LIPA to reduce electricity bills, at least this month, on Long Island

April 4, 2013 3:22:18 PM PDT
Paul Doyle owns Roast Sandwich House in Melville. He says opening up his LIPA bill at the end of the month always racks his nerves.

"When you have a bill that comes in one month for x amount of dollars and the next month for 20 percent more or 20 percent less it really throws off the books," Doyle said.

Businesses and homeowners may have noticed last month that their bill was particularly high. Well this month it's supposed to go down, leaving people very confused.

"I have not been a fan of LIPA for a long time so its ok that's what they do," Molly Brod of Woodbury said.

"The way the economy is right now I don't see things as being stable so I kind of accept it of course," Dave Morsch of Huntington said.

LIPA sets its rates based upon the projected cost of fuel each month.

A spokesman says rates were higher last month because the cost of fuel in January was so much higher than projected they had to make up for it in March by raising rates.

They say because the price of fuel has now gone down so will the rates this month.

"Utilities are notoriously very poor at making fuel projections," Matthew Cordaro, a new trustee on the LIPA board, said.

He says there must be a better way.

"I think a better system would be what ConEd does now is charge for what they paid for fuel at the end of each month and bypass the need to make projections," he said.

So what does this mean for you. Homeowners you may see that your bill is about $13 less this month. Businesses about $220 less.