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Long Island Power Authority Paves The Way To Renew Contract With PSEG Despite Isaias Failures

Charlie Neibergall

The Long Island Power Authority has reached a tentative settlement with New Jersey-based power service provider PSEG. It would keep PSEG services until at least 2025.

Hundreds of customers wanted LIPA to end its contract with PSEG after more than 500,000 of them lost power for days following Tropical Storm Isaias.

The agreement would settle LIPA’s $70 million lawsuit against PSEG over failures in response to that storm. The new contract gives LIPA $30 million dollars.

The agreement has automatic compensation reductions if PSEG fails to meet storm preparations and power restoration “in a timely manner.”

Once the contract is drafted, it needs approval by the state and the LIPA board of trustees.

Clare is a former news fellow with WSHU Public Radio.