But 2027 Projected Budget Would Be Higher
By Hank Russell
The Long Island Power Authority has released a proposed operating budget for 2026, which would be lower than this year’s approved budget. However, the utility foresees a more expensive budget the following year.
LIPA recently introduced a proposed operating budget of $4.4 billion for next year, which is 1.8% less than the approved 2025 budget of $4,3 billion. (All figures are approximate.)
According to the utility company, ratepayers may see a 3.3% reduction in their bill next year, which amounts to $6.53. Of that amount, $1.64 is from an estimated decrease in energy use per the typical residential customer. The projected typical residential customer bill for 2025 is $198.83, while the proposed bill in 2026 would be $192.30.
In addition, the proposed 2026 budget would call for a decrease in power supply costs. Next year, LIPA is expected to spend approximately $1.98 billion on power, which is 4.4% less than the figure in the projected 2025 budget of $2.07 billion.
Other highlights from the 2026 budget include:
- $14.2 million for new initiatives, including planning for new information technology systems, business continuity plans, continued support for the transition to Time-of-Day rates and additional procurement services
- a 3% increase in wages, totaling $14.7 million
- a 2.7% increase in non-labor expenses based on projected by $7.4 million
- a $6.3 million decrease in employee retirement benefits
- a $1.5 million reduction in the storm budget to $82.0 million
- $698 million in operating expenses, the same as in 2025
But the 2027 budget is expected to rise to $4.5 billion, which would be 3.9% higher than the 2025 budget and an increase of 4.7% over the proposed 2026 budget, based on the numbers from LIPA. In 2027, the utility company plans to spend a projected $2.1 billion on power costs, which is 1.4% more than what LIPA is projected to spend this year and a 6.1% rise over the proposed amount to be spent next year.
LIPA also released its proposed capital budget for next year, which is $1.04 billion. The capital budget funds long-life infrastructure investments such as transmission lines, substations, poles. Wires and storm hardening, as well as information technology. The proposed capital budget is a 3.1% increase (or $30.7 million) because of the mandatory refueling costs related to LIPA’s 18% ownership of the Nine Mile 2 nuclear power authority.
The budget consists of $220.0 million for authorizations for projects to be budgeted within the PSEG Long Island capital budget; these pending project authorizations include transmission and distribution system initiatives, with a $140.3 million proce tag; information technology and cybersecurity, at a cost of $52.1 million; customer service projects, costing $5.4 million; and other general plant and property acquisition, at a combined price of $21.7 million.
Public hearings on the budget will take place on November 18 at 6 p.m. at the Rockaway YMCA, located at 207 Beach 73rd Street in Queens; November 24 at 10 a.m. at the H. Lee Dennison Building, 100 Veterans Memorial Highway in Hauppauge; and November 24 at 6 p.m. at LIPA headquarters, located at 333 Earle Ovington Boulevard in Uniondale.
The board of trustees will vote on the budget on December 17.