With a favorable ruling by the Internal Revenue Service, PSEG cleared its last potential roadblock to taking virtually full control of the Long Island Power Authority’s electric system.
The IRS said that LIPA could maintain its tax-exempt status, and, as a result, keep its borrowing costs lower than they would be with a for-profit company. The New Jersey utility took control of our power supply on Jan. 1, with PSEG Long Island’s president saying the company plans “to make service more responsive” and invest hundreds of millions of dollars.
Under the 12-year contract with LIPA, PSEG Long Island has extensive accountability and decision-making ability in managing the transmission and distribution system that serves 1.1 million customers. LIPA, with its tax-exempt status, will fund major capital investments.
“We have made a strong commitment to bring PSEG’s reputation for excellence to Long Island, and provide customers with a level of service they expect and deserve from their electric utility,” said David M. Daly, president and COO of PSEG Long Island.
With the new utility operator comes a new logo on utility vehicles, customer bills, signage at company work locations and employee uniforms. The company’s orange sunburst also appears on identification badges worn by all employees.
