WOODBURY - A new plan could replace LIPA with a New Jersey-based power company.
PSE&G will take over LIPA's electrical transmission and distribution system from National Grid in 2014. But now there's another proposal to have PSE&G take over most of the day-to-day operations in order to lower electric rates.
LIPA trustee Matthew Cordaro worries that having a private company like PSE&G take over a municipal power authority would be a difficult transition, especially with LIPA's $9 billion debt from the now-closed Shoreham nuclear power plant. Suffolk County Energy Committee chairman Wayne Horsley says that debt is funded with low-interest, municipal-backed loans. Horsley questions how the debt would be restructured by a private company.
Gov. Andrew Cuomo has previously discussed privatizing LIPA, but appears to be backing away from giving PSE&G total control.
Cuomo's press office confirms it is looking at the proposal but says it is exploring all options.