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PSEG Will Replace LIPA in 2014 Following Superstorm Sandy Response

Jul 31, 2013

New York Gov. Andrew Cuomo has signed a bill that effectively ends the Long Island Power Authority (LIPA) at the end of this year.

LIPA came under heavy scrutiny during the aftermath of Hurricane Sandy last year. After the so-called “superstorm” ravaged Long Island and much of New York City, tens of thousands of residents and businesses served by LIPA were without electricity for several weeks.

Based on our previous reports, LIPA was facing legal action following the storm, including a Notice of Claim filed in part by the law firm of Parker Waichman LLP in November 2012. That notice alleged that LIPA was negligent in preparing for and reacting to Hurricane Sandy when it eventually rolled ashore on Long Island, New York, and New Jersey.

Many businesses served with electricity by LIPA went weeks without power and some were on the brink of closing for good because the power authority had failed to properly plan for the storm.

According to Fox News, Cuomo said that beginning Jan. 1, 2014, LIPA will cease to exist and Long Islanders will be served by PSEG, which will take charge of the daily operations once overseen by LIPA.

The governor told reporters that “the legislation that was signed into law today ends the LIPA as we know it, and creates a new utility system that puts Long Island ratepayers first. LIPA has offered lackluster service for too long, and after its failure to perform during Superstorm Sandy, it was clear we needed a change.”

In addition to establishing PSEG, Cuomo said that rates for LIPA customers will be frozen through 2016. He added that while power outages will likely follow future storms, he promised that PSEG will not be as lax in response as LIPA.

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