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 work towards the continual goals of:
Improving customer service;
Enhancing emergency response and preparation;
Reducing the cost of LIPA’s debt; and
Ensuring safe and adequate service at rates consistent with sound fiscal operating practices.
The new legislation called for the reorganization of LIPA and places the day-to-day operations under the responsibility of PSEG LI. LIPA’s primary focus is on financing matters and overseeing the contract with PSEG-LI. Among the responsibilities of the nine member LIPA Board of Trustees is responsibility for decisions on electric rates based on recommendations by the DPS resulting from a rate proceeding. The Board also has final approval on the annual budget and capital expenditures.