Preparing for Long Island's Energy Future

As we continue to prepare for our energy future on Long Island, we are excited to provide additional details about LIPA’s plans to restructure the way LIPA operates its electric utility business.

• Background Information
• Selection of PSEG
• LIPA & PSEG Partnership
• Improved Business Model
• Frequently Asked Questions

Background Information

In October 2011, LIPA decided to adopt an improved business model designed to enhance the quality of customer service, provide long-term workforce stability and allow LIPA to more effectively manage costs with greater accountability and transparency. This action was the culmination of a year-long, independent and comprehensive review of LIPA’s strategic organizational options.

Selection of Public Service Enterprise Group (PSEG)

Following up on that decision, on December 15, 2011, the LIPA Board of Trustees selected Public Service Enterprise Group (PSEG) to implement LIPA’s improved business model and to run the day-to-day operation of LIPA’s electric utility business beginning on January 1, 2014. PSEG brings over 100 years of experience in electric energy generation, transmission and distribution with a proven record of superior customer service. LIPA is confident that this decision, coupled with the adoption of an improved business model (October 2011), will provide LIPA customers with the best possible value, which is our primary objective.

Quick Links

• Press Release & Conference: December 15, 2011: LIPA Board Selects PSEG to Operate the Long Island Electric Grid
• Webcast: December 15, 2011 Board of Trustees Meeting
• Request for Proposal: Utility Services Management to the Long Island Power Authority

LIPA & PSEG Partnership

PSEG will be a new partner operating the transmission and distribution system with LIPA under a new, improved business model. The creation of a joint operating committee will allow for a more collaborative process which will enhance the level of accountability, transparency and control between LIPA and PSEG.

• PSEG has formed a Long Island based company that will focus exclusively on services to LIPA. PSEG, with subcontractor Lockheed Martin’s services, will create a team with complex business transition experience to ensure a seamless transition of services in 2014.
• PSEG is one of the most highly regarded utility companies according to J.D. Power & Associates – with high rankings for reliability and customer service
• PSEG will have a wholly-owned business unit dedicated solely to LIPA and its customers and it will be a consistent presence in our community, as all of this unit’s employees will work here on Long Island.

Improved Business Model Overview

Under the new way of doing business, PSEG will be LIPA’s partner operating under a new, improved business model.

• Creating a joint operating committee will ensure a collaborative process which will improve the level of transparency, accountability and control between LIPA and PSEG. This model is expected to allow LIPA and PSEG to operate at the highest levels of efficiency, resulting in improved services to customers.
• Under this contract, LIPA will have approval rights over the annual budget and capital expenditures, which will provide LIPA with control over spending and the ability to decide how best to allocate resources.
• These capabilities will facilitate better management of customer rates going forward, which will continue to allow for rate stability for customers.

Frequently Asked Questions

To view the Frequently Asked Questions, please visit http://www.ourlipafuture.info/FAQs.html.