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Upcoming Event:
Wednesday, June 26, 2024 | 9:00 AM – 10:00 AM – Finance and Audit Committee Meeting – LIPA, 333 Earle Ovington Blvd. 4th Floor, Uniondale, NY 11553

Our Financial Role

Being a not-for-profit utility means that LIPA can provide reliable electricity to its residential and commercial customers at the lowest cost. As we are locally controlled and operate on a not-for-profit basis, we have access to lower-cost financing and federal grants not available to for-profit utilities. 

As the owner of the electrical system on Long Island and the Rockaways, LIPA has the ultimate authority and control over the transmission and distribution system assets and specific responsibilities, including determining all rates and charges, reviewing and approving utility budgets, representing interests in industry and regulatory institutions and organizations, and more.

In 2015, the LIPA Board adopted a plan to reduce LIPA’s leverage, or the amount of borrowed capital to undertake an investment or project, and its financing costs to industry levels. This plan has proven successful and has resulted in four credit rating upgrades of LIPA’s bond ratings over the past decade. Strong management of LIPA’s debt portfolio has resulted in over $680 million of savings for customers over this period. 

Federal Grants for Storm Recovery and Climate Resiliency

LIPA continues to pursue significant grant opportunities to help offset the cost of storm recovery and climate resiliency for its customers. LIPA’s status as a public power utility makes it eligible for federal grants for storm recovery not available to for-profit utilities — LIPA has received multiple grants from the Federal Emergency Management Agency for storm hardening, including for the recovery costs and hardening from Superstorm Sandy (2012) and Tropical Storm Isaias (2020). These and other pending grants are reducing the costs that would otherwise be paid by customers by $2.2 billion. 

Since 2016, LIPA has invested over $6.4 billion – over three times the pace of investment a decade ago. This investment has allowed us to achieve industry-leading reliability, including a 37% reduction in customers experiencing power outages.

Summary of FEMA Grants for Storm Recovery Costs and Hardening Programs
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