LIPA: Lower oil prices won't bring down rates
Long Island Power Authority CEO Kevin Law says Long Islanders should not expect lower utility bills even though oil prices have decreased drastically in recent months.
Law says LIPA budgeted for oil prices to be around $88 per barrel for this year. When they skyrocketed to $147 over the summer, LIPA lost money.
?So all year long we have been trying to recover our costs that were well beyond our budget,? Law tells News 12 Long Island. ?To expect an immediate decrease is just not reasonable.?
Former LIPA CEO Matthew Cardaro agrees, saying that since LIPA has fixed overhead, lower rates can?t be expected. He also says he wouldn?t be surprised if there was a rate increase in the near future.
Law says LIPA is doing everything it can to stabilize its rates, but it?s too early to tell whether a rate hike will be necessary.