Ra: LIPA Reforms A Much-Needed First Step

Governor Cuomo announces major changes to Long Island Power Authority

Assemblyman Ed Ra (R-19th District) expressed optimism for Governor Cuomo’s proposed changes to the Long Island Power Authority (LIPA). The governor’s plans include streamlining of LIPA’s bureaucracy, new customer service priorities and guidelines and a three-year rate freeze. Poor customer service and exorbitant rates have long been a hallmark of LIPA, but their ineptitude was magnified greatly in the aftermath of Superstorm Sandy. Because of this, the governor is proposing that Public Service Enterprise Group (PSEG) take over the day-to-day operations that LIPA has had in the past. PSEG is New Jersey’s largest utilities company and was praised by many for its quick organized response in the wake of Sandy. It would leave state-owned LIPA as holder of $7 billion of debt. Refinancing half of that will ease bills for rate payers. Ra applauded the governor’s announcement, but also stressed the need to ensure long-term affordability and reliable customer service for Long Island families.

“Reforming LIPA has been an issue of great discussion and concern for Long Islanders, and while I’m awaiting the full details of the plan released today, I’m cautiously optimistic going forward,” said Ra. “Over the past several months, it has become clear that fully privatizing the authority was not feasible, but the governor has managed to address many of the issues most important to our residents, namely the fact that the current cost of electricity contributes to our region’s high cost of living and the cost of doing business and the need for better, more responsive customer service.

“The three-year rate freeze and restructuring of debt is a great first step in reducing energy costs, and I hope that we can go further and actually lower energy rates long term. The changes to LIPA’s infrastructure are critically important, particularly in the face of their utter failure to provide reliable, quality customer service and communication when our residents needed it after Superstorm Sandy.

“It’s painfully clear that the status quo is not working for Long Island, and I’m hopeful that the changes proposed today are the first step toward the low-cost, reliable energy and customer service our residents deserve.”