LIPA, state work to resolve flag fee issue

Pushed by two legislators and its trustees, the Long Island Power Authority may have found a way to sidestep a state law that it says forces LIPA to charge a fee for putting American flags on utility poles.

But it's not clear the fix, which will require approval by trustees and a change in its rule book, is a guaranteed one.

The activity comes amid a firestorm of criticism for LIPA after it said it would charge Shelter Island Town a $5 annual fee per pole, later prorated to $1.25 per pole, to hang flags in honor of fallen Army 1st Lt. Joseph Theinert. Theinert was killed in action in Afghanistan last June.

In a statement to Newsday on Friday, LIPA said it was reviewing its "property disposition guidelines and is prepared to make any necessary changes that would avoid the unintended consequence raised by the Town of Shelter Island situation."

The move comes at the urging of state Sen. Kenneth LaValle (R-Port Jefferson) and Suffolk Leg. Ed Romaine (R-Center Moriches), who have pushed LIPA to rescind the fee, arguing that LIPA was misinterpreting the Public Authorities Reform Act.

"They clutched to their bosom a legal opinion that was very silly," LaValle said. "They made a problem where they didn't need to make a problem for themselves."

LIPA said it has consulted a state agency known as the Authority Budget Office, which it said "indicated that it will likely provide guidance on this issue, to ensure that LIPA is in full compliance with the relevant provisions of the Public Authorities Reform Act related to its pole attachment agreements."

Expected changes to LIPA's bylaws allowing waiver of commemorative flag displays will be brought before the full board of trustees, LIPA said.

On Thursday, LIPA chairman Howard Steinberg publicly apologized to Theinert's family for the flag snag, and vowed trustees would establish a fund to cover the costs of such displays until the issue was fixed.

LIPA chief operating officer Michael Hervey offered to pay the fee for the 19 poles in Shelter Island. LIPA has yet to issue a bill.