Long Island Power Authority Chairman Kevin Law expressed a desire to lower rates at a public hearing Friday on the utility's service agreement with National Grid and KeySpan.

London-based National Grid's proposed takeover of natural gas provider KeySpan has received mixed reviews on Long Island. Despite criticism of the agreement, Law said the deal is best for Long Island residents.

"We certainly want stability in rates, but got to do whatever we can to lower them," Law said. He said the potential cuts could come from the savings resulting from the merger.

With the memories of this week's nor'easter still fresh, state Assemblyman Marc Alessi (D-1st District) spokesperson Kaitlin Boyd said she worries about National Grid's service record. National Grid faces $6 million in fines for service and performance problems in upstate New York last year.

"I'm fearful the threat of fines might not be enough incentive to make National Grid improve its service," Boyd said.

LIPA's deal with National Grid and KeySpan stipulates that there would be no layoffs if it's approved, keeping unions happy. Environmentalists expressed concerns, though, about power plant emissions and some of KeySpan's heavily polluted former natural gas production plants.

For the extended interview with LIPA Chairman Kevin Law, go to channel 612 on your iO digital cable box and select iO Extra.