Huntington Councilman Questions LI Power Authority Tax Grievance

NORTHPORT, NY — Conflict between Huntington Town officials and the Long Island Power Authority over issues at the Northport Power Station continue, with Councilman Eugene Cook's office raising new questions about the authority's tax grievance filing. The Town of Huntington and the utility have tried to reach a settlement in State Supreme Court on the authority's tax challenges. The authority pays $84 million in property taxes a year.

Jo-Anne Mendes, legislative aide to Cook, on Friday said the utility didn't follow proper protocol by acquiring permission from the state Public Authorities Control Board.

"LIPA's plan to use their $5 billion power purchase plan to file a Supreme Court action to challenge real property taxes was not stopped," Mendes said in a news release. "I spent the last few months looking to find out how LIPA was able to get approvals that Bloomberg and Bezos could not. Long story short, LIPA cheated; they didn't apply to the PACB for review and approval. LIPA knew if they followed state law and requested permission from PACB in 2010, 2011, and 2012 and thereafter to file the tax challenges using their Power Purchase Agreements with Nat Grid, they would be stopped, just like Bloomberg and Bezos."

Cook's office used FOIL requests to search for any record of the control board review.

A spokesperson for LIPA denied the allegations, saying the councilman was incorrect that seeking a property to be "fairly taxed" required the control board's approval.

"LIPA has the right to grieve unfair tax bills the same way homeowners do, and in this case, LIPA is grieving the highest property tax bill in the United States on behalf of all Long Island homeowners," the spokesperson said in a statement. "After a decade in the courts and on the cusp of a judgement, the councilman's latest theory is once again unrealistic and distracts from ongoing talks to work out a compromise."

Democratic State Sen. James Gaughran said in a statement he supported Cook's efforts.

"LIPA has launched a full-scale assault against taxpayers across Long Island with reckless tax certiorari challenges in communities from Huntington to Levittown to Island Park," Gaughran said. "Councilman Gene Cook has brought further concerns related to LIPA's actions to my attention and I have asked Attorney General James to look into his concerns."

Gaughran thanked Cook for trying to protect Long Island residents from what he called LIPA's "senseless actions" and vowed to continue fighting alongside him.