LIPA 'security' bill throws firm a curve

Power Resources International, a designer of hardware and software that monitors equipment at railroad substations, has been in business about 15 years and, according to its president, has not been late on its LIPA payments.

But the West Babylon-based company is yet another Long Island business that has received a letter from the utility saying that Dun & Bradstreet shows "your current security deposit is less than allowed by our tariff and state regulations." LIPA said the company must pay $2,955 or face "a disconnect notice."

Newsday reported earlier this month that about 35 such letters were issued in what a LIPA spokeswoman called the latest "cycle" of such communications to Long Island businesses, after a credit check by D&B and Experian. LIPA says it is acting "in an effort to protect all ratepayers." But some Suffolk legislators and business leaders were outraged, and the legislature formed a LIPA oversight committee to investigate the matter.

Committee co-chairman Sheldon Sackstein, and Suffolk Legis. Wayne Horsley (D-Babylon), chairman of the legislature's energy committee, said that, preliminarily, they have concluded that LIPA may be within its rights to ask for such deposits. Nonetheless, they said, they question the fairness of doing so in the current economic environment.

And, they said, they plan to press for LIPA oversight.

"LIPA may be within their rights to do what they're doing," Sackstein said. "But it does not mean they're not being heavy-handed." Horsley said LIPA's practice "shocked" him.

Power Resources president Joseph Diurno said he has a good LIPA payment record and "a long-standing relationship" with the utility. He sent LIPA a letter Dec. 20 asking for clarification. "I placed calls," he said. "I left messages. Not a word" back.

After a Newsday call, a LIPA spokeswoman said the utility has reached out to Diurno.