Village files claim against National Grid

The Village of Port Jefferson has filed a complaint accusing the British-owned utility National Grid of engaging in a "sophisticated scheme to manipulate energy markets" on Long Island.

The complaint, filed with the Federal Energy Regulatory Commission, asks the agency to investigate the claim that National Grid's failure to significantly overhaul or sell its 15 power Long Island plants is part of a scheme to discourage competition and keep energy rates high.

Virginia Limmiatis, a National Grid spokeswoman, said the company is reviewing the complaint and plans to submit a response to FERC at the appropriate time. "We believe the allegations in the complaint are without merit and that we have managed our Long Island generation assets in a manner that conforms with applicable market rules and regulations," she said.

Village officials weren't available for comment.

All the plants are contracted to the Long Island Power Authority under a pact that expires next May.

LIPA pays about $29 million annually in taxes for hosting the little-used Port Jefferson plant to the town, village and school district. The payment accounts for about half the Port Jefferson school district's budget.

LIPA has filed tax grievances, seeking to lower the tax payments on most of its properties and several National Grid plants. Last year, LIPA reached a temporary settlement with the Village of Port Jefferson that reduced the assessment on the Port Jefferson plant from $11,860,945 to $10,674,852. The agreement lasted a year, while a permanent solution is worked out, LIPA and village officials have said.

In 2010, LIPA paid the village $2.4 million in taxes, nearly 30 percent of the village's $8.4-million budget.