LIPA OKs reimbursements to customers for long outages

ALBANY – The Long Island Power Authority board on Wednesday approved a plan to compensate customers for extended power outages.

The plan would provide a credit of $25 per day for every day a residential customer is without power after 72 hours of outages. In addition, the plan would provide reimbursement to residential customers up to $235 for food spoiled because of disrupted refrigeration. That reimbursement could rise to as much $540 if a customer provides an itemized list and proof that it was ruined by the outage.

Residential customers also would be eligible for reimbursement for medication that was spoiled because of a lack of refrigeration. An itemized list and proof of loss would be required. The plan also provides reimbursement to small business owners for food losses up to $540, with proof of loss.

Meanwhile, LIPA trustees on Wednesday also approved a 2023 budget with operating revenues of $4.14 billion. The current budget is $3.85 billion.

LIPA said it expects residential customer bills next year to decline to around $175.42 a month, below the average $194.34 per month customers paid this year. That’s because of lower projected power supply costs and lower projected customer demand.

However, past projections have shown that such savings don't always materialize. Last year, LIPA projected monthly bills would be around $169.26 a month. But spiking costs for natural gas led bills this year to rise 15% over its projection, with customers paying an average $25 a month more than expected.

As for the outage reimbursements, they would be available for power outages that affect at least 20,000 customers at once and last for 72 hours, according to LIPA.

Customers could prove their losses with photos of replacement goods with the prices of the items, itemized lists and receipts, or other “verifiable documentation of the market value of the item.” Interviews with customers may follow to confirm the losses.

The plan also would allow LIPA to issue a waiver from paying the reimbursement if the outage is beyond the reasonable control of PSEG Long Island, which manages the electric grid.

Assemb. Fred Thiele (I-Sag Harbor) had sought to require the reimbursement package on LIPA and PSEG Long Island, which operates the power system, through legislation. A law would be stronger than the tariff amendment approved Wednesday by LIPA. But Gov. Kathy Hochul vetoed the bill by Thiele and Sen. James Gaughran (D-Northport) and instead let LIPA, a state authority, set the new policy as part of its tariff deal with PSEG Long Island.

On Wednesday at the LIPA meeting, Thiele said he was satisfied with the tariff amendment.

“I think the tariff modification in this regard is excellent and to the benefit of Long Island rate payers,” Thiele said.

By Michael Gormley

michael.gormley@newsday.com@GormleyAlbany

Michael Gormley has worked for Newsday since 2013, covering state government, politics and issues. He has covered Albany since 2001.