Nov 26, 2008 8:01 pm US/Eastern
Long Island Homeowners Face Utility Bill Rate Hike
NEW YORK (CBS) ―
Long Island utility customers could soon see a nearly five percent rate hike on their bill.
With their LIPA bill in mind, the Ducharm family of Salisbury is paying to re-insulate their home this Thanksgiving: making walls thicker and installing a propane fireplace, all efforts to cut energy consumption.
"[It's] kind of ridiculous. We do our best to save energy, make the kids turn off the lights when they leave the room," Christa Ducharm said. "And now we will be charged a little extra? Kind of crazy."
As crazy and unfair as they think of the prospect, the Long Island Power Authority says that lower customer usage has cut revenue for the utility, and that is one of the factors behind a proposed 4.8 percent bill hike next year – translating into an average $7.50 increase.
"We're not too happy," Dean Ducharm said. "We have to keep our fingers crossed we can afford all these improvements and pay for LIPA."
Ratepayers are left wondering why, despite a record drop in fuel costs, their LIPA bills are going up.
"We can't really lower what we never raised," LIPA CFO Elizabeth McCarthy said. "And when we look forward to 2009, we see that our costs are going to be higher in fuel and purchased power by about $200 million."
McCarthy describes a perfect storm that includes lower usage, resulting in lower revenue. Increasing contract costs have hit the utility company, as have fees for renewable energy and clean air. New plants, taxes, and nuclear fuel costs have also hit LIPA hard.
But try explaining that to Temple Shalom's bookkeeper in Westbury. Everyone there's conserving energy to lower bills and save money--to no avail.
"I'm not happy about it," Susan Manor said. "The synagogue has had to eliminate their Hanukkah party for children, which they've had every year for 54 years."
LIPA is encouraging families to cutback. Plasma TVs are huge drains, and LIPA suggests that homeowners unplug power strips and chargers when they're not being used. Another tip is to invest in solar and wind energy, which,in the long run, will lower bills.
(© MMX, CBS Broadcasting Inc. All Rights Reserved.)
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