LIPA President & CEO Kevin S. Law Creates New Advisory Panel to Plan for the Authority’s Future

Uniondale, NY – An Advisory Panel created by Long Island Power Authority (LIPA) President and CEO Kevin S. Law consisting of elected officials, energy experts and business and financial leaders from Long Island has been created to map out the future of the Authority and to determine the best model for delivering energy to its 1.1 million customers.

Law formed the Advisory Panel to examine LIPA’s financial, and legal structure and the Authority’s business model. LIPA is operating in its tenth year since it was created by the state for the express purpose of taking over the Long Island Lighting Company (LILCO) and shutting down the Shoreham nuclear power plant.

“This Advisory Panel is an important component of LIPA’s future,” said Law. “It’s only been 10 years since LIPA took over LILCO and we need to examine if the current public/private business model LIPA now has with National Grid is the best model for delivering electricity for our customers.”

LIPA owns the region’s transmission and distribution system and is responsible for all of the management, financial, legal and energy planning for that system, which is operated by the private firm National Grid under contract to LIPA. National Grid owns all of the power plants formerly owned by LILCO, and LIPA purchases the power from these plants and pays for their fuel, operation and maintenance.

More than 95% of LIPA’s $4 billion budget is made up of fixed costs primarily driven by debt service and taxes and more than $2 billion spent annually on fuel and purchased power.

“LIPA’s maturation has been a long and frequently bumpy ride. Today, facing ever-increasing rate pressures and still smothered in nearly $7 billion in debt, we stand at a crossroad,” added Law. “It is my hope that forming this committee will be the first step in the process of determining what the future of LIPA should be.”

“I’m pleased to be a part of this effort to move LIPA into the future,” said Congressman Steve Israel. “With rates and bills projected to rise, it’s time for us to turn to alternative energy options. As part of the Advisory Panel, I plan to advocate for specific steps we can take to make energy cleaner, greener, and cheaper for all of us on Long Island.”

"Given the current economic conditions and the public's concern with LIPA's rising rates, the time has come to find more efficient and cost-effective ways to serve the over 1.1 million residents and businesses that depend on LIPA for energy. I look forward to serving on the Advisory Panel to help reduce utility rates on Long Island," said Senator Charles J. Fuschillo, Jr.

“I am glad to serve on this Advisory Panel to represent our community’s voice in the development of LIPA’s future energy policies and practices,” said Assemblyman Marc Alessi. “I look forward to working with Kevin Law, who I believe is bringing a positive change to the Authority. As always I will fight to ensure that ratepayers are getting a fair deal and that their energy needs are being met and advanced into the 21st Century. I hope that this Advisory Panel will do everything it can to mitigate future costs to LIPA customers.”

"The long-term financial stability of LIPA, and its ability to bring energy to Long Islanders at affordable prices, is central to the economic future of our region,” said Long Island Association President Matthew Crosson. “To grow, Long Island will need a consistently well run electric utility whose rates are competitive with those paid by businesses in similar areas of the country. That puts LIPA's future at the top of the economic development agenda for Long Island."

“We see this Advisory Panel as a positive step to have a voice and give valuable input by representing our 1,000 HIA member companies,” said Hauppauge Industrial Association President Terri Alessi-Miceli.

The Advisory Panel’s first meeting will be held January 15th of next year at LIPA headquarters in Uniondale. A media briefing will follow the initial meeting.

“The world is upside down right now and we are all witnessing unprecedented economic turmoil. LIPA is not immune to these problems and so we must be willing to look into doing things differently. I will be supportive of whatever makes the most sense for our ratepayers,” Law added.

Members of the Advisory Committee:

Kevin S. Law, President and CEO, Long Island Power Authority
United States Congressman Steve Israel
Paul DeCotis (Ex-Officio), NYS Deputy Secretary for Energy
New York State Senator Charles J. Fuschillo, Jr.
New York State Senator- Elect Brian X. Foley
New York State Assemblyman Marc S. Alessi
New York State Assemblywoman Audrey Pheffer
New York State Assemblywoman Patricia Eddington
New York State Assemblyman Michael J. Fitzpatrick
Matthew T. Crosson, President, Long Island Association
Bradley E. Rock, Chairman, President & Chief Executive Officer, Bank of Smithtown
Gordian Raacke, Executive Director, Renewable Energy Long Island
Mike Borsuk, CPA, Retired Managing Partner of the Long Island office of PricewaterhouseCoopers
Charles M. Strain, P.C., Managing Partner of Farrell Fritz
Terri Alessi-Miceli, President, Hauppauge Industrial Association
John Kominicki, Publisher, Long Island Business News
Tom Sanzillo, Former 1st Deputy Comptroller, Office of the New York State Comptroller
John Durso, President, Long Island Federation of Labor
Vincent Polimeni, Founder & CEO, Polimeni International, LLC, Former LIPA Trustee
Jonathan Gaska, District Manager, Queens Community Board 14

LIPA, a non-profit municipal electric provider, owns the retail electric Transmission and Distribution System on Long Island and provides electric service to more than 1.1 million customers in Nassau and Suffolk counties and the Rockaway Peninsula in Queens. LIPA is the 2nd largest municipal electric utility in the nation in terms of electric revenues, 3rd largest in terms of customers served and the 7th largest in terms of electricity delivered. In 2008, LIPA outperformed all other overhead electric utilities in New York State for frequency of service interruptions, and ranked second for duration of service interruptions. LIPA does not provide natural gas service or own any on-island generating assets. More information about LIPA can be found online at: http://www.lipower.org.

Media Contact Information
Vanessa Baird-Streeter
Phone - (516) 719-9230
Cell - (516) 640-0168
Media Pager - (516) 229-7248
media.relations@lipower.org

Multimedia Gallery

Stay Connected