Power Bill Hike Eyed by LIPA

igher oil costs could lead to higher electric bills on Long Island, the chairman of the Long Island Power Authority warned yesterday.

"It's no secret that energy costs have been increasing for everyone," LIPA Chairman Richard Kessel told the Huntington Chamber of Commerce.

"Our goal is to try to absorb as much of our increased fuel costs as possible. But with the per-barrel price of oil constantly increasing and with the cost of natural gas expected to increase significantly in the months ahead, it will strain LIPA's finances to the limit."

The authority could go $200 million over budget for fuel as a result of the higher oil prices, he said.

He indicated that any increase would undermine the benefit of a 20% electric rate cut that was given to ratepayers as part of the blockbuster 1998 state takeover of the Long Island Lighting Co.

Kessel said he had sent a letter to President Clinton urging him to release oil from the Strategic Petroleum Reserve to ease supply and reduce prices for gasoline and home heating fuels.

http://www.nydailynews.com/2000-09-22/News_and_Views/City_Beat/a-81051.asp

-- Martin Thompson (mthom1927@aol.com), September 23, 2000