Long Island Power Authority

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For the former power provider for the Long Island region, see Long Island Lighting Company.
Long Island Power Authority
Type Government-owned corporation
Industry Energy industry
Founded 1985-2014 (LIPA)
Founders New York State: Long Island Power Act of 1985 (LIPA)
LIPA Reform Act of 2013 (PSEG)
Headquarters Uniondale, New York, United States
Area served Nassau County, Long Island, NY
Suffolk County Long Island, NY
Rockaway, Queens, NY
Key people David M. Daly, President & COO
Ralph V. Suozzi, Chairman
Services Electricity
Revenue $3,664,976,000 (2006)
Operating income $364,231,000 (2006)
Net income $118,170,000 (2006)
Owners New York State
Website lipower.org (Trustees)
psegliny.com (Customers)

Long Island Power Authority or LIPA [ "lie-pah" ] is a municipal subdivision[1] of the State of New York. LIPA was originally created under the Long Island Power Act of 1985 to acquire the Long Island Lighting Company (LILCO)'s assets and securities after the cancellation of the Shoreham Nuclear Power Plant. A second Long Island Power Authority (LIPA), a wholly owned subsidiary of the first, acquired LILCO's transmission and distribution system in May 1998. LIPA currently is responsible for the oversight and ownership of the former LILCO electric grid on Long Island now branded, operated and managed by PSEG since January 1, 2014. Before that point, LIPA had played a significant role in day-to-day operations and the system was run under its brand name, though National Grid USA (previously Keyspan Energy) maintained its transmission and distribution system under a management services agreement that expired on December 31, 2013.

LIPA's Long Island retail electric system provides electric service to over 1.1 million customers in Nassau and Suffolk counties, and the Rockaway Peninsula in Queens. PSEG and LIPA do not own or operate any electric generation or retail natural gas assets on Long Island.

LIPA's Long Island transmission voltages are 345,000, 138,000 and 69,000 volts, subtransmission voltages are 33,000 and 23,000 volts, and distribution voltages are 13,200 and 4,000 volts.

On January 24, 2007, then-Governor Eliot Spitzer announced that Kevin Law would replace Richard Kessel as Chairman of LIPA until the fall when a new Chairman would be named and Law would become Chief Executive Officer of LIPA.[2] On October 8, 2007, Law took over as President and CEO.

Kevin Law stepped down on September 1, 2010 in order to become the new President of the Long Island Association. Chief Operating Officer Michael Hervey assumed the responsibilities until a new CEO and President is selected by the LIPA Board of Trustees. David M. Daly is the current President and COO of PSEG Long Island, while Ralph V. Suozzi is the chairman of LIPA's Board of Trustees.

LIPA and National Grid caught much media criticism in their response to Hurricane Sandy.[3] As a result of criticism in the response to Sandy, numerous key people at LIPA have resigned. Michael Hervey, COO of LIPA, resigned on November 13, 2012 for this very reason.[4] Though it has not been officially confirmed whether these resignations were caused by the response to Sandy, Bruce Germano (VP of Customer Service) and X. Cristofer Damianos (Member of the Board of Trustees) resigned on November 27, 2012, and most importantly, LIPA chairman Howard Steinberg also resigned on November 30, 2012.[5][6]

Privatization[edit]

On December 15, 2011, LIPA selected PSEG of New Jersey, the largest electric utility of that state, to take over management and operation of the electric grid from National Grid, starting in January 2014.[7] At first, this agreement was similar to the current agreement with National Grid, only giving PSEG the responsibility of operating and maintaining the electric grid.

On January 9, 2013, New York governor Andrew Cuomo called for the privatization of LIPA in his State of the State speech. Even though the governor appoints nine of the fifteen trustees to serve on the LIPA Board he (Andrew Cuomo) cited their inability to quickly recover from Hurricane Sandy among other incidents.[8] In May, he announced a plan to drastically increase PSEG's responsibility in the operation of LIPA, giving it near complete control of the operation, including all day-to-day operations, essentially privatizing LIPA.[9] The Long Island Power Authority would simply exist as the owner of the system and holder of its debt. The plan is not supported by local residents but by elected officials, and must pass the state legislature. On July 29, 2013 a law was passed making LIPA's operations to be effectively controlled by PSEG beginning in 2014. On January 1, PSEG has rebranded the LIPA system "PSEG Long Island" as it took over operations, effectively removing the LIPA name from the public eye.

See also[edit]

References[edit]

  1. ^ Navigant Consulting, Inc. "Long Island Power Authority Biennial Report", August 31, 2010.
  2. ^ Rather, John. "New Governor, New Energy Czar", The New York Times, January 28, 2007. Accessed September 24, 2008.
  3. ^ "Frustrated Long Island residents enter day 12 of no power". Fox News. November 10, 2012. 
  4. ^ "Michael Hervey, COO of LIPA, Resigns After Criticism For Slow Hurricane Sandy Response". Huffington Post. November 13, 2012. 
  5. ^ "Top LIPA exec, trustee announce resignations". Newsday. Retrieved 27 November 2012. 
  6. ^ "LIPA chairman Howard Steinberg resigns". Newsday. Retrieved 30 November 2012. 
  7. ^ LIPA Press Release. "LIPA Board Selects PSEG to Operate the Long Island Electric Grid". LIPA, December 15, 2011.
  8. ^ "Governor's State of the State executive summary". Legislative Gazette. Retrieved January 9, 2013. 
  9. ^ "PSE&G parent company to take over Long Island Power Authority". The Star-Ledger. Retrieved May 26, 2013.