NATION : Utility Settles Racketeering Suit
A settlement was signed today in a racketeering lawsuit against the Long Island Lighting Co. that threatened to bankrupt the utility, but attorneys disagreed on whether it would result in the closing of LILCO’s Shoreham nuclear power plant.
The lawsuit, brought by Suffolk County on Long Island, said the utility lied to the state Public Service Commission to obtain rate increases so it could continue building the still unlicensed Shoreham plant. The agreement calls for creation of a citizens’ advisory board that will represent a cross section of the utility’s more than 1 million customers.
Attorney Judith Vladeck said she is recommending that ratepayers accept a $400-million reduction in their electric rates over a 10-year period, based on an understanding that Shoreham will be closed and dismantled.
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