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

SunEdison brings 14 MW of solar power to Long Island

05/29/2015 SunEdison signed agreements with five municipal entities on Long Island to build seven solar power plants totaling 14 MW D...

Solar power project gets OK from Minnesota regulators

05/29/2015

The utility's project would increase Minnesota's solar output sevenfold 

Met-Ed helicopters inspect 1,300 miles of transmission lines

05/29/2015 The inspections are designed to look for damaged wire, broken cross arms, failed insulators and other hardware problems no...

U.S. electric cooperatives prepare for hurricane season

05/29/2015

This year the NOAA predicts a 70 percent likelihood of 6 to 11 named storms  

GE installs solar power at New York factory

05/29/2015 The facility will become the first industrial scale solar project in Orange County and is fully qualified under NYSERDA’s ...

Penelec wraps up summer transmission and distribution inspections

05/29/2015 Cost-effective helicopter patrols have completed inspections on about 2,500 miles of transmission lines located in the Pen...
Who is paying the most for electric power in the U.S.?

Who is paying the most for electric power in the U.S.?

INDUSTRY STOCKS

ON DEMAND WEBCASTS

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...

How to deploy mobile forms + devices to speed up field service processes & reporting

Overcoming the pain points associated with any process is much simpler and more cost effective th...

Beyond Integration: Three Dynamics Reshaping Renewables and the Grid

In a unique industry research initiative, DNV GL gathered views from over 1,600 energy sector par...

Engaging the Small and Mid-sized Business (SMB) Marketplace

This session will outline how Duke Energy leveraged Voice of Customer insights, previous experien...

EL&P BUYER'S GUIDE PRODUCTS

Decontamination & Decommissioning

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

Cavitation Peening

AREVA developed its innovative solution for asset management, significantly extending the life of reactor components. Cavitation Peening is a perma...

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...

ATRIUM™ 11 for BWR Fuel

ATRIUM™ 11 design fuel – in operation since 2012 – provides significantly lower fuel rod power levels for power uprate margins, operational flexib...

POWERGRID PRODUCT LISTINGS

EtherMate® Industrial Ethernet - IO Modules

LioN-M ProfiNet device with 16 digital I/O channels, channels can be used universally as inputs or outputs, M12 socket, ro...

OFL280 FlexTester - Handheld OTDR

AFL's OFL280 FlexTester offers an unmatched combination of fiber test functions, ease-of-use, portability, and value.

ADSS Mini-Span® Fiber Optic Cable

AFL Mini-Span® All-Dielectric Self-Supporting (ADSS) cable is designed for outside plant aerial and duct applications in l...

TRM® 2.0 - Test Results Manager PC Analysis and Reporting

Test Results Manager 2.0 (TRM® 2.0) is an all-in-one analysis, viewer and reporting tool designed for use with NOYES fiber...

FEATURED ENERGY JOBS

View more Job Listings >>

POWERGRID International

May 2015
Volume 20, Issue 5
1505pg_C1

ELECTRIC LIGHT & POWER

April 2015
Volume 93, Issue 2
1503ELP_C1