New York State Assemblyman Fred W. Thiele, Jr. (I, D, WF-Sag Harbor) today reiterated his call for greater oversight over PSEG-LI after the utility claimed that its service agreement with LIPA supersedes the authority of the Department of Public Service-LI (DPS-LI) to even make recommendations about proposed rate increases.

Thiele stated, “In 2013, I voted against the LIPA Reform Act because it did not include the level of oversight necessary to protect the public. Time and again, the actions of PSEG-LI have demonstrated that the Act has no real teeth to protect ratepayers. Now PSEG is claiming that the even limited review that DPS-LI was given by the statute doesn’t exist. They are claiming that the controlling factor is the LIPA/PSEG-LI agreement and that the State can’t even make a recommendation to LIPA to lower the proposed rate increase. If this position is accepted, Long Islanders will be totally helpless to control electric costs.”

PSEG is seeking $387.1 million in new revenue through rate hikes from 2016 to 2018, but a recent draft review by a DPS advisory committee recommended it be lowered to $324.6 million. A final DPS ruling is expected by month's end. PSEG made repeated references to the language in the LIPA Reform Act and its contract with LIPA to rebut the DPS' efforts to trim budgets and sales forecasts. PSEG also questioned the State's right to question those expenses under the law. PSEG took particular exception to the advisory committee's draft recommendation that sided with a previous DPS finding that PSEG had over budgeted for tree-trimming and had overestimated future electric sales.

Brookhaven Town in its filing continued to push for the State Comptroller to be "invited" into the process to conduct a separate review of the rate case, arguing that a $220 million error by DPS in its initial analysis revealed faults in the process.

Thiele stated, “I agree with the Town of Brookhaven. The State Comptroller should have an oversight role in the operation of a State Public Authority such as LIPA. The major error by DPS-LI in its review of the rate case has destroyed public faith in the quality of their oversight. The State Comptroller should have a role. The entire process should be put on hold until the State Comptroller can review this case. My fear is that between the PSEG-LI claim that DPS-LI cannot even make recommendations about rates and the demonstrated ineptitude of DPS-LI which previously made a $220 million error, Long Island ratepayer will be left defenseless.

Thiele has sponsored legislation that would (1) elect the LIPA Board of Trustees, (2) restore the oversight role of the State Comptroller and State Attorney General, and (3) provide real regulatory authority to the State Public Service Commission over LIPA rates.