Daniel Eichhorn, President and Chief Operating Officer of PSEG Long Island, said his company is pleased to have reached an agreement with LIPA that will allow us to remain a service provider. The agreement also requires PSEG Long Island to separate IT platforms from New Jersey-based systems to ensure better accountability and oversight. The provisions of the new contract are intended to ensure that PSEG Long Island`s decisions to hire affiliates to provide services at customers` expense provide better quality and lower costs than competing providers. As for the adoption of the treaty, the only negative vote on the LIPA board of directors came from Nancy Goroff, a 2020 candidate, to represent New York`s first congressional district, which includes East Hampton Town. “The fundamental problem here is that this is a contract with a service provider. this has not been the case in the past,” she said. While the agreement is “a huge improvement over what we have now,” she said, “we should always move towards municipalization, and I would like to express my gratitude to Representative Thiele and Senator Gaughran for the bill they introduced to move us in that direction.” PSEG Long Island will also provide $30 million in refunds to customers for spoiled food and medicine after Tropical Storm Isaias, payments and credits for information technology and communications system modernization, and contributions to Long Island charities. The new agreement commits PSEG Long Island to separate computing platforms from New Jersey-based systems and grants LIPA new rights to independently test and validate INFORMATION TECHNOLOGY SYSTEMS because they failed during Tropical Storm Isaias. Dan Eichhorn, PSEG Long Island`s chief operating officer, said the company was “committed to finalizing this cooperation agreement,” subject to state and other reviews.
The agreement also calls for enhanced prudential protection for LIPA and DPS. The Long Island Power Authority has entered into a new agreement with its service provider PSEG Long Island for a four-year contract. It also settles a $70 million lawsuit filed by LIPA against PSEG-LI following Tropical Storm Isaias in August 2020. A public hearing on the new agreement will take place on 2 December. The LIPA Board of Directors will meet next week, on 17 September. November and should make a decision before the end of the year. The last meeting of the Board of Directors will take place on December 15. Board members said they were “cautiously optimistic” about the continuation of their relationship with PSEG-LI.
“This agreement, which is under public review, is a strong solution to the enforcement actions recommended by the department as a result of our investigation into PSEG Long Island`s response to Tropical Storm Isaias,” Carrie Meek Gallagher, director of the Long Island Department of Public Services Office, said in the statement. “PSEG Long Island will pay $30 million for installment benefits to compensate for the damage caused, and the new contract terms are transformative improvements that will significantly reduce the likelihood of this type of outage in the future. The Long Island Power Authority (LIPA) announced on June 28 that it has reached an agreement with PSEG Long Island on a series of treaty reforms that will give THE LIPA and the New York State Department of Public Service (DPS) more oversight powers and resolve ongoing litigation related to PSEG Long Island`s non-compliance with contractual standards during Tropical Storm Isaias. The MOU will be submitted to the LIPA Board of Directors for review once completed. The agreement also provides that PSEG will strengthen the local management team with new leadership positions in the areas of IT technology, cybersecurity, emergency response and business services. All of them will report to managers on Long Island, not New Jersey. “PSEG Long Island is pleased to have entered into an agreement with LIPA that will retain us as a service provider. We are committed to finalizing this collaboration agreement following a review by the State of New York,” Daniel Eichhorn, president and chief operating officer of PSEG Long Island, said in a statement. LIPA and PSEG Long Island reached an agreement Tuesday on a new four-year contract, which the agency called the strongest in its history, but a state lawmaker criticized for putting “lipstick on a pig.” The agreement between LIPA, the owner of the power grid, and PSEG Long Island, which manages it on behalf of LIPA, includes reforms to ensure better oversight of PSEG Long Island`s operations and improve performance and accountability, according to a LIPA statement.
The agreement requires positive and timely disclosure to THE LIPA and DPS of issues that occurred before and during Tropical Storm Isaias and that significantly affect PSEG Long Island`s ability to provide reliable services, emergency response, cybersecurity, financial deficiency, non-compliance with laws or circumstances that may compromise health, public safety and welfare. “We are committed to finalizing this cooperation agreement following a review by the State of New York,” Eichorn said in a written statement. Under the agreement, PSEG will pay $30 million for “payer`s benefits” to “compensate” for damage caused by PSEG failures, she said. The $30 million will cover costs previously paid by fee payers for the repair and modernization of storm computer and communication systems. Prior to final approval, LIPA trustees must sign the agreement, followed by public hearings on December 2 and at board meetings on December 17 and 15. The deal must be approved by the attorney general and state auditor, Newsday reported. “We are committed to finalizing this cooperation agreement following a review by the State of New York. We are proud of our employees, their achievements and the strategic improvements we have made since 2014, and this agreement reflects this legacy of performance,” said Daniel Eichhorn, President and Chief Operating Officer of PSEG-LI. If approved, the reformed treaty will be subject to review and approval by the Attorney General and the Comptroller of the State of New York before the terms go into effect. Nearly 400,000 customers lost power after Isaias for a week and power restoration was delayed due to poor management and performance.
The mistake opened 15 months of investigations against the public service for its failures. LIPA considered replacing its PSEG contract with another service provider or moving to a public service model. LIPA CEO Tom Falcone called the pact “the best deal LIPAs have ever had” in an interview with Newsday, which is “backed by kpis that will meet customer needs.” And LIPA acting chairman Mark Fischl said he was “cautiously optimistic” that the new treaty would force pseG to meet its obligations, adding that the loss of compensation embedded in the language should help. The Long Island Power Authority (LIPA) announced on November 9 a revised management services contract and agreement with PSEG Long Island, which, according to the LIPA, includes reforms to promote performance and accountability while providing an unprecedented level of oversight of PSEG Long Island`s operations. “The whole model of having the Long Island Power Company run by a public agency that outsources all management to a third-party private utility is a flawed model,” Rep. Fred W. Thiele Jr. said Monday. “I`m not sure I would have been satisfied with a contract because the model is defective.” But, she added, “basically, I still believe we shouldn`t sign new contracts with PSEG Long Island.” Yet Long Island state lawmakers are drafting a bill that would eventually allow the LIPA to turn to a public model and power the region`s power grid and electricity distribution.
It follows the efforts of Reimagine LIPA, a 30-member coalition that campaigned last year to end the public-private model of the regional energy industry. The announcement came 15 months after Tropical Storm Isaias caused PSEG Long Island`s recovery and communication system to fail, leaving more than 500,000 customers without power for a week and unable to reach the utility. “The LIPA Board of Directors, with most of its directors about to leave, decided to serve the former Governor. Andrew Cuomo one last time by agreeing to new terms with the PSEG, a deal that, if approved, would pursue a flawed public-private model,” the coalition said in a written statement. “It`s no surprise that some board members continue to ignore fee payers who pay exorbitant utility bills for unreliable service. We hope that council will come to their senses and reject this agreement in favor of full municipalization, and we call on all residents who are tired of lipa and PSEG to use the public comment period to demand the public authority. LIPA said the new deal met all the conditions demanded by the LIPA after an ultimatum offer negotiated by former Governor Andrew M. Cuomo with senior PSEG officials in late June. The deal ends months of sometimes bitter public negotiations following the Failure of the New Jersey-based company during Tropical Storm Isaias in August 2020.
The storm left more than 535,000 customers without power for a week as communication and technology outages hampered PSEG`s recovery. An announcement of 9. In November, the fact that the Long Island Power Authority and the New York State Department of Public Service agreed on a new management contract with PSEG Long Island was accompanied by reassuring words from LIPA officials, but also continued criticism from government officials and activists. The agreement strengthens customer protection. . Reimagine LIPA, a coalition of more than 30 organizations, said in a statement: Other reforms in the new contract include a provision that compensation for all PSEG Long Island employees is tied to the performance of Long Island`s operations. PSEG Long Island is also subject to detailed performance requirements set annually by the LIPA Board of Directors and DPS to ensure that the company adheres to industry best practices in all services to LIPA and its customers. .