FAQ - LIPA Bill Adjustment

If after browsing our frequently asked questions, you still have a question, feel free to contact us. Call 1-800-490-0025 or 631-755-6000- Monday - Friday: 8:00am to 8:00pm, except holidays.

I am interested in: My Account | Bill Adjustment  | Understanding Your Bill | Electric Service

As a municipal electric utility LIPA does not make a profit and seeks only to recover monies from its customers to cover its costs. Below are frequently asked questions relating to LIPA’s recent bill adjustment.

Why is LIPA increasing the Power Supply Charge?
LIPA’s Power Supply Charge was increased due to recent increased costs for fuel and purchased power. Fuel and purchased power costs represent 55% of LIPA’s 2008 Operating budget. These are costs which LIPA cannot control. For further information regarding projected fuel costs for 2008, you can view LIPA’s 2008 Operating budget.

What is the Power Supply Charge?
The Power Supply Charge is the charge for fuel (e.g. oil and gas) used to produce electricity and the purchase of power.

When is the increase effective?
The Power Supply Charge increase is effective July 1, 2008.

How long will this Power Supply Charge factor be in effect?
Unfortunately, the Power Supply Charge is a permanent part of the LIPA bill. LIPA’s goal is to protect its customers from wild price swings and mitigate as best as possible any fuel and purchased power increases. If oil and gas prices change significantly (decrease or increase) in 2008, LIPA will reassess the level of the factor to determine the need for an adjustment to the factor.

How much of an increase will I see?
The Power Supply Charge on your bill has been increased from $0.097689 to $0.103420 per kWh. This represents a 3% increase on the total bill for a typical residential customer. Delivery & System Charges remain unchanged.

How can I reduce my electric costs?
LIPA customers can help lower their bills by using electricity as efficiently as possible. We have plenty of useful information on our Web site including a Home Energy Audit feature that can help identify ways to be more energy efficient. Look for our “53 Ways to Save Energy and Lower Your Electric Bill” brochure, which has some great no cost and/or low cost suggestions to help lower electric bills without sacrificing one’s quality of life. Also, the “Electric Appliance Energy Guide” provides information on how much electricity different household appliances use. Under our Clean Energy Initiative, we have two programs- REAP and Home Performance - both that can help reduce electric costs.

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Last Updated: 08/20/2008