LIPA rate cut proposal would lower customers' bills

The Long Island Power Authority Wednesday begins the first of four public hearings on a 2011 budget that proposes a 2.2 percent drop in bills but for the first time levies a charge for late payments.

Under the $3.66-billion budget, LIPA bills for the average customers would drop about $3.30 a month, the authority said earlier this month.

But the new budget for the first time includes a proposal to charge ratepayers 1.5 percent when ratepayers fall behind 23 days or more. LIPA has said the charge, which would generate a "few million" dollars for LIPA's coffers, is aimed at discouraging customers from letting bills lag. About a fifth of LIPA ratepayers don't pay their bills on time. Commercial customers already pay a late fee.

The new budget increases the amounts LIPA spends on green-energy programs. For renewables, like solar and wind, spending would rise by $7.1 million to $25.7 million.

And while 2011 rates overall are scheduled to decline, one element portion of bills would increase. The delivery charge, which represents the fixed cost that LIPA pays to bring electricity to homes and businesses, will jump 1.9 percent starting in March, the first time LIPA has ever increased it.