LIPA Looking for Possible New Operator, Citing PSEG-LI ‘Failures’

PSEG-LI workers restore power after Isaias

The Long Island Power Authority (LIPA) will hold a second public meeting on Thursday as part of its effort to find a new operator for its power system that is overseen by PSEG Long Island.

LIPA issued a Request for Information on May 19 seeking providers interested in operating all or some of its service area after what LIPA called PSEG Long Island‘s “failures before, during and after Tropical Storm Isaias in August 2020.”

Officials at PSEG Long Island, a unit of New Jersey energy company Public Service Enterprise Group Inc were not immediately available for comment.

Isaias knocked out power to more than 4.3 million homes and businesses from North Carolina to Quebec – some for several days – including over 320,000 on Long Island.

This is not the first time a storm has gotten a company managing LIPA’s power lines into trouble.

PSEG Long Island took over the operation of LIPA’s system in 2014 from a unit of UK energy company National Grid PLC, following National Grid’s failure to restore power quickly after Hurricane Sandy.

PSEG Long Island provides service to 1.1 million customers on Long Island.

LIPA has said it is considering several different options for its power system, including selling assets to private investors, resetting the PSEG Long Island relationship, contracting with a new service provider or putting utility operations under LIPA management.

LIPA said it was still in talks with PSEG Long Island on a reformed contract.

LIPA asked companies interested in operating all or some of its system to respond by July 19.

(Editing by Richard Chang)

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