The New York Times said in an editorial on Wednesday , Jan. 1 :The proposed merger of Brooklyn Union Gas and Long Island Lighting Co. should provide Long Island residents some modest financial relief .But those residents will still pay more for their utility bills than most Americans do .The solution to their problem is for state leaders to put aside partisan bickering and agree on a plan that would allow the state to assume LILCO 's huge debt .A merger would allow the companies to cut administrative and other costs .It would also bring Brooklyn Union 's highly regarded management skills to bear on LILCO 's gas operations .Most experts agree that the merger could produce savings of about $ 1 billion over 10 years , knocking a few percentage points off utility rates .But the major reason that Long Island rates are high is that LILCO makes exorbitant interest payments on money it borrowed to build a $ 5.5 billion nuclear plant , Shoreham , which Gov. Mario Cuomo refused to open following intense opposition by nearby residents .The problem could be solved by engaging in what amounts to a legal tax dodge .A state agency , the Long Island Power Authority , would take over part of LILCO .The state-owned utility would no longer pay federal taxes on income or dividends to shareholders .It could borrow money at tax-free , therefore low , interest rates .Replacing high-cost debt with tax-free debt and other savings would cut utility rates by perhaps 12 percent .In effect , the state would be shifting hundreds of millions of dollars of interest payments each year onto the federal Treasury .Democrats and Republicans agree that a partial state takeover is the answer .But some Democratic leaders want the state to take over almost all of LILCO , including its transmission wires and power plants .Under this plan , the newly formed Brooklyn-LILCO would keep only LILCO 's gas operations .Republican leaders would transfer control of only LILCO 's transmission and distribution facilities , permitting Brooklyn-LILCO to keep LILCO 's power plants as well as its gas operations .By controlling the transmission lines , the state could invite utility companies around the country to compete to sell electricity to Long Island customers .Either plan could work as long as the state makes sure there are additional transmission lines to the Island so that other power companies can compete for business .Once Albany resolves how to take over LILCO 's debt payments , then Brooklyn Union and a pared-down LILCO can complete merger plans .But if the companies merge without a state takeover of LILCO 's debt , Long Islanders will reap little more than scraps .