Long Island Power Authority approves PSEG contract with stiffer penalties for poor performance
The Long Island Power Authority has approved a new, $80 million service contract with PSEG Long Island to manage the regional electric grid.
This comes after the utility company was almost replaced following its poor performance restoring customers impacted by Tropical Storm Isaias last summer. About 400,000 customers were left in the dark for a week.
The reformed contract requires PSEG Long Island to adopt almost 100 changes recommended by the LIPA board of trustees. It also includes steeper penalties for poor performance, including withholding half of its payments and the contract can be terminated at any time.
Elected officials and community groups have called for LIPA to end its relationship with PSEG Long Island. They want the agency to become a fully public entity and manage the distribution of power itself.