Residents rallied in Northport Sunday to protest the possibility of a tax break for LIPA.

LIPA is in the process of suing the Town of Huntington, saying it is paying too much in property taxes for its Northport power plant. It says it should have paid a fraction of the $82 million it paid last year.

Rally organizer Paul Darrigo, of Concerned Taxpayers Against LIPA, says lowering LIPA's tax bill does not benefit Long Islanders.

"If LIPA could wave its magic wand and pay no taxes anymore... they would give about $37 a month back to the ratepayer on Long Island,” says Darrigo.

Darrigo says he's not concerned about his electric bills. “Energy poverty is not the issue on Long Island. Taxes are the issue on Long Island,” he says.

Some residents at the rally said they are worried that if LIPA gets a tax break, people will pay a price. They say they fear their taxes will go up and drive out residents and some small businesses.

Frank Pipolo, of Northport, says children will also suffer.

"If they get their way... we'll lose anywhere between $30 to 50 million to the school district,” says Pipolo.

Darrigo says the suit should concern all Long Islanders.

"Once LIPA is finished with its lawsuit here in this region, it is going to go after every community on Long Island,” he says.

LIPA did not respond to Sunday's rally, but it said earlier this month that the property tax for the Northport power plant is the highest in the country, which is not sustainable.

MORE: Sen. Gaughran on LIPA tax battle: 'It’s going to impact school districts, property taxes' , LIPA seeks tax relief from the Town of Huntington , LIPA seeks lower taxes on Northport plant