LIPA refund right thing to do
Robert and Elizabeth Rizzo of East Patchogue Credit: Chris Ware
The Long Island Power Authority faces many complex decisions involving its future and new sources of electric power for Long Islanders.
But when it had a simple problem to solve, the agency's executives blew it. Instead of just making a full refund to Elizabeth and Robert Rizzo, who were overcharged for 11 years because their East Patchogue home was classified as a business, LIPA at first insisted that the customer was at fault.
The couple's house, originally a developer's model home, was never switched to the residential category after it was sold in 2000.
After the mistake was discovered last summer, LIPA refunded approximately $1,000 for only two years of overbilling. It said that was the time limit under the state Public Service Law. LIPA tried to hide behind the Public Service Law, even though LIPA's own bylaws say it's obligated to make refunds for erroneous billing for up to six years.
After the Rizzos' story was told in yesterday's Newsday, LIPA still insisted the two-year cap on refunds was proper and that it was the Rizzos' responsibility to check page 2 of their monthly bill to make sure the rate was correct.
Very late in the day, however, after a torrent of publicity, the utility made the startling discovery that the Rizzos would have had to file an application for the commercial rate. So it wasn't their fault after all.
LIPA found a way to admit it was wrong. It should also be embarrassed.
