements with Nassau County.
LIPA's operating cost flexibility is assessed as neutral. As noted above, the authority worked to diversify its power supply mix, adding roughly 1,MW of purchased capacity from independent generating units located on Long Island and elsewhere.
LIPA's current portfolio of contracts includes roughly 30 individual agreements with expiration dates and capacity ranging between and and between 2MW and MW, respectively. On Wednesday, it issued a request for information to determine the level of interest from prospective outside companies who could take over the contract, or parts of it. The older version of the system that PSEG has resorted to is "no longer vendor supported and has more limited capabilities" than the newer version, LIPA said.
Andrew M. Cuomo, is stepping down after eight years. Vice chairman Mark Fischl will take on the chairman's role on an acting basis. We're almost nine months removed from Isaias and storm season is coming again like a proverbial freight train.
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