Thiele Introduces Legislation Requiring PSEG-LI to Disclose Executive Compensation and Fees to DPS-LI in Rate Cases
Legislation would bring transparency and oversight to executive compensation
New York State Assemblyman Fred W. Thiele, Jr. (I, D, WF-Sag Harbor) will introduce legislation this week empowering the Long Island Office of the Department of Public Service (DPS-LI) to review all compensation, including executive pay and all fees to consultants and contractors, which is paid in connection with PSEG-LI’s operations services contract with the Long Island Power Authority. DPS-LI has no decision-making authority over electric rates but is empowered to make recommendations to LIPA about rate petitions.
Last week, PSEG-LI refused to make public the executive compensation for its 18 top officials, claiming that such information is exempt from state scrutiny or public disclosure under the LIPA Reform Act passed in 2013. The management contract between LIPA and PSEG-LI is for a term of 12 years. The fee to PSEG-LI will increase from $45 million to $73 million in 2016.
In addition, PSEG Long Island has been accused of hindering scrutiny of the utility's proposed three-year rate hike by failing to respond to more than two dozen separate information requests by the Long Island Office of the State Department of Public Service. The State Department of Public Service said in the filing to administrative law judges overseeing the rate case that many of the 28 outstanding information requests exceeded the normal 10-day response time by as many as 27 days.
Thiele stated, “PSEG-LI is a contractor for a public authority (LIPA) that has as its mission the supplying of a most basic societal need: electricity. Its revenue is generated by the payment of the monthly electric bill of every Long Island resident and business. The people's right to review the documents and information related to the operation of its utility company should be obvious in a democratic society. Access to such information should not be thwarted by shrouding it with the cloak of secrecy or confidentiality. My bill would amend the LIPA Reform Act to insure that such information is available for public scrutiny. It would also give DPS-LI the right to review such information and make recommendations to LIPA about such matters.”