Statement of Assemblyman Fred W. Thiele, Jr. on the LIPA/PSEG-Li Contract Settlement

The agreement between LIPA and PSEG-LI reached behind closed doors this past Sunday marks still another betrayal of LIPA’s ratepayers.

During Tropical Storm Isaias this past August, LIPA’s third-party contractor, PSEG-LI, provided a communications and storm response for Long Island that can only be described as a catastrophic failure. Those failures were well-documented and publicized by LIPA. It was clear that there had not been proper oversight over the contract between LIPA and PSEG-LI. Further, PSEG-LI had misled LIPA and the people of Long Island about its state of readiness to respond to this tropical storm. PSEG-LI breached its contract with LIPA. More importantly, any trust that Long Islanders might have placed in PSEG-LI had been irrevocably broken. We are still being told by LIPA that the system still isn’t fixed.

For months, LIPA, in report after report, gave chapter and verse about the failures of PSEG-LI and how LIPA had been misled. Further, LIPA also documented that there were better options available than PSEG-LI. Most notably, a full public power company could provide better service and at a less cost.

This was the original vision of the framers of the LIPA statute. A full public power company accountable directly to the people of Long Island. After several misfires including Tropical Isaias and Superstorm Sandy, the third-party service contract model is a failure. It lacks oversight, transparency, and accountability. No other utility in the nation even has such a convoluted management structure.

Yet, LIPA after fully documenting PSEG-LI’s failures and the breach of trust, decided that continuing this failed relationship was the best option. They can give you all the promises in the world. But, do you trust them?

This marks another chapter in the failed energy policy of Long Island which began with the construction of Shoreham and continues until the present. Long Island’s ratepayers and economy has paid the price. Someday, maybe this summer or next, Long Islanders will pay the price again for this irresponsible decision.

In 2013, I was told that the LIPA Reform Act would solve all Long Island’s utility problems. I voted “no.” It was obvious that the convoluted management structure lacked transparency, oversight, and accountability and that it would ultimately fail, and it did.

Now, in 2021, it is déjà vu all over again. We are hearing the same empty platitudes for a contract that will ultimately fail and for which Long Islanders will ultimately pay the price. Insanity is doing the same thing repeatedly and expecting a different result.

I urge the LIPA Board of Trustees to reject this ill-considered plan and return to the original vision of a public power company for Long Island. LIPA’s own documents demonstrate the potential benefits of this course of action. Do what is right for Long Island and not what is expedient.