Will PSEG Replace LIPA?

John Mitty Saturday, April 27, 2013

Hurricane Sandy drew attention to a number of deficiencies in the local and state governments, one of which was LIPA, the contractor which handles Long Island’s power needs.  Repairs to power lines were slow, and many residents had no power for weeks following Sandy, which in the cold winter months was more than an inconvenience.  Furthermore, companies that relied on power to conduct their business were unable to operate. 

In response to the criticisms leveled at LIPA, Governor Cuomo has proposed that LIPA’s current responsibilities be passed over to the Newark, New Jersey-based Public Service Electric and Gas Company (PSEG).  This company already was going to take over the electric grid on Long Island as of next year, so the new agreement would expand the company’s role and also speed up the transition.  While LIPA would still own the electric system, PSEG would take care of all operations.  “Nothing’s a done deal here,” Larry Schwartz, secretary to the governor, stated while talking to the press, but added that the PSEG plan “is an option that we’re now focusing on and pursuing.”  Privatization of the electric grid is still on the menu as well, but is becoming increasingly less likely. 

jmitty@longislandyellowpages.com

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