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

VIDEO: USDA invests $1.4 billion to improve rural electric infrastructure

10/20/2014 The U.S. Department of Agriculture Rural Utilities Service on Oct. 16 awarded $1.4 billion in loan guarantees to 35 organi...

VIDEO: Lockheed Martin says compact fusion reactor ten years away

10/20/2014 The Lockheed Martin Skunk Works team is working on a new compact fusion reactor that can be developed and deployed in as l...

VIDEO: S&C energy storage system to provide power grid support for PJM

10/20/2014 The 150-kW energy storage system provides fast-response frequency regulation for the PJM market, which serves more than 61...

Colorado Springs eyes heavy 2015 spending on coal emissions controls

10/20/2014 Colorado Springs Utilities has proposed a 2015 budget that includes heavy spending for new air emissions controls for its ...

VIDEO: Michio Kaku to predict next 25 years at DistribuTECH's 25th anniversary keynote

10/20/2014 As DistribuTECH attendees celebrate the past 25 years, Kaku will give a glimpse into what he expects of the next 25 years

VIDEO: Chile breaks ground on 141 MW solar power project

10/20/2014 Chile's President Michelle Bachelet presided over the installation of the first solar panel at the 141 MW Luz del Norte ph...

Itron expands Itron Riva with smart load control

10/20/2014 The solution allows utilities to manage load with confidence and realize the benefits of smart demand response at scale

ON DEMAND WEBCASTS

The Power of Behavioral Design: Lessons for Energy Efficiency Providers

Behavioral design principles are key differentiators when it comes to influencing consumer behavi...

3D BIM for Substations—Driving Efficiency from Design Through Operation and Maintenance

In this webinar, PESTECH will describe their transition to intelligent substation design and its ...

High Availability Networks. Application of IEC6439-3 Protocols for IEC61850 Process Bus implementation

Networks can now be built for the first time with genuinely uninterrupted data communication betw...

Understanding Moisture Dynamics in Power Transformers

While the need to measure moisture in power transformers has been well documented and is universa...

Regional Market Outlook for the WECC and ERCOT

Looking for an independent market outlook and analysis of the WECC and ERCOT power markets? ...

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...

FEATURED ENERGY JOBS

View more Job Listings >>

POWERGRID International

April 2014
Volume 19, Issue 4
1404pg-cover

ELECTRIC LIGHT & POWER

January 2014
cover