0523 CEO Report - lipower.org7 northport usage 13% 18% 53% 1999 2016 2030 northport taxes $3,770,000...
Transcript of 0523 CEO Report - lipower.org7 northport usage 13% 18% 53% 1999 2016 2030 northport taxes $3,770,000...
MEETING EXPECTATIONS
LIPA and PSEG Long Island have been designated as a diamond-level Reliable Public Power Provider for our commitment to reliable and safe electric service.
INDUSTRY-RECOGNIZED RELIABILITY
Port JeffersonProperty Taxes: $32,661,0001958 - 393 MW Max Output
GlenwoodProperty Taxes: $23,495,0001967 - 114 MW Max Output
NorthportProperty Taxes: $80,770,0001967 - 1,589 MW Max Output
CaithnessProperty Taxes: $9,670,0002009 - 350 MW Max Output
BarrettProperty Taxes: $42,617,0001956 - 663 MW Max Output
LIPALong Island Power Authority
BowlineRockland County NY
Property Taxes: $2,700,0001967 - 1,135 MW Max Output
Energy Produced: 2,500,000 MWh
Energy Produced: 3,000 MWh
Energy Produced: 356,000 MWh
Energy Produced: 1,600,000 MWh
Energy Produced: 1,400,000 MWh
Energy Produced: 2,500,000 MWh
* Caithness and Bowline are not legacy National Grid plants. Figures shown for comparison purposes.
�4CUSTOMERS TO PAY $2 BILLION IN OVER-TAXATION FOR FOUR POWER PLANTS OVER NEXT DECADE
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NORTHPORT POWER PLANT
PORT JEFFERSON POWER PLANT
GLENWOOD POWER PLANT
E.F. BARRETT POWER PLANT
HUNTINGTON
OYSTERBAY
GLEN COVE
BABYLON
HEMPSTEAD
LONG BEACH
NORTHHEMPSTEAD
SMITHTOWN BROOKHAVEN
RIVERHEAD
SOUTHOLD
SHELTERISLAND
SOUTHAMPTON
EAST HAMPTON
ISLIP
ROCKAWAY
2015 data compiled through SeeThroughNY.net with sourced material from the Office of the State Comptroller, with further
calculations by the Empire Center for Public Policy. Median home prices sourced from Multiple Listing Service.
78%
22%
8%
92%Four Legacy Power Plants
POWER PLANT TAXES POWER PLANT OUTPUT % TAXES TO FOUR SCHOOL DISTRICTS
63%
~20,000 Customers
28 Power Plants
37%~1,100,000 Customers
E.F. Barrett; Northport; Glenwood; Port Jefferson
63% OF $2 BILLION WILL GO TO < 2% OF LONG ISLAND RESIDENTS IN FOUR SCHOOL DISTRICTS
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5,832 Customers 12,995 Customers
2,904 Customers
2,916 Customers
1.1 Million Customers
NORTHPORT POWER PLANT AVERAGE YEARLY SCHOOL TAXES
HuntingtonSchool Districts
Elwood $11,965
$11,582
$11,036
$11,801
Harborfields
Huntington
South Huntington
2015 CalculatedTax
$8,333Northport-East Northport
HUNTINGTON
OYSTERBAY
GLEN COVE
BABYLON
HEMPSTEAD
LONG BEACH
NORTHHEMPSTEAD
SMITHTOWN BROOKHAVEN
RIVERHEAD
SOUTHOLD
SHELTERISLAND
SOUTHAMPTON
EAST HAMPTON
ISLIP
ROCKAWAY
2015 data compiled through SeeThroughNY.net with sourced material from the Office of the State Comptroller, with further
calculations by the Empire Center for Public Policy. Median home prices sourced from Multiple Listing Service. Estimated taxes
based on Northport's average home value of $510,000.
NORTHPORT - EAST NORTHPORT SCHOOL TAXES ARE 24% BELOW TOWN OF HUNTINGTON AVERAGE
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* Northport - East Northport school taxes are $3 - 4,000 per year below neighboring districts in the Town of Huntington due to the over assessment of the Northport Power Plant
* Spending Per Pupil - $29,847
13%33% 54%
Tax Levy LIPA CustomersState Aid
* LIPA customers pay 33% of the Northport - East Northport school district budget
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NORTHPORT USAGE
13%18%
53%1999
20162030
NORTHPORT TAXES
$3,770,000
$100,559,376
$80,800,000
$57,583,2912017
1999
2030
NORTHPORT PLANT USAGE IS DOWN AND TAXES ARE UPPower plants, like cars, are worth less with age, if assessed fairly for tax purposes
Power plant usage will continue to decline on LIPA’s legacy steam plants, while taxes increase every year
Fair Taxes
�8LOCAL OFFICIALS SUPPORT TAX SETTLEMENTS IN THEIR DISTRICTSSupervisor Ed Romaine Announces Support for Town of Brookhaven Settlement (Port Jefferson Power Plant)April 4, 2018 - State of the Town Address
“We have a framework with LIPA to settle this case and avoid unnecessary costs that result from continuing this case. These taxes are paid by all our residents in their electric bills, but disproportionately benefit a small number of taxing districts near the plant…property assessments have to be just and fair. They’ve [school districts] collected for many years a great deal of money on a plant that some people say has been over-assessed. This property was out of line. We’re bringing it into line. So they will have to live the way other school districts do.”
“Nassau County Executive Laura Curran Supports Tax Settlements(E.F. Barrett and Glenwood Landing Power Plants)March 28, 2018 - State of the County Address
There are many “risks which go to the heart of our failed tax assessment system. The first risk relates to future tax certiorari refunds … and tax certiorari claims including utility claims for prior years. This amount is estimated to be more than $500 million. We are reviewing the pending utility litigation and we must ensure that we are not plagued with more debt.”
Brookhaven Supervisor Ed Romaine
Port Jefferson Village Mayor Margot Garant
Port Jefferson Mayor Margot Garant Approves Village of Port Jefferson Settlement (Port Jefferson Power Plant)April 16, 2018
Nassau County Executive Laura Curran
On the approval of the tax settlement: “Port Jefferson Village officials have approved a budget that increases taxes by a little less than 2 percent, Mayor Margot Garant said recently. She said the budget sets aside $107,439 in a restricted reserve account to prepare for an anticipated loss of revenue from payments in lieu of taxes made by the Long Island Power Authority on the Port Jefferson power plant.” - Newsday
ACHIEVING SUSTAINABLE TAX PAYMENTS �9
‣ LIPA’S SETTLEMENT PROPOSAL:
✓ Reduce taxes by 50% over 9 years;
✓ Waive refund liability of over $570 million owed by Town of Huntington to LIPA customers
* Includes Annual Cost of Financing a $570+ Million Refund Liability
LIPA PROPOSAL COURT ACTIONMonthly Tax Increase on
Average Household(Phased-In Annually)
Northport - East Northport School District $13
Suffolk County $0.06
Town of Huntington $0.60
Monthly Tax Increase
Northport - East Northport School
District$212
Suffolk County $0.88
Town of Huntington* $62
School Taxes Remain Below Area Average
�102018 NORTHPORT POWER PLANT SETTLEMENT PROPOSAL
Northport Power Plant P r o d u c e s t h e S a m e Amount of Energy as Caithness — at 8x the Taxes
Today, LIPA customers pay the equivalent of 20 Northport Power Plants:
9 years from now, LIPA proposes to pay the equivalent of 10 Northport Power Plants:
2017 LIPA Taxes (General & School) Settlement for YE 2027
Fair Taxes for 2017 ($2,375/mW)
$80,770,018 $40,385,009 $3,773,875
At termination of agreement, the four Northport units will be from 50 to 60 years old