PSEG LI gets $9.5M from LIPA for reaching incentives

Posted: Updated:
WOODBURY -

PSEG Long Island is receiving $9.5 million from LIPA in incentive compensation this year – and utility customers will be footing the bill.

The utility is receiving that money even though it failed to meet a critical measure of reliability for the second consecutive year. That metric deals with the frequency that customers’ service is interrupted.

The metrics are broken into different categories: Customer satisfaction, technical and regulatory performance and financial performance.

PSEG officials told News 12 in a statement, “We're proud of our performance. PSEG Long Island has been the most improved utility in the nation according to JD Power three years in a row. We achieved 23 of 24 metrics. That's an ‘A’ grade in any book.”

Matthew Cordaro is a LIPA trustee, but spoke to News 12 Thursday on behalf of himself. He says the metrics are too easy and need to be changed.

"I'm not thoroughly satisfied that this money is deserved," he said.

While ratepayers will be footing the bill for the compensation, Cordaro said the impact on individual bills will be minimal. The compensation pool for PSEG goes up each year based on the consumer price index.

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