By Dave Vieser
Lynbrook electric discounts begin November 1
Residents and businesses in Lynbrook will be eligible to receive discounted rates on their electricity beginning November 1, as the Village expands it's municipal utility program. According to Mayor Eugene Scarpato, the lower-priced electricity will save the average homeowner about $75 annually, with potentially greater savings for businesses.
"It's not as much savings as I wanted, but it's a start", said Mayor Scarpato during a recent interview in his Lynbrook office. "I had said all along that, if there was any way we could begin this program and offer savings to our citizens and businesses, whatever the amount, that I wanted to do it right away so they could benefit."
To obtain the discounted electricity, which amounts to about a 3.5% decrease in the purchase price of electricity, Lynbrook residents and businesses must submit an application to Village Hall. A mailing containing the application will be sent out within the next two weeks.
The savings, the first of its kind to be instituted on Long Island, is achieved by the village through the purchase of the electricity in bulk, and as a result of less taxes which Lynbrook is required to pay to purchase the commodity in the deregulated utility market.
"This is a win/win program for all Lynbrook homeowners and businesses," said Dave Smollett, Administrator for Lynbrook's Municipal Utility Program. "There is no fee to switch over from LIPA, and all they have to do is file the application with us to receive the cut rate electricity."
There are about 7,000 residential customers in Lynbrook who will be eligible to receive the discounted electricity, as well as about 300 business customers, who could save significantly due to their heavier volume use.
The discounts for electricity expand upon the village's initial efforts in supplying lower priced utilities, which have resulted in the provision of lower priced natural gas for about 1200 homeowners, as well as a few major commercial users, including the Lynbrook Public Schools.
Reaction from local residents and businesses was positive. "I think that's a wonderful thing which the administration is doing for our homeowners and businesses," said Bill Gaylor, owner of the Lynn Gift Shop on Atlantic Ave and President of the Lynbrook Chamber of Commerce. "Anything that we can do to cut down on the cost of electricity is helpful to the community. I certainly intend to encourage participation by all of our chamber members." Mr. Gaylor also feels that, with the likelihood of higher prices for oil in the near future, the timing of the Lynbrook program is "right on target."
The municipalization process for Lynbrook actually began five years ago with feasibility studies and public hearings. "We wanted to make sure that our process was well underway before LILCO changed to LIPA," said Mayor Scarpato.
Following several public hearings, voters narrowly approved the municipalization in November of 1997. Then, just as the village was about to acquire the existing power lines, poles and power stations by eminent domain, LIPA took over LILCO, pre-empting the village from acquiring the distribution system. As a result, the Village turned its emphasis towards natural gas, becoming a marketer for gas at a lower price than that offered by KeySpan/Brooklyn Union. Beginning in November, the village will be offering both cut-rate natural gas and electricity.
Most electricity on Long Island is provided by LIPA. Only three villages-Freeport, Rockville Centre and Greenport-have their own municipal electric generating systems. Lynbrook will be the first community on Long Island to actually implement a program to purchase cut-rate electricity, while still using LIPA's transmission facilities. The program has created considerable interest among other villages which belong to the Nassau County Villages Officials Association and they have indicated that they will be monitoring the progress of Lynbrook's program carefully.
One of the obstacles which Village officials have faced is the method of billing customers. Due to state regulations, participants in the Village program have received two separate bills, one from the Village for the acquisition of the commodity (either gas or, beginning in November, electricity) and the other from Keyspan/LIPA for the transmission system which supplies the commodity. Although the sum of the two bills totaled less than the customer previously paid, the addition of a second bill created confusion among some customers.
Due to the efforts of village officials, the "twin billing" will soon be eliminated. "When we were up in Albany speaking with the state Public Service Commission, we emphasized how important it would be to consolidate this into one bill," said Mayor Scarpato. "I am pleased to note that an agreement has been worked out with LIPA, and all of those participating in the program will eventually receive just one bill with all costs itemized."
However, the changeover will not occur until early next year, necessitating the sending of two bills for all participants until that time.
Complete information on the new program, and copies of the application forms, may also be obtained on the village's web site:
.
