LIPA settlement to offer ratepayers up to $3 credit

LIPA ratepayers can expect a one-time credit of LIPA ratepayers can expect a one-time credit of up to $3 on a future bill as part of a federal settlement with an energy provider accused of manipulating wholesale energy markets. (Nov. 12, 2012) Photo Credit: AP

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LIPA ratepayers can expect a one-time credit of up to $3 on a future bill as part of a federal settlement with an energy provider accused of manipulating wholesale energy markets.

The Federal Energy Regulatory Commission in March approved a $110 million civil penalty against Constellation Energy Commodities Group after it found the company manipulated three regional energy markets, including New York's.

Public Service Commission chairwoman Audrey Zibelman said the settlement "directly benefits consumers harmed by Constellation's actions by providing a one-time residential customer credit" and economic benefits that "protect consumers' interests and help further strengthen our energy infrastructure."

LIPA expects to receive $6.4 million from a total $48 million divided among the state's seven public and privately owned utilities. In addition to credits going to customers, $10 million in settlement funds will go to support "consumer advocacy" in New York's energy market, and $20 million will be used "to promote advanced technologies to optimize transmission system performance," the PSC said.

Other state utilities receiving refunds include $15.1 million for Con Ed customers, $10.4 million for National Grid upstate customers and $5.9 million for New York Power Authority customers.

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