Kessel: LIPA Will Maintain Rates & Charges in '06, Despite Run Up in Oil Prices Expects to Hold Line Unless Supply Crisis Impacts Prices of Oil and Natural Gas Huntington, NY - April 27, 2006 - Long Island Power Authority (LIPA) Chairman Richard M. Kessel today announced that despite skyrocketing oil prices that are forcing gasoline prices to record levels, LIPA will hold its rates (including fuel) at current levels for the rest of this year, absent a major supply crisis that impacts oil and natural gas prices. Speaking before the Huntington Chamber of Commerce, Mr. Kessel said that some LIPA customers have expressed concern over their bills following last year's increases and recent events that have seen crude oil and gasoline prices soar to record highs with no end in sight. Mr. Kessel said he wanted to assure LIPA's customers that LIPA will maintain its rates and charges, including its fuel adjustment, absent an emergency, for 2006. Mr. Kessel also said he expected electric rates in other parts of the region to increase significantly this summer due to rising oil prices while LIPA will maintain its rates. Mr. Kessel said LIPA would maintain "It is important that our customers know now that absent a major crisis that impacts the nation's oil supplies from domestic and foreign sources, LIPA's rates, including costs associated with fuel and purchased power requirements, will not increase in 2006 despite the ecent run up in energy costs," Mr. Kessel said. "While I know our bills are too high, our customers will see no increase in rates this year while energy costs like gasoline and other energy products throughout the state and region are expected to increase significantly in the months ahead." Mr. Kessel said that LIPA's rates will remain the same this year due to prudent fiscal practices including conservative budgeting and an aggressive hedging strategy designed to limit LIPA's exposure to market "ExxonMobil's $37 billion profit last year and outrageous executive compensation packages are an embarrassment to the nation," Mr. Kessel said. "The Bush Administration and Congress must demand that ExxonMobil and other major oil companies use some of their outrageous profits to moderate retail gasoline costs this summer, as well as the oil products used to generate electricity." "While I understand that market speculation driven by fear and international problems do impact crude oil prices, there is absolutely no justification for the kind of run-up in oil and gasoline prices that we are seeing here on Long Island and throughout the nation," Mr. Kessel. "The profits being earned by ExxonMobil and the other major oil companies are obscene, and the compensation and retirement packages of top executives are nothing short of disgraceful. The federal government must demand that the oil companies and their executives give back some of this money to help moderate retail prices at the pumps and in our homes this summer." Mr. Kessel urged LIPA customers to utilize energy efficiency to the greatest extent possible this summer to help control their bills. He said that while LIPA's rates would not go up this year, last year's increase would mean higher bills this summer than last summer. As a result, customers need to take aggressive actions to reduce consumption including installing Energy Star-rated air conditioners, appliances, lights and lighting fixtures, and other energy efficient products that will help cut electric use and reduce electric bills significantly. Mr. Kessel noted that LIPA offers a wide variety of programs to both commercial and residential customers, under the banner of its Clean Energy Initiative (CEI), to help consumers manage down their electric use. LIPA's Web site, www.lipower.org, contains details on these energy saving programs, including its "53 Ways to Save" consumer information effort. "To a large extent, we're being victimized across the economic spectrum by the out-of-control, record-breaking price increases for crude oil, because so many of the products and service we all use are tied to the cost of energy," said Mr. Kessel. "As consumers, both as individuals and as business people, we have the power to fight back by being more energy efficient in our daily lives. The more we conserve, the more we use energy efficiently, the more we take back control. Our mantra should be: Fight back. Use less.'' LIPA, a non-profit municipal electric utility, owns the retail electric system on Long Island and provides electric service to nearly 1.1 million customers in Nassau and Suffolk counties, and the Rockaway Peninsula in Queens. In terms of customers served, LIPA is the third largest municipal electric utility in the nation; sixth largest in terms of electricity delivered. LIPA does not own any electric generation assets on Long Island, and does not provide natural gas service. ### LIPA Contact Information: News Center Press Release 4/30/06 8:55 PM Eastern |
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