LIPA chief's plea: No rate oversight

LIPA "is not afraid of having its rates reviewed," but the agency should not be subject to rate oversight, LIPA chief Michael Hervey said Thursday.

Hervey, who was at a State Senate Energy and Telecommunications Committee hearing on LIPA overcharges at Farmingdale State College, argued strenuously against a recently passed State Senate bill mandating LIPA rate oversight, saying it would harm LIPA's credit rating and could "cost ratepayers tens of millions of dollars."

But Republican state senators said the Long Island Power Authority has failed in its mission of lowering rates and financial accountability.

"LIPA, quite frankly, has a trust problem with its customers," said Sen. Charles Fuschillo Jr. (R-Merrick), pointing to more than $367 million in recently disclosed overcharges.

Sen. Kenneth LaValle (R-Port Jefferson) said the accounting issues at LIPA highlight the need for the bill he sponsored, which the Senate passed Monday.

There is a similar bill in the State Assembly that has not yet reached the floor for a vote.