LIPA Reform Act
In July 2013, the LIPA Reform Act was signed by Governor Andrew M. Cuomo to restructure electric utility operations on Long Island. The revamping of Long Island’s electric operations will focus on:
- improving customer service
- enhancing emergency response and preparation
- reducing the cost of LIPA’s debt by refinancing up to half of the $6.7 billion debt at a lower interest rate
- increasing the opportunity to freeze base rates for 2014 and 2015
The new legislation called for the reorganization of the Long Island Power Authority (LIPA) and places the day-to-day operations under the direction of the Public Service Enterprise Group Long Island (PSEG-LI). LIPA is now a holding company with primary focus on financing matters and overseeing the contract with PSEG-LI. The nine member LIPA Board of Trustees is responsible for decisions on electric rates using information developed by the NYS Department of Public Service as part of a rate proceeding. The Board also has final approval on the annual budget and capital expenditures.