Thiele Introduces LIPA/PSEG-LI Oversight Package

Two bill package would provide for election of LIPA trustees and would restore state comptroller and state AG oversight

New York State Assemblyman Fred W. Thiele, Jr. has introduced a two bill package designed to restore some degree of transparency and oversight to the activities of LIPA and PSEG-LI. The first bill would establish an elected LIPA Board, as was originally envisioned when LIPA was created in 1986. The second bill would restore the oversight function to the State Comptroller and State Attorney-General over LIPA activities. Thiele opposed the so called “LIPA Reform Act” in 2013 in part because it stripped oversight away from the Comptroller and AG.

Thiele stated, “We have seen very disturbing developments with the LIPA-PSEG-LI relationship in the little more than a year that it has been in effect. Rates are up, debt is up, the commitment to renewable energy is down, community outreach is down, LIPA has decreased the number of public meetings, customer satisfaction is still 95th out 95 utilities across the State, and the Department of Public Service can do nothing but make recommendations . The best I can say is that they get an incomplete on storm responsiveness because we have been fortunate not to endure a Gloria or Sandy during their tenure. Long Island’s energy decisions are still being made in Albany and now New Jersey, not Long Island.”

Under Thiele’s proposals, LIPA would continue to be a 9 member board. The Chairman would still be appointed by the Governor. However, the remaining 8 trustees would be elected by the people of Long Island from 8 districts of equal population covering the LIPA service area of Suffolk, Nassau, and part of Queens in the Rockaways. Thiele explained, “While LIPA’s role has been diminished, they are still ultimately responsible for overseeing management and power supply agreements. Most importantly, they will make the final decision on any rate increases. The Board that makes these decisions should be responsible to Long Islanders, not Albany.”

The second proposal would restore the oversight role that the State Comptroller and State Attorney-General have over every other state agency and authority with regard to contracts, fiscal, and legal issues. The LIPA Reform Act in 2013 stripped this oversight away. Instead, DPS-LI was created at a cost of $5.5 million to perform nothing but an advisory role. Thiele stated, “In a short period of time we can see what has happened with an unregulated monopoly. The State Comptroller and AG, in addition to elected Trustees can help to provide the oversight and transparency that is needed to insure that the interests of Long Islanders are served.”