LIPA To Cut 4.3 Percent From Electric Bills

UNIONDALE, N.Y. (CBSNewYork) -- The Long Island Power Authority is expected to cut its rates next month.

"We're able to lower the fuel portion of our bill by 4.3 percent," said Mark Gross of LIPA. "That will roll back bills probably to the level of 2005."

The cut will drop LIPA's rate to their lowest levels in five years. The reduction will save the average LIPA customer about $6.50 a month.

"Mainly two reasons: there's a very plentiful supply right now and it's been a mild winter so demand isn't high," Gross added.

As CBS 2's Vanessa Murdock reports, the news came as a welcome surprise to many on the Island.

"Oh yes, we're always excited when the rates go down," said Diane Knauf of Baldwin.

All customers benefit from reduced natural gas prices, but whether your total bill is less or not depends on who your provider is.

If you use the same amount of energy, LIPA and PSE&G customers should pay less.

Starting June 1, PSE&G rates will decrease by 3.6 percent, while LIPA rates will decrease by 4.3 percent starting April 1.

For Con Ed customers, fuel costs will likely decrease, but your total bill may not, due to rising service charges.

"I'm on disability SS, so that would help me a lot," said Jospeh Gutano of East Meadow.

"Every little bit helps in this economy. I think all Long Islanders are worried about energy costs, so this is a step in the right direction," said Richard Judge of East Meadow.

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