Lawmaker wants Cuomo to OK LIPA audit

A state assemblyman wants Gov. Andrew M. Cuomo to approve an audit of LIPA.

In a letter to Cuomo and two state regulators Tuesday, Assemb. Robert Sweeney (D-Lindenhurst) asked for a Public Service Commission review of the Long Island Power Authority's finances. His letter came a day before Wednesday's first meeting of a LIPA oversight committee convened by the Suffolk legislature.

Sweeney cited questions raised about a 1.9-percent rate hike that takes effect this month. LIPA's trustees approved the increase last week. In the meeting, trustee Neal Lewis questioned whether LIPA kept the rate below 2.5 percent to avoid a mandatory PSC review.

One official said the 2.5 percent trigger did not play a role, but chief operating officer Michael Hervey clarified that LIPA had "an eye" on the trigger.

In a subsequent e-mail in response to Newsday questions, LIPA acknowledged that it had even been in contact with the PSC as part of the rate process. "Over time LIPA has had conversations with the PSC to understand their interpretation and LIPA is fully aware of what the PSC rate trigger would be," spokeswoman Vanessa Baird-Streeter said.

Sweeney's letter to Cuomo, as well as the heads of the PSC and state Comptroller Thomas DiNapoli, said concerns surrounding LIPA's finances raise too many questions. "LIPA's actions have placed a cloud over the agency with public suspicion climbing and confidence plummeting," he wrote.

Sen. Charles Fuschillo (R-Merrick), who Tuesday scheduled an April 7 Senate hearing at Farmingdale State College on a separate $231 million LIPA overcharge recently discovered, said, "Assemblyman Sweeney has my full support," in his call for an audit.

DiNapoli spokeswoman Emily DeSantis said the comptroller "welcomes the opportunity to work with the PSC on an audit of LIPA's rate-setting practices to protect LIPA families."

Cuomo's office didn't respond to a request for comment.

Meanwhile, the LIPA oversight committee of the Suffolk Legislature debuts Wednesday with a mandate of investigating the overcharges LIPA acknowledged last month, citing a faulty formula for calculating lost energy. Legis. Edward Romaine (R-Center Moriches), who co-sponsored the committee's creation, said it will call for a full management audit of LIPA.

Responding to Sweeney's concerns, Hervey pointed to rising costs as justification for the 1.9 percent increase, among them $33 million more in state and local taxes and a $5 million jump in administrative costs. "It is only due to the escalating costs highlighted that LIPA had to propose a modest increase," he said. Monthly increase ranges from $2.88 for homeowners to $271 for large "general metered rate" period customers.

Hervey said LIPA's books are open and have been reviewed by the utility's board, auditors and the state comptroller.