LIPA And PSEG Long Island Agree To New 4-Year Deal

UNIONDALE, NY — The Long Island Power Authority and PSEG Long Island agreed to a new four-year contract, Newsday reported.

The deal comes after PSEG Long Island was severely criticized for its preparation and aftermath of Tropical Storm Isaias in August 2020.

LIPA owns the electrical grid and said the new pact would include vital ways for New Jersey-based PSEG to be held accountable, including a cap on its $80 million annual fee, Newsday said.

"PSEG Long Island is pleased to have come to an agreement with LIPA retaining us as service provider. We are eager to bring this collaborative agreement to closure following review by the State of New York," Daniel Eichhorn, PSEG Long Island president and chief operating officer, said in a statement.

However, not all are "pleased" with the deal for PSEG LI.

Reimagine LIPA, a coalition of more than 30 organizations, said this in a statement:

"The LIPA Board, with most of its trustees on their way out the door, has chosen to serve former Gov. Andrew Cuomo one last time by agreeing to new terms with PSEG, a deal that if approved would continue a failed public-private model. It is no surprise there are members of the board who continue to ignore ratepayers, who pay exorbitant electric bills for unreliable service."

Before the final approval, LIPA trustees must sign off on the deal, then public hearings on Dec. 2 and at board meetings on Nov. 17 and Dec. 15. The agreement must be approved by the state attorney general and state comptroller, Newsday reported.

"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," Eichhorn said.