The Nation - News from Feb. 15, 1989

The Long Island Lighting Co. agreed to $400 million in rate reductions and refunds to settle a racketeering lawsuit accusing the utility of lying to obtain more money from customers for its Shoreham nuclear power plant. The settlement of the suit, which had threatened to drive LILCO into bankruptcy, did not resolve the fate of the still-unlicensed and financially troubled Shoreham plant. The agreement between LILCO and a lawyer appointed to represent more than 1 million customers calls for $390 million to be distributed in rate reductions over a 10-year period beginning in June, 1990. An additional $10 million will be set aside for former ratepayers.