Long Island residents brace for higher electric bills with LIPA rate hike

LONG ISLAND - Long Island residents may soon see an increase in their monthly electric bills as the Long Island Power Authority (LIPA) is considering a 3.9% rate hike in its 2025 budget. If approved, the increase will translate to an additional $7 per month for the average household.

John Rhodes, Acting CEO of LIPA, noted that despite the increase, LIPA’s rates remain some of the lowest in the region. 

"The average customer will see an increase of about $7 a month," he said. 

Rhodes emphasized that LIPA, as the utility owner, is responsible for setting budgets and rates, while PSEG provides the electric service to customers in Long Island and the Rockaways. A public comment session on the rate hike will be held later this month.

LIPA attributes the rate hike to rising power supply costs and an increase in overall electricity usage. Rhodes explained that while these adjustments may increase monthly bills, residents could benefit from savings by adopting electric vehicles and reducing fuel reliance. 

"When you transition from fuel to electricity, you’re not spending on gasoline or heating oil," he said. "You save probably $200-300 a year when you make that switch."

The budget will be put to a vote next month.