Huntington Town suing LIPA, National Grid

Officials from the Town of Huntington announced yesterday that they have filed a lawsuit against the Long Island Power Authority and National Grid, alleging the companies have violated a 1997 agreement not to challenge the assessment of the Northport power plant.

Town officials said a suit filed in October by LIPA, which seeks to reduce the plant's assessment by 90 percent, is "illegal, wrong and must be stopped."

"Pursuant to the March of 1997 agreement between LIPA and LILCO [Long Island Lighting Company] we contend that the town of Huntington was a third party beneficiary," said former town board member Stuart Besen, an attorney representing the town in the matter. "That agreement was made for the benefit of the town of Huntington."

Town officials said LIPA agreed in 1997 not to challenge the assessment on the plant unless the assessment was increased out of proportion to capital improvements. Town officials said the assessment has not been increased.

Northport-East Northport school board officials, who were also at Huntington Town Hall for the announcement, said district officials had filed their own lawsuit against the two utilities for the same reasons.

LIPA officials said they had no comment on the lawsuits.

Huntington Town Supervisor Frank Petrone said the town was compelled to file the lawsuit because the LIPA lawsuit is "unjust" and the town must protect the interests of taxpayers.

"They have broken an agreement," Petrone said. "They did not see fit to sit and even discuss the fact that there is an agreement."

Town board members, elected officials from Asharoken and Northport villages, and library board members were at the announcement to show support for the lawsuits. Petrone also read a letter of support from members of the local state legislative delegation.

Town officials said LIPA agreed not to challenge the assessment after LIPA took over from LILCO in 1997 the sale and delivery of electricity from the Northport plant.

The town and school district lawsuits are asking the court to find the utility firms in violation of that pact and prohibit further action on the October suit.

Stephen Waldenburg, president of the Northport-East Northport school board, said LIPA was violating its own contract. "You don't turn around and threaten the community and every resident of our district with a 50 percent tax hike."