LIPA Proposes New Billing Method: Real-Time Costs or Estimates?

Long Island Power Authority has proposed changing to a new billing method, a proposition that could have a big impact on the average homeowner's electrical bills.

Newsday reports LIPA's proposal to switch to a new billing method, billing ratepayers based on real-time costs instead of annual estimates, was questioned by residents at a public hearing held Monday morning.

The utility company has proposed scrapping its current method of projecting fuel costs at the beginning of a year in favor of billing its customers based on the real-time costs of acquiring the fuel it needs to provide electricity.

LIPA said the pros of real-time cost billing method is it would help avoid the utility company from over collecting from its customers, and add transparency to its billing.

However, several taxpayers questioned how this change in billing methods would impact the average customer, as no study has been done. Plus, residents could potentially see month-to-month spikes or swings in their bills based on the price of natural gas, or other fuels needed to power LIPA's plants.

Tell us, what do you think: Does LIPA need to change its billing method? Would you like to see a switch from annual estimates to real-time costs? What concerns do you have?

Tell us in the comments below.

Read more on Newsday [subscription required] about residents' reaction to LIPA's proposed new billing method.