Cuomo: ‘End LIPA As We Know It'

ALBANY-Utility operations on Long Island would be privatized under legislation that would effectively reduce the Long Island Power Authority to a holding company. As of late Thursday afternoon, both houses of the New York State Legislature had not signed off on the measure, the result of an agreement reached Wednesday between Gov. Andrew Cuomo and legislative leaders.

The legislation would bring in New Jersey-based Public Service Enterprise Group to oversee day-to-day utility operations on the island, via an entity to be known as PSEG Long Island. It would reduce LIPA staff to the minimum necessary to ensure that the authority is able to meet its core obligations, and with a new board reduced to nine members. This would maintain the LIPA’s eligibility for FEMA and tax benefits, but would offer the benefits of PSEG Long Island’s more efficient management structure as a private company, the governor’s office said.