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Anti-LIPA coalition formed
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March 11, 2009 | 04:09 PM
Residents in a number of Long Island communities have banded together in a watchdog group opposing what they view as wasteful spending by the Long Island Power Authority.
Long Island Energy Surveillance is a "volunteer watchdog group of civic activists providing the sunlight Long Island ratepayers need to protect themselves from LIPA abuses," according to a release emailed by LIES Executive Committee Member Fred Gorman of Nesconset. Its members "have said we will no longer rely on our government to protect us from the evils of this company, which is taxing us to death," said Gorman, also chairman of the Nesconset-Sachem Civic Association.
LIES charges that LIPA has agreed to purchase energy in excess of what Long Islanders need and at overblown prices, and continues to raise consumers' rates without any public oversight. The group is calling for foundational reform of the public energy authority, beginning with election of the LIPA board of directors, currently appointed by the governor, state Senate majority leader and Assembly speaker.
True, by hedging its oil purchases through futures contracts, the authority has found itself out $100 million over the past year — with crude prices plummeting as the global recession began — necessitating a 3.2 percent rate increase, LIPA Vice President for Communications Ed Dumas said. And the power authority is augmenting its oil purchases with $14.4 million toward renewable energy this year.
But last year's loss in the abnormal market conditions aside, the oil-price hedging program is beneficial in the long run, Dumas said, thus far saving LIPA ratepayers about $600 million. And as for its plans to purchase solar, wind and geothermal energy, Dumas said LIPA has an obligation to invest in alternative energy. Gov. David Paterson has called for 45 percent of New York's electricity to be produced by renewable sources or efficiency upgrades by 2015.
LIES watchdogs also take issue with LIPA salaries. The authority pays its around 90 employees a combined $16.1 million in salary and benefits, an average of over $180,000 per person, according to LIES.
Dumas countered that the LIPA salaries are "in line" with salaries at other power authorities, and constitute a "miniscule" 0.4 percent of LIPA's $4 billion annual budget. "If you were to fire every LIPA employee, it would save you 25 cents a month on your bill," Dumas said.
Other members of the LIES executive committee are Gary Bessemer, Pat Byrne, Dick Graham, Roselle Hanson, Graham Kerby, Paul and Robert Kosowski, Denise and Erik Knudsen, Ray Mincone, Eleanor Morris, Laurie Pandelakis, Jacqueline Rudman and Andrea Vecchio.
Rudman, a former Three Village School Board Trustee, said her interest in LIES is mostly environmental.
"My house has been covered with acid rain for years," Rudman said. She hopes LIES can encourage cleaning up pollutants from the Port Jefferson KeySpan power plant. In addition, Rudman said, "LIPA's bills have tripled in the last five, six years." She said, "The management of LIPA deserves investigation."
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