Feature of solar pojects rests with LIPA

The future of solar energy home projects lies with decision by LIPA.

Extract of article by MARK HARRINGTON September 23, 2008 for News day com

As it marks a decade of existence, the Long Island Power Authority faces a sobering reality: Its costly past is crimping its future ambitions.

A mammoth $6.6-billion debt load, due in large part to the mothballed Shoreham nuclear power plant, and lots of expensive, long-term energy contracts are forcing LIPA to sharpen its pencil as it ponders new projects such as overhauling dirty old power plants and fostering renewable energy. Just this January, LIPA quietly cut the subsidy it offers for home solar panels.

Stan Fostek, an East Northport resident who installed a solar system with LIPA's help two years ago, grins as he talks about monthly electric bills as low as $3, down from a high of $450. "I don't know why more people don't do it," he said.

One reason, in addition to the high cost: Mass residential conversions to solar would reduce LIPA revenue. Were that to happen, the authority would be forced to increase rates to pay the long-term debt and the costs tied to its myriad energy-supply contracts, which aren't going away soon.

Some experts argue LIPA's strategy of continually planning for increased use is flawed, particularly in light of stabilizing electric use, expensive new conservation measures and a sharp drop-off from the go-go housing development of recent years.

But buried in the same survey was a surprising statistic: energy consumption per household actually decreased in 2006, as did a measure of energy use among businesses. Figures for 2007 show a slight increase.

Pennsylvania owned by FPL Energy. (FPL Energy also was to build the shelved wind-farm project).