Long Island Lighting Co – ‘10-K’ for 3/31/98 – EX-18

As of:  Thursday, 5/28/98   ·   For:  3/31/98   ·   Accession #:  922423-98-544   ·   File #:  1-03571

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Annual Report   —   Form 10-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-K        Annual Report                                        139    779K 
 2: EX-10.(AA)(11)  Consulting Agreement                               1      8K 
 3: EX-18       Letter Re: Change in Accounting Principles             1      7K 
 4: EX-23       Consent of Independent Auditors                        1      6K 
 5: EX-24       Power of Attorney                                     14     35K 
 6: EX-27       Long Island Lighting Company FDS Ut (Unaudited)        2±     8K 

EX-18   —   Letter Re: Change in Accounting Principles

                                                                      Exhibit 18

May 22, 1998                                                                    

Anthony Nozzolillo                                                              
Senior Vice President and Principal Financial Officer                           
Long Island Lighting Company                                                    
175 E Old Country Road                                                          
Hicksville, NY  11801                                                           

Dear Mr. Nozzolillo:                                                            

Note 1 of Notes to the  Financial  Statements  of Long Island  Lighting  Company
included  in its Annual  Report on Form 10-K for the year ended  March 31,  1998
describes a change in the method of accounting  for the annual  amortization  of
the Rate Moderation  Component (RMC) of a regulatory  asset from a straight line
method to a method  which is  computed  based upon  monthly  forecasted  revenue
requirements.  You have  advised  us that you  believe  that the  change is to a
preferable method in your circumstances  because the monthly amortization of the
RMC, which varies based upon each month's forecasted revenue requirements,  more
closely aligns such  amortization with the Company's cost of service producing a
better matching of revenue with the related expense for reporting  within a rate
year.                                                                           

There are no  authoritative  criteria for  determining a "preferable"  method of
accounting for the annual  amortization of the RMC, however we conclude that the
change in the method of accounting for the annual  amortization of the RMC is to
an acceptable  alternative method which, based on your business judgment to make
this change for the reason cited above, is preferable in your circumstances.    

Very truly yours,                                                               

/s/ Ernst & Young LLP                                                           
---------------------                                                           

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘10-K’ Filing		Date		Other Filings
Filed on:		5/28/98		8-K
		5/22/98
For Period End:		3/31/98
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