N.Y. strikes deal to privatize LIPA

Sponsored by

Policymakers in New York State have reportedly reached a deal to bring the state-owned Long Island Power Authority under private control. The agreement would also freeze LIPA's rates until 2015, according to Reuters.

Gov. Andrew Cuomo, who previously called LIPA "broken," announced the deal June 19.  LIPA was the subject of many bad headlines following Hurricane Sandy as more than a million of the utility's customers were left without power and the outage restoration process took weeks in some cases.

The proposed deal was already partially in the works since LIPA's service agreement with National Grid was set to run out by the end of 2013 and Newark, New Jersey-based Public Service Electric & Gas Co. scheduled to take over as Long Island's power grid operator.

Cuomo's proposal would see PSE&G's role expanded to take over the day-to-day operations handled by LIPA — including storm response, outage restoration, budgeting, maintenance and infrastructure improvements, according to Reuters.

Cuomo also wants to cut LIPA staff from 90 to 20 and remove 10 members of the utility's board of directors, which currently has 15 members.

LIPA will still be allowed to receive federal disaster funding and will maintain certain tax advantages of a publicly owned utility, according to Cuomo.

According to an April survey by the American Customer Satisfaction Index, LIPA's customer satisfaction ranking dropped 26 percentage points following Hurricane Sandy. Customer satisfaction is ranked at 43 percent, which is the lowest score recorded by ACSI for any utility.

The utility is $6.7 billion in debt, according to reports.

PSE&G was named America's most reliable electric utility by PA Consulting, according to the utility's website. The utility's response to Hurricane Irene also won an "outstanding response" aware from ReliabiltyOne, an industry group.

Sponsored by

 

CURRENT ARTICLES

NHL, Constellation increase energy efficiency at hockey arena

09/03/2015

Cambria County War Memorial Arena to install energy efficient LED lighting technology

GridLiance to buy transmission assets in Missouri, Oklahoma

09/03/2015

Upon close, GridLiance will assume full operational responsibility of the transmission assets 

K2 wind farm opens in Ontario, generating 270 MW of wind power

09/03/2015

Facility generating about $15 million in funding for community initiatives over the next 20 years

South Mississippi Electric to add to its solar energy portfolio

09/03/2015

The project is expected to be operational by December 2016

FPL files to reduce rates, expand energy efficiency programs

09/03/2015 Businesses will also see lower rates, with anticipated savings in the range of about 2 to 6 percent for typical business c...

Appalachian Power files to build transmission improvements in Virginia

09/03/2015 The proposed Bland Area Improvements Project will involve upgrading about 20 miles of existing transmission line 

Kemper power plant overruns climb another $25 million

09/03/2015

Mississippi Power says the company, not its 186,000 customers, will cover the additional money

FEATURED ENERGY JOBS
View more Job Listings >>

INDUSTRY STOCKS

ON DEMAND WEBCASTS

Leveraging Intelligent Infrastructure to Achieve Your Smart City Vision

The increasing migration of the U.S. population back into urban centers brings a set of challenge...

Successfully Integrating Solar: A Proactive Approach

•      What does the increasing solar penetration mean to you as a utili...

Horizon Utilities Goes Mobile. Tablets…Then Ongoing Field Feedback Drives Success.

Horizon Utilities of Hamilton, Ontario went from paper to Tablet PCs over a 3 year period with si...

Solar + Storage: Capturing Opportunities and Overcoming Challenges

The convergence of solar and energy storage applications is under way. The combined application o...

Storage Enters the Global Stage: What’s the value proposition for your region?

For electricity storage, the events of the last two years have shown that the skepticism around t...

EL&P BUYER'S GUIDE PRODUCTS

Aurora™

Aurora™ is a proprietary blend of alumino-silicate based minerals engineered to treat a boiler's fireside system against slagging, fouling and corr...

Swage Bus Accessories

By using a compression technology process called "swaging," aluminum bus accessories can be installed without a welder. Products include bus couple...

Decontamination & Decommissioning

Decommissioning strategy development, cost estimates, plant modifications; system and building decontamination; RV segmentation; large component re...

Nuclear Horizontal Modular Storage (NUHOMS®)

AREVA TN’s NRC-licensed NUHOMS® system ensures the highest safety and lowest dose performance. With no tipping, tripping and sliding, you have the...

POWERGRID PRODUCT LISTINGS

Meyer - Engineered Poles

As your comprehensive resource for any configuration of tubular steel structure, Meyer works closely with you to develop e...

LD Poles

The standard designs and high-strength material used in the fabrication of our Light Duty steel poles insures confidence t...

Standard H-Frames

Meyer Steel Structures has compiled a database of existing steel H-frame designs that could be used to quickly meet your n...

Systems & Utility Technology Selection

BRIDGE’s utility business and functional system experts with specific experience in today’s ‘best of breed’ business syste...

POWERGRID International

July 2015
Volume 20, Issue 7
1507pg_C1

ELECTRIC LIGHT & POWER

June 2015
Volume 93, Issue 3
1505ELP_C1