Barrett decision troubles I.P.

Island Park Mayor Jim Ruzicka was told two weeks ago by the Long Island Power Authority that the utility had decided not to purchase the Barrett Power Plant in Island Park. School Superintendent Dr. Rosemarie Bovino was also told of LIPA’s decision.

Neither, however, was thrilled to hear that LIPA had decided not to buy the plant for economic reasons. “I would say the district is very disappointed,” Bovino said. “We were hoping that the plant would be bought by LIPA, retooled and repowered to ensure the longevity of the plant” — and the continuation of its Payments in Lieu of Taxes, which account for about 40 percent of the school district’s property-tax funding.

LIPA made the announcement on Sept. 25, deciding that it simply could not afford to buy the facility, one of the largest power plants on Long Island, given the nearly $7 billion in debt the company already carries.

The potential purchase was first discussed at a public meeting of LIPA officials and the Island Park community in March. The plan called for LIPA to buy the plant, which is currently owned by National Grid, and then repower it. Repowering would entail building a new, more environmentally friendly and energy-efficient plant on the site.

Under a contract between LIPA, which owns Long Island’s power distribution systems, and National Grid, LIPA had the option to purchase the plant. According to Kevin Law, president and CEO of LIPA, the book price of the plant was about $90 million. On top of that, it would cost almost $1 billion to repower the facility — a total of almost $1.1 billion.

“LIPA is choosing not to buy it based on financial reasons,” Law said. “We have $7 billion in debt, and it’s tough for us to take on more. I support repowering and I’d like to see a repowering project done on Long Island.”

But the decision disappointed many Island Park residents. “The downside is that if LIPA’s not buying it, it means they’re not going to repower,” said Ruzicka. “No new station there.”

The mayor added, “The station that’s there right now is in great shape even though it’s an old station. National Grid maintains its equipment very well. I know — I worked there for many years. And I know that they put a lot of care into it.”