LIPA Approves New Deal With PSEG Long Island

UNIONDALE, NY — Trustees at the Long Island Power Authority have approved a new contract with PSEG Long Island.

The vote was overwhelmingly accepted by the trustees, 8-1, Newsday reported on Wednesday.

It is not expected to take effect until 2022, as the state attorney general and comptroller still need to sign off on it, Newsday said.

PSEG Long Island President and Chief Operating Officer, Daniel Eichhorn said in a statement: "PSEG Long Island is pleased that LIPA’s board has voted in favor of retaining us as service provider. We are eager to bring this collaborative agreement to closure following review and approval by the State of New York. We are proud of our employees, their achievements and the strategic improvements we have made since 2014 and this agreement reflects that legacy of performance."

Approval by LIPA comes amid severe criticism for PSEG LI's handling of Tropical Storm Isaias last year. The utility company was lambasted for its poor customer service and a task force showed PSEG is using an "out-of-date" storm computer system, Newsday said.

The new deal was met with resistance by Reimagine LIPA, a coalition of more than 30 organizations.

"The LIPA Board rewarded mismanagement and negligence with its decision to renew its wasteful and expensive operating contract with PSEG. Throughout the year, LIPA’s ratepayers have spoken out against PSEG’s incompetence and in favor of a fully public system. The LIPA Board ignored them. We will soon hear PSEG’s lies as the company attempts to explain why the terms of this new contract are not being implemented," the Long Island Progressive Coalition’s Ryan Madden said in a statement on behalf of Reimagine LIPA. "Meanwhile, we will work with our allies in the state senate and assembly to enact legislation that ensures this is the last contract LIPA enters into with a private partner and begins a path toward full municipalization. We continue to call on Gov. Hochul to partner with us in this effort.”

Eichhorn added: "PSEG Long Island looks forward to continuing to serve Long Island and the Rockaways, further improving system reliability, enhancing customer service and supporting the State’s Clean energy goals, while being an engaged and responsive community partner."