HOW TO FIX LONG ISLAND POWER AUTHORITY


Crain’s Nov. 19 editorial, “Amateur hour at LIPA,” makes clear why fundamental change is needed at the utility, whose operational structure is unlike any in the country.Because LIPA has a staggering $11 billion in debt, some of it from the closure of the Shoreham nuclear-power plant, the best viable option is for it to become a full-service municipal utility. More than 2,000 utilities in the country are organized in this manner, most with competitive electric rates and high customer satisfaction.Privatization would require all of LIPA’s tax-exempt debt to be converted to taxable debt. This alone would raise Long Island’s very high rates by 20% or so. In addition, a private operator would need to make a profit, putting further pressure on rates.By reorganizing as a full-service municipal utility, LIPA would be operated by professional utility management. The utility functions would then be carried out by LIPA workers and not by major outside contractors, as they are today. Clear accountability and control would be established, while improving efficiency and improving communications.—Matthew C. Cordaro The writer is chairman of the Suffolk County Legislature LIPA Oversight Committee and a former CEO of public and private utility companies 

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About lipaoversight

LIPA Oversight Committee was created to analyze the rates and practices to determine if it is working in the best interests of the Suffolk County ratepayers
This entry was posted in lipa, long island power authority, municipal power, municipalization, privatization. Bookmark the permalink.

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