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Governor George Pataki visited Angelo and JoAnn Pioli of Levittown last week to deliver the first Long Island Power Authority refund check.
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Richard Kessel and local politicians look on as Governor George Pataki speaks in Levittown last week about the LIPA rebates.
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Pioli, a retired ironworker, received a check for $232 and can expect to save another $252 annually in reduced electric rates. According to a representative from the governor's office Pioli was chosen to receive the first check because he was gracious enough to host Pataki.
The refund is part of a plan by the governor which, besides giving a one-time refund to customers, will reduce the electric rates by approximately 20 percent. In Levittown the exact rate decrease will be 20.9 percent for at least the next five years. This is the largest electric rate cut in the country. Residents are expected to receive their rebate checks this Friday although some people may receive them a few days later. According to LIPA Chairman Richard Kessel the purpose of the refund is to compensate ratepayers for the overtaxation of the Shoreham Nuclear Power Plant. He said, "The refund is a one-time thing but I think that it is one form of compensation for the suffering that people underwent because of LILCO and Shoreham and all those other things."
The LIPA rebate and rate cut comes on the heels of the STAR tax cut, also a plan of Pataki's, which currently cuts school property taxes for senior citizens and next year will cut school property taxes for all homeowners. In Nassau County, Pataki's School Tax Relief plan is delivering an average tax savings of $1,342, or 45 percent, for income-eligible senior citizen homeowners. This year 43,123 Nassau seniors are receiving the STAR cut and 5,643 of those seniors will not have to pay any school property taxes this year.
All Nassau County ratepayers, who are LIPA customers of record on September 10 will automatically receive a $232 check from LIPA as their rebate. Ratepayers who are in arrears on their bills for 90 days or more will receive a credit on their bill for the amount they would have received in a check. Former LIPA customers of record between May 29 and September 9 may qualify for a rebate if they no longer live in the service territory or if they live in the area but are no longer LIPA customers. These people must apply to LIPA for their rebate.
"This money will allow working families to upgrade their computers, purchase new winter clothes for their children, have fun with their grandchildren, or take advantage of some of the magnificent attractions Long Island offers," said the governor. "It is your money to save or spend as you see fit." In addition to the 20 percent rate cut and rebates, the governor's plan maintains reliable electric service on Long Island, promotes energy efficiency and conservation, and soon will begin competition in the wholesale and retail electric market on Long Island.
According to Kessel, "This is another tremendous shot in the arm for the economy of Long Island. Approximately $171 million will be going back into the economy as a result of these rebates. Add that amount to the $490 million in electric rate savings that LIPA customers will enjoy annually from the 20 percent rate savings and you have great news that everyone on Long Island should be very pleased to hear."
Many local officials voiced their support of the governor's LIPA plan, including Nassau County Executive Thomas Gulotta. According to Gulotta, "Governor Pataki's LIPA plan breaks the yoke of electric rates that have been stifling our survival and economic growth. The electric rate cuts and rebates which our residents and businesses are now receiving will stimulate our local economy, increase the values of our homes, and permit homeowners to remain in Nassau County near their friends and family. I applaud the governor who, once again, is demonstrating that he truly cares about Long Island and its residents."
Bruce Blakeman, presiding officer of the Nassau County Legislature expressed his pleasure in the plan, despite the fact that many people believed that it would never work. Blakeman was one of the first elected officials in Nassau County to support the governor on this plan and he said that he is very pleased to see it continuing to move forward.
Town of Hempstead Supervisor Richard Guardino also had kind words about the governor and the LIPA plan as well as for the STAR plan and the all other ways that Pataki has supported Long Island residents and businesses. He said, "Once again, Governor Pataki has demonstrated his commitment to Long Island."
The rebate checks are only a portion of the settlement for the Shoreham judgment that LIPA customers will receive. Over the next five years LIPA customers will receive credits on their billing statements for the balance of the settlement. LIPA customers will also receive credits for the remainder of the RICO judgement against LILCO. In both cases the amount of credit will depend on use.
Kessel concluded, "How often do you get something back from a utility? I think it's a great thing."
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