State lawmakers are considering an overhaul of LIPA as they wrap up their legislative session.

State Senate Co-Leader Dean Skelos, of Rockville Centre, says the bill before legislators would turn over the delivery of Long Island's electric service to New Jersey-based PSEG. LIPA would then essentially become a holding company.

Under the bill, rates would remain the same for two years. Some taxes that LIPA has to pay would be eliminated, and those savings would be passed on to ratepayers.

Legislators are still trying to determine how much oversight the state will have over the new utility. Critics have said that Gov. Andrew Cuomo's restructuring plan would allow LIPA to raise rates without outside approval.

Legislators say there are legal limits to how much oversight the state can impose. Stricter controls could violate the agreement with LIPA's current bond holders and result in legal action.

The bill is scheduled for a vote on Thursday.