Governor Andrew Cuomo has signed legislation sponsored by State Assemblyman Fred Thiele and State Senator Ken LaValle that requires PSEG-LI to make public, in connection with any rate petition, all compensation, including executive pay, and all fees to consultants and contractors, which is paid to PSEG-LI in connection with PSEG-LI's operations services contract with LIPA. The legislation also empowers the State Department of Public Service-Long Island to review and make recommendations with regard to the reasonableness of these costs. Such costs are directly paid for by LIPA ratepayers.

DPS-LI is empowered to make recommendations to LIPA about rate petitions under the LIPA Reform Act. LIPA must then decide such rate petitions. In March of 2015, when seeking a 3-year rate increase, PSEG-LI refused to make public the executive compensation for its 18 top officials, claiming that such information was 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. PSEG-LI earns around $58 million for management of the LIPA grid and another $9.2 million for hitting performance targets set by LIPA.

The new law amends the LIPA Reform Act to ensure that such information is available for public scrutiny in connection with any rate increase petition. It would also give DPS-LI the right to review the information and make recommendations to LIPA about the reasonableness of such compensation and costs.

Assemblyman Thiele stated, “PSEG-LI is merely a contractor for the Long Island Power Authority. Its main mission is to supply a most basic societal need to Long Islanders: 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 an electric rate increase, including executive pay, consulting fees, and contract costs is clear. Access to such information should not be thwarted by shrouding it with the cloak of secrecy or confidentiality. This legislation is the first step to restore transparency and accountability to the electric ratemaking process on Long Island. I thank the Governor for approving the bill.”

Ken LaValle said, “I am pleased that the Governor agrees with Assemblyman Thiele and me that with some of the highest electric rates in the country, Long Island ratepayers have a right to complete transparency. Our families deserve to know where LIPA is spending their hard-earned money.” He continued, “The Department of Public Service will now have the proper tools to adequately request and secure information that is related to the cost of supplying our power. We should not be paying inflated executive salaries and high-priced consultants without scrutiny. This law forces LIPA and PSEG-Long Island to comply with our requirements.”