We are surprised to see that the state comptroller has approved LIPA’s deal with PSEG to authorize the utility to provide power to Long Island for another five years. Questions remain as to whether the process of extending the contract with the utility was legitimate.
We already know that a LIPA advisory committee voted to suggest that the board ditch PSEG in favor of a different provider, but this recommendation by those who did the detailed analysis was thrown to the curb by the LIPA board, many of whom were politically connected.
Newsday published a fine exposé on the connections between LIPA board members, PSEG, and the Democratic Party. PSEG has contributed large sums of money to Democrats over the years, and LIPA’s positions are often known to be reserved for Democratic insiders and friends of whomever the governor is at the time.
It’s also been reported that PSEG operatives were lobbying the LIPA voting members to keep them on board and ignore the suggestion by the panel to cut ties with PSEG.
Independent investigations are now looking into whether there were any unethical actions involved in this process.
Some have suggested a short one-year extension of the current PSEG contract until these issues are resolved. But we think it’s unfathomable that a five-year contract would be cemented while these clouds exist over this smelly process.
Lawsuits are still ongoing and it is possible that the deal can still be stopped in its tracks, but the comptroller’s approval of the five-year plan makes that more unlikely. That’s too bad.