Tentative deal with LIPA could keep PSEG on Long Island till 2025

LIPA and the power service provider reached the agreement Sunday.

News 12 Staff

Jun 28, 2021, 7:24 PM

Updated 1,019 days ago

Share:

A tentative deal between LIPA and PSEG Long Island could keep the utility on Long Island until 2025.
LIPA and the power service provider reached the agreement Sunday. LIPA's CEO described the deal to News 12 as a pay for performance deal, which is seen as necessary after PSEG Long Island was criticized for its response to Tropical Storm Isaias. That storm knocked out power to more than 300,000 customers.
"I think this is a comprehensive acknowledgment that this wasn't what we hired PSEG to do. It's a comprehensive commitment that it will be better in the future and we're gonna stick to it," says LIPA CEO Thomas Falcone. "If they don't deliver, there are going to be penalties and there's nothing in this agreement that keeps the board from reconsidering their options in the future if they don't deliver."
If the new deal is approved, PSEG Long Island will be required to meet certain goals and timelines, strengthen its local management, pay $30 million in restitution for IT systems that failed, and cover the cost of spoiled food and medicine. In addition, the utility would have to donate to Long Island charities.
Critics say this is a bad deal.
"PSEG has shown time and time again they mismanaged the storm," says Lisa Tyson, of Long Island Progressive Coalition. "They are mismanaging our system. I mean you are basically giving a contract to someone who has failed."
Daniel Eichhorn, president and chief operating officer, PSEG Long Island says, "PSEG Long Island is pleased that LIPA has made the best choice for our customers in retaining us as service provider. We are proud of our employees, their achievements and the improvements we have made since 2014. PSEG Long Island looks forward to continuing to serve Long Island and the Rockaways, improving system reliability and enhancing customer service while being an engaged and responsive community partner."


More from News 12
0:24
Prosecutors: Central Islip man indicted for killing Bay Shore teen during attempted robbery

Prosecutors: Central Islip man indicted for killing Bay Shore teen during attempted robbery

2:42
Chance for showers Saturday, mostly sunny for Sunday

Chance for showers Saturday, mostly sunny for Sunday

1:57
7 motorized scooters stolen from Williston Park garage; thieves contacted victim offering to sell them back

7 motorized scooters stolen from Williston Park garage; thieves contacted victim offering to sell them back

1:51
Dozens come out to exhibit to purchase art pieces depicting scenic North Shore

Dozens come out to exhibit to purchase art pieces depicting scenic North Shore

0:26
Shirley man pleads guilty to murder, setting victim's body on fire

Shirley man pleads guilty to murder, setting victim's body on fire

0:20
Freeport photographer accused of forcibly touching teen at Lindenhurst studio

Freeport photographer accused of forcibly touching teen at Lindenhurst studio

0:41
Judge dismisses Blakeman's lawsuit against AG's office connected to transgender athlete ban

Judge dismisses Blakeman's lawsuit against AG's office connected to transgender athlete ban

0:22
Officials: Fire breaks out at home near Wyandanch High School

Officials: Fire breaks out at home near Wyandanch High School

0:28
Police: Yonkers man charged for Old Westbury gas station robbery from nearly a year ago

Police: Yonkers man charged for Old Westbury gas station robbery from nearly a year ago

0:32
Beloved Franklin Square principal returns to Polk Street School following unexplained leave of absence

Beloved Franklin Square principal returns to Polk Street School following unexplained leave of absence

0:44
AG James announces over $1M settlement with Northwell Health for misleading COVID-19 patients

AG James announces over $1M settlement with Northwell Health for misleading COVID-19 patients

1:19
Authorities: Woman injured after shots fired into home in Mastic Beach

Authorities: Woman injured after shots fired into home in Mastic Beach

1:55
LI school districts wait for answers as state budget delays continue

LI school districts wait for answers as state budget delays continue

0:47
Long Island Restaurant Week: Lake View Grill, Legends, Dimon Estate

Long Island Restaurant Week: Lake View Grill, Legends, Dimon Estate

1:12
The East End: Take a tour of the The Shoppes at East Wind

The East End: Take a tour of the The Shoppes at East Wind

1:37
The Real Deal: How to save the next time you dine out

The Real Deal: How to save the next time you dine out

Guide: Long Island Public Golf Courses

Guide: Long Island Public Golf Courses

2:29
Multiple independent audits document a pattern of fiscal distress at Amityville schools

Multiple independent audits document a pattern of fiscal distress at Amityville schools

1:24
Police: Mother arrested for leaving 2 children unattended in a car near the Green Acres Mall

Police: Mother arrested for leaving 2 children unattended in a car near the Green Acres Mall

0:27
Police: Babylon man pointed gun at teen and his father

Police: Babylon man pointed gun at teen and his father