If necessary, scroll down to accept. Electronic access to the documents located on this website has been authorized by the Long Island Power Authority. The inclusion of the documents located on this website is for information purposes only and is being made available to you as a matter of convenience. Although the information contained in the documents has been formatted in a manner which should replicate the printed documents, physical appearance may differ for various reasons, including electronic communication difficulties or particular user equipment.
The user of the documents assumes the risk of any discrepancies between the printed documents and the electronic version of this document. The documents located on this website do not constitute an offer to sell or the solicitation of an offer to buy any securities. W ith five years to go before its state-brokered contract with PSEG expires, the Long Island Power Authority again has a monumental task ahead: It must decide how best — or whether — to go forward with an electric utility plagued by new claims of mismanagement.
The move follows disclosures in a LIPA report this month that PSEG knew in advance of problems with a computer system that crashed as the worst of Tropical Storm Isaias hit, leaving , customers without power or answers about when it would be restored, some for more than a week.
The utility and the state have commissioned studies as recently as to determine the next best path for an electric system plagued by soaring debt, eye-popping bills, antiquated infrastructure and periodic charges of mismanagement by big-name contractors. Falcone was first to broach the idea that LIPA could chop up the current contract into several smaller ones and hire the best companies in the field to do the work. He noted that was the case for the information technology systems when the contract began, with a big portion of the back-office computer systems handled by Lockheed Martin.
PSEG, he noted, soon subsumed that work. Falcone suggested PSEG would not win the bid for computer system services. LIPA as a public authority has directed outside management of its power-line assets starting in Before that, the Long Island Lighting Co. One of the main reasons that idea failed when LIPA last considered it at Cuomo's urging: LIPA would lose eligibility for potentially billions of dollars in Federal Emergency Management Agency funds that the government pays to utilities before and after storms.
Some say it's too soon to cut the PSEG cord. If beyond that, PSEG continues to have problems, he said, he would favor hiring another private-sector company to take over the contract. PSEG Long Island spokeswoman Ashley Chauvin, in a statement, said the company believes the "current public-private partnership is the best option for Long Island customers. We will use this information to route your request to the right team within our company.
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A decision on what LIPA's future will look like is months away.
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