New York Utility Boss Apologizes to Slain Soldier's Family for Flag Hanging Fee Long Island Power Authority CEO Michael Hervey will now pay the fee himself.

May 26, 2011 -- The chairman of a New York utility company apologized today to the family of a soldier killed in Afghanistan for charging a fee to hang American flags from their poles during a ceremony to honor him.

Howard Steinberg, chairman of the Long Island Power Authority, reached out to the family of Lt. Joseph Theinert a week after the memorial service in the small town of Shelter Island.

"We want to apologize to the family of Lieutenant Theinert," Steinberg said in a statement. "The trustees and I are all very upset about this. We do not support the idea of charging for flags to be hung on LIPA poles, nor do we approve of the way it was handled before it was brought to LIPA Chief Operating Officer Mike Hervey's attention. This will not be an issue going forward."

After the flag flap became public earlier this week, Hervey offered to pay the flag fee out of his own pocket.

Shelter Island held a memorial parade last Thursday to honor Theinert, a town resident who was killed in Afghanistan. The service included having members of Theinert's old unit march along a flag draped street that was named after Theinert.

Then they got the bill. LIPA charged them for hanging the American flags from its utility poles.

The resulting outcry prompted a change of heart from the embarrassed power company. Hervey spoke to the Theinert family on Tuesday in addition to offering to pay the $23.75 tab personally.

New York Utility Embarrassed Over Flag Flap

But it wasn't the cost that left some folks sizzling like a summer barbecue.

"It was outrageous," County Legislator Ed Romaine told ABC News. "How do you charge for putting up American flags? LIPA didn't even put up the flags. The American Legion did. To do something patriotic and get charged for it was ridiculous."

Romaine also said that LIPA did not own all the utility poles along the parade route because Verizon owned some of them.

"They (Verizon) never asked for a fee. They said no we are not even bothering with that. LIPA did the wrong thing. This is an incredible situation. I mean come on," the legislator said.

The memorial for Theirnert featured the Army's First Cavalry Banshee troop from Fort Drum N.Y. Members of the troop served with Theinert, who was killed in Afghanistan a year ago. The troops were escorted along a parade route of State Route 114, part of which had been renamed for Theinert.

A LIPA spokesperson told ABC News that charging for the use of the utility poles was a state law. Drew Biondo, a spokesman for state Sen. Ken LaValle, told ABC News, "The law applies to for profit companies. Not local governments and municipalities. We think it's an over interpretation of the law."

According to Biondo, local politicians held a teleconference with LIPA's legal team late Wednesday. Lawyers from the power authority told them there is no need for corrective legislation. Both sides say they will continue discussing this issue and speak with officials in the state capital of Albany to get clarification on the interpretation of the law to resolve future situations.

"It will be resolved," said Biondo.