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

Your consumers take on distributed generation

01/30/2015 Distributed generation, often also referred to as decentralized energy, is a complex and essential topic for today’s utili...

DistribuTECH 2015 expected to be largest in event history

01/30/2015

The world's largest electricity T&D show is on track to draw more than 10,000 attendees

DistribuTECH is the place for networking

01/30/2015

Here are a few items to help plan your time and make the most of your DistribuTECH 2015 experience

Siemens to provide long-term service at Blythe Energy Center in California

01/30/2015

The customer is AltaGas Ltd, headquartered in Alberta, Canada 

DOE announces five-year renewal of funding for first energy innovation hub

01/30/2015 This will help enable the role that nuclear energy has in providing dependable and affordable energy to America while adva...

Maine activists push solar power, energy efficiency bills

01/30/2015 The six-bill package outlined by the Environmental Priorities Coalition includes measures that would provide incentives fo...

NextEra Energy will not lay off Hawaiian Electric workers after merger

01/30/2015 An official at NextEra Energy told Hawaii lawmakers that his company does not plan to lay off staff if it acquires Hawaiia...

INDUSTRY STOCKS

ON DEMAND WEBCASTS

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

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

When Grid Optimization is Not Enough: Making Cents of Disruptive Change.

Electric utilities today face unprecedented volatility and business challenges. To stay competiti...

Avoiding the Pitfalls of Premium Power

Premium power is an increasingly valuable tool for utilities and municipalities, who can charge m...

The Integrated Operating Model Creating an Advanced Outage Management Environment to Control the Grid

Amy Hime, Senior Manager of Engineering and Asset Systems at Enersource, will discuss the journey...

Benefits of a Managed Service System

Attend this webinar, sponsored by Itron, to understand how utilizing managed services can optimiz...

EL&P BUYER'S GUIDE PRODUCTS

MITEM Corp

Provides CRM solutions for regulated U.S. public utilities. The product, MitemView integrates differently designed systems to share critical data a...

Resources on Demand

Manages resource requests, tracks personnel movements, and supports lodging/logistics during a power restoration event.

Smart Grids

Quanta is contributing to its customers' smart grid initiatives by installing technology on power networks to provide energy management solutions f...

Horizontal Directional Drilling

With 28 small, mid-sized and large drilling rigs, Quanta Pipeline Services is one of the largest horizontal directional contractors in the world fo...

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...

Low-Smoke Zero Halogen Premise Distribution Cable

AFL’s Low-Smoke Zero Halogen (LSZH) distribution cable offers all of the benefits of a traditional 900 µm based optical ca...

OFL280 FlexTester - Handheld OTDR

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

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

October 2014
Volume 19, Issue 10
1410pg_C1digital

ELECTRIC LIGHT & POWER

October 2014
Volume 92, Issue 5
1409ELP-cover_digital