Legislation signed, restructuring utility operations on Long Island
ALBANY - Legislation that dramatically revamps the electric utility on Long Island was signed Monday by Governor Andrew Cuomo. The legislation privatizes utility operations on Long Island, improves customer service, including stabilizing rates and enhancing emergency response and preparation; reduces the cost of Long Island Power Authority (LIPA) debt; and implements tough state oversight for the new utility company. It also achieves savings to allow the new utility to seek a rate freeze for 2013, 2014 and 2015.
“The legislation that was signed into law today ends the LIPA as we know it, and creates a new utility system that puts Long Island ratepayers first,” Governor Cuomo said. “LIPA has offered lackluster service for too long and after its failure to perform during Superstorm Sandy it was clear we needed a change. With today’s bill signing, ratepayers on Long Island are getting a utility whose operations will be run by PSEG with its award winning record of performance during disasters. This legislation also seeks to establish a rate freeze for this year and the next two years while adding, for the first time, real state oversight of Long Island’s utility operations to ensure continued service and accountability. Today marks a bright new day for residents and businesses on Long Island.”
In response to LIPA’s failures during and after Superstorm Sandy, Governor Cuomo convened a Moreland Commission to investigate the utility company’s response, preparation, and management, among other utility companies. As a result of this investigation, the Moreland Commission concluded that LIPA’s failures were the result of a dysfunctional bi-furcated management structure that allowed poor customer service, high rates, lackluster storm preparations, and inadequate infrastructure to persist without being addressed.
The legislation signed today sets in motion an end to the failed management structure of LIPA, gradually giving PSEG full authority over the utility’s day-to-day operations including budgeting, maintenance, storm preparedness and response, infrastructure improvements, and energy efficiency and renewable activities.
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