Provides that bonds issued by the Long Island power authority must be authorized by a majority of the ratepayers of the authority by a public referendum after public hearing

BILL NUMBER:S4171

Title of bill

An act to amend the public authorities law, in relation to the authorization for bonds issued by the Long Island power authority

Purpose

The purpose of this bill is to empower ratepayers to have some say in any further borrowing by their local power authority for which they will ultimately be responsible to pay through long-term increased rates.

Summary of provisions

Section 1 amends section 1020-k of Public Authorities Law by requiring that any new bonding shall be subject to a public referendum after public hearings in the affected counties.

Section 2 sets the effective date.

Justification

One of the purposes of the LIPA Reform Act of 2013 was to control the debt of the authority, which is currently at $7.8 billion. LIPA is now planning to issue new debt of approximately $300 to $400 million, per year, over each of the next four years. This would add $1.2 to $1.6 billion to its already staggering debt, which would fall squarely on the shoulders of LIPAs ratepayers, who are already burdened with the highest cost of living in the country. Given the extraordinary debt load and previous efforts to contain it, with varying degrees of success, any additional debt should only be taken on with informed public consent.

Fiscal implications

None

Effective date

Immediately after the bill has become law.