LIPA Will Maintain Rates Despite Higher Oil Prices
Long Island Power Authority (LIPA) Chairman Richard M. Kessel recently announced that despite skyrocketing oil prices that are forcing gasoline prices to record levels, LIPA will hold its rates, including fuel, at current levels for the rest of this year, absent a major supply crisis that impacts oil and natural gas prices.
Speaking before the Huntington Chamber of Commerce, Kessel said that some of the power authoruty's customers have expressed concern over their bills following last year's increases and recent events that have seen crude oil and gasoline prices soar to record highs with no end in sight, Kessel said he wanted to assure LIPA's customers that LIPA will maintain its rates and charges, including its fuel adjustment, absent an emergency, for 2006.
Kessel also said he expected electric rates in other parts of the region to increase significantly this summer due to rising oil prices while LIPA will maintain its rates.
Chairman Kessel said that the Long Island Power Authority would maintain its rates this year, whether or not it reaches an agreement with National Grid and KeySpan.
"It is important that our customers know now that absent a major crisis that impacts that nation's oil supplies from domestic and foreign sources, LIPA's rates, including costs associated with fuel and purchased power requirements, will not increase in 2006 despite the recent run up in energy costs," Kessel said.
"While I know our bills are too high, our customers will see no increase in rates this year."