LIPA Rate Hikes Cause Concern for Library Board

A recent increase in LIPA rates was one of the main topics of discussion at the Sayville Public Library Board meeting on June 13 as the price hikes could result in a $3,000 yearly increase for the library.

According to Alice Lepore, library director, a business office employee noticed an increase in one line of the LIPA bill called Basic Service under Deliver & System Charges -- from $0.94 a day to $10. The monthly charge on that line increased from $29.40 on one bill to $390 on the next.

“Contacting LIPA did not provide a good reason for a 10-fold increase in the Basic Service line,” Lepore told Patch. “Sayville Library then sent a letter to the chief operating officer, the chief financial officer, vice president of customer services and chairman of the LIPA Board of Trustees. The response was a visit by the local LIPA representative. The representative said that customers in the ‘Rate 285-Secondary, Commercial, Large, Multiple Periods’ category received this increase (usage of over 2,000 kw per month qualifies for Rate 285).”

The power supply charges can be increased without the permission of the Public Services Commission, which approved the 10-fold increase for Rate 285 customers. The representative told the library that this is a tariff approved by the Public Service Commission and is non-negotiable.  LIPA has $74 million in costs that it is facing.

“An increase for a public service organization will eventually be passed on to the taxpayers, just like the MTA tax,” Lepore said. “LIPA does not seem to have a rate for public entities. They are classified by usage. This increase will eat into the savings the library has realized with the energy generated from the solar panels on the roof. Without the solar panel savings, there would be more of an impact. Suffolk Libraries affected by this change will be talking about this increase and investigating any options available to them.”

In response, a LIPA spokesperson said that the library should see a net decrease based on their electric usage.“As announced as part of LIPA’s 2011 Operating and Capital budgets, the average commercial customer received a total bill reduction of approximately 2.4 percent. This bill reduction encompassed on average a 5.5 percent overall bill reduction in the Power Supply Charge, a 2 percent overall bill increase in the Delivery & System Charges (first increase since 1998) and 1.2 percent increase in the Efficiency and Renewables Charge. While the Sayville Library is referring to one component of their bill that increased in March 2011, they are not taking into account the bill decrease they received in January 2011.  The total effect to their bills should be a net decrease based on their electric usage."
 
"In addition, LIPA worked collaboratively with the Sayville Library to install a 63 kW solar system in November 2009," the LIPA spokesperson continued. "LIPA provided a $158,000 rebate to the Library to pay for that system. It is estimated that the Library is saving $12,800 per year from the installation of the PV system.”

Check Patch later to get details on library programs, which were also discussed at the meeting.