 |
|
| Type | Government-owned corporation |
|---|---|
| Industry | Energy industry |
| Founded | 1985 |
| Founder(s) | New York State: Long Island Power Act of 1985 |
| Headquarters | Uniondale, New York, United States |
| Area served | Nassau and Suffolk on Long Island, New York; Queens, New York City |
| Key people | Michael Hervey , COO Howard E. Steinberg , Chairman |
| Services | Electricity |
| Revenue | $3,664,976,000 (2006) |
| Operating income | $364,231,000 (2006) |
| Net income | $118,170,000 (2006) |
| Owner(s) | New York State |
| Website | www.lipower.org |
The Long Island Power Authority or LIPA [ "lie-pah" ], a municipal subdivision[1] of the State of New York, was created under the Long Island Power Act of 1985 to acquire the Long Island Lighting Company (LILCO)'s assets and securities after the cancellation of the Shoreham Nuclear Power Plant. A second Long Island Power Authority (LIPA), a wholly owned subsidiary of the first, acquired LILCO's transmission and distribution system in May 1998.
LIPA, a non-profit municipal electric utility, owns the retail electric system on Long Island and provides electric service to over 1.1 million customers in Nassau and Suffolk counties, and the Rockaway Peninsula in Queens. LIPA does not own any electric generation assets on Long Island, and it does not provide natural gas service.
National Grid USA, previously Keyspan Energy, maintains LIPAs transmission and distribution system under a management services agreement that expires on December 31, 2013.
LIPA's transmission voltages are 345,000, 138,000 and 69,000 volts, subtransmission voltages are 33,000 and 23,000 volts, and distribution voltages are 13,200 and 4,000 volts.
On January 24, 2007, then-Governor Eliot Spitzer announced that Kevin Law would replace Richard Kessel as Chairman of LIPA until the fall when a new Chairman would be named and Law would become Chief Executive Officer of LIPA.[2] On October 8, 2007, Law took over as President and CEO.
Kevin Law stepped down on September 1, 2010 in order to become the new President of the Long Island Association. Chief Operating Officer Michael Hervey assumed the responsibilities until a new CEO and President is selected by the LIPA Board of Trustees.
LIPA and National Grid caught much media criticism in their response to Hurricane Sandy.[3] A similar company over the border into New Jersey was much more prepared and restored power in a much more efficient manner.[citation needed]
On November 13, 2012, Michael Hervey, COO of LIPA, resigned after criticism for slow Hurricane Sandy response.[4]
On November 27, 2012, Bruce Germano, the Vice President of Customer Service, announced he is resigning and will leave at the end of the 2012. Also, X. Cristofer Damianos, who is on the Board of Trustees is resigning effective immediately.[5]
On November 30, 2012, LIPA chairman Howard Steinberg resigned from the LIPA board effective immediately.[6]
Privatization[edit]
On December 15, 2011, LIPA selected PSEG of New Jersey, the largest electric utility of that state, to take over management and operation of the electric grid from National Grid, starting in January 2014.[7] At first, this agreement was similar to the current agreement with National Grid, only giving PSEG the responsibility of operating and maintaining the electric grid.
On January 9, 2013, New York governor Andrew Cuomo called for the privatization of LIPA in his State of the State speech. He cited their inability to quickly recover from Hurricane Sandy among other incidents. [8] In May, he announced a plan to drastically increase PSEG's responsibility in the operation of LIPA, giving it near complete control of the operation, including all day-to-day operations, essentially privatizing LIPA.[9] The Long Island Power Authority would simply exist as the owner of the system and holder of its debt. The plan is supported by local residents and elected officials, and must pass the state legislature.
See also[edit]
References[edit]
- ^ Navigant Consulting, Inc. "Long Island Power Authority Biennial Report", August 31, 2010.
- ^ Rather, John. "New Governor, New Energy Czar", The New York Times, January 28, 2007. Accessed September 24, 2008.
- ^ http://www.foxnews.com/us/2012/11/10/frustrated-long-island-residents-enter-day-12-no-power/
- ^ "Michael Hervey, COO of LIPA, Resigns After Criticism For Slow Hurricane Sandy Response".
- ^ "Top LIPA exec, trustee announce resignations". Newsday. Retrieved 27 November 2012.
- ^ "LIPA chairman Howard Steinberg resigns". Newsday. Retrieved 30 November 2012.
- ^ LIPA Press Release. "LIPA Board Selects PSEG to Operate the Long Island Electric Grid". LIPA, December 15, 2011.
- ^ "Governor's State of the State executive summary". Legislative Gazette. Retrieved January 9, 2013.
- ^ "PSE&G parent company to take over Long Island Power Authority". The Star-Ledger. Retrieved May 26, 2013.
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