How was the Settlement Agreement crafted to benefit ratepayers in Suffolk County, Nassau County and the Rockaways?
Because of LIPAs ability to borrow funds at low, tax-exempt financing rate, LIPA did so on behalf of Suffolk County and the Taxing Jurisdictions. LIPA then agreed to administer the funds across ratepayers in all three areas. This plan was put into place to refund all overpayments to all LIPA ratepayers over a five-year period and then recover the costs through a Surcharge to all Suffolk County ratepayers over a 26.5 year period.
