LIPA Seeks Property Tax Reductions, But Customers Unlikely To See Savings

Apr 24, 2018

The Long Island Power Authority wants to reduce the property taxes it pays on four Long Island power plants. However, that doesn’t mean customers would see immediate savings on their energy bills.

LIPA has challenged almost $180 million that it pays in property taxes for the Northport, Island Park, Port Jefferson and Glenwood Landing plants that are owned by National Grid.

These plants account for about half of LIPA’s total tax bill, and the Authority anticipates it will use those plants less and less.

Brookhaven Town Supervisor Edward Romaine tells Newsday that any tax savings should be passed on to LIPA ratepayers.

But those savings will likely be negligible. LIPA has a budget of $3.5 billion, which means $35 million represents 1 percent of what customers pay.

The $180 million in savings LIPA seeks would only translate to a 5 percent bill reduction for ratepayers.

But those savings might not last because of potential LIPA rate increases in 2020.