Long Island Power Authority
| Company type | Public-benefit corporation |
|---|---|
| Industry | Electric utility |
| Predecessor | Long Island Lighting Company (LILCO) |
| Founded | 1985 |
| Headquarters | Long Island , United States |
Area served | Long Island, New York; portion of Queens, New York City |
Key people | John Rhodes (Acting CEO, since March 2024), Tracey Edwards (Board Chairwoman, since November 2023) |
| Products | Electric transmission and distribution services |
| Owner | State of New York |
Number of employees | 54 (2017) |
Long Island Power Authority (LIPA, pronounced "lie-pah") is a municipal entity of the State of New York that owns the electric transmission and distribution infrastructure serving the entirety of Long Island as well as a portion of Queens in New York City, including the Rockaways.
History
Created by the Long Island Power Act of 1985, LIPA was formed to take over the electric and natural gas assets previously held by the Long Island Lighting Company (LILCO). It officially assumed control of LILCO's transmission network in May 1998.
Before 2014, LIPA directly managed its electric and natural gas facilities, with KeySpan contracted to operate these assets until 2007. Following KeySpan’s merger with National Grid USA in 2007, National Grid took over operations of LIPA’s electric infrastructure until the end of 2013.
Starting January 1, 2014, LIPA entered into a 12-year contract with New Jersey-based Public Service Enterprise Group (PSEG) to oversee its electric system operations. The transition from National Grid to PSEG occurred at the close of 2013. Meanwhile, KeySpan remains responsible for managing Long Island’s natural gas infrastructure.
Services
LIPA’s electric network on Long Island provides service to more than 1.2 million customers throughout Nassau, Suffolk, and the Rockaway Peninsula in Queens. While LIPA does not directly own or operate power generation plants or retail natural gas businesses, it contracts with various generation facilities to fulfill electricity demand. According to the 2018 NYISO Gold Book, LIPA is identified as "Owner, Operator and/or Billing Organization" for 27 generation sites on Long Island with a combined nameplate capacity near 5,048 megawatts (MW).
Organization
The governance of LIPA is entrusted to a board comprising nine trustees. The executive team is headed by Acting CEO John Rhodes, who assumed his role in March 2024. Tracey Edwards holds the position of board chairwoman, having been appointed by Governor Kathy Hochul in November 2023.
In its 2017 financial report, LIPA disclosed operating expenses totaling $3.214 billion alongside outstanding debt amounting to $3.574 billion and employed a workforce of 54 individuals. Although the New York State Public Service Commission (NYSPSC) reviews and advises on LIPA’s retail electricity rates and expenditures under Public Service Law Section 3-b, it lacks authority to set rates or approve budgets but retains rights to audit LIPA’s facilities, financial records, and operations. To support these oversight responsibilities, the NYSPSC maintains a field office located on Long Island.
Notable leadership changes include Kevin Law succeeding Richard Kessel as chairman in early 2007 before taking on the CEO role later that year; Law resigned in September 2010 to lead the Long Island Association.
Facilities
LIPA owns electric transmission and distribution lines operating at various voltage levels:
- Transmission lines at 345-kilovolts (kV) and 138-kV
- Distribution lines at voltages of 69-kV, 33-kV, 23-kV, 13.2-kV, and 4.16-kV
Power vendors
While LIPA does not possess or manage generation plants or retail natural gas operations on Long Island, it contracts with multiple generators to supply electricity requirements. The table below outlines generating facilities within the NYISO Region K (Long Island), detailing net energy produced in 2020:
| Operator | Facility | Location | Nameplate rating (MW) | Net energy in 2020 (GWh) | |
|---|---|---|---|---|---|
| National Grid | Northport Power Station | Fort Salonga | 3945.4 | 5099.1 | |
| E. F. Barrett Power Station | Barnum Island | ||||
| Port Jefferson Power Station | Port Jefferson | ||||
| Other facilities (gas turbine, jet engine, internal combustion) | Glenwood Landing, Holtsville, Shoreham, East Hampton North, Southold, West Babylon, Southampton | ||||
| Caithness Energy | Caithness Long Island Energy Center | Yaphank | 375.0 | 2171.3 | |
| Reworld | Reworld Hempstead | Uniondale | 136.1 | 958.3 | |
| Three other waste-to-energy plants | East Northport, Wyandanch, Ronkonkoma | ||||
| New York Power Authority | Richard M. Flynn Power Plant | Holtsville | 223.8 | 645.9 | |
| Gas turbine unit | Brentwood | ||||
| Calpine Energy Services | Bethpage Energy Center | Bethpage | 286.6 | 539.8 | |
| Gas turbine unit | (Stony Brook) | ||||
| "Electric Power Development Company (J-Power)" | "Five gas turbine and one combined cycle units" | (Brentwood, Shoreham, Babylon, Freeport) | "342" | "306.7" | |
| "Engie Energy International (Nassau Energy Corporation)" | "Combined cycle unit" | (Uniondale) | "55.0" | "160.1" | |
| "MPH Rockaway Peakers" | "Two jet engine units" | (Far Rockaway, Jamaica Bay) | "121" | "108.6" | |
| "Hawkeye Energy" | "Jet engine unit" | (Greenport) | "54.0" | "51.8" | |
| "BP Solar" | "Long Island Solar Farm" | (Brookhaven National Laboratory, Upton) | "31.5" | "48.5" | |
| "Village of Freeport" | "Two gas turbine units" | (Freeport) | "76.8" | "10.2" | |
| "Village of Rockville Centre" | "Charles P. Keller facility (internal combustion units)" | (Rockville Centre) | "31.4" | "0.9" |
In comparison to New York State’s peak demand of 29,699 MW in 2017, Long Island's highest recorded electric load was approximately 4,972 MW that same year.
The majority of Long Island’s largest power plants are operated by National Grid plc, which inherited three principal steam turbine stations originally constructed by the former Long Island Lighting Company (LILCO). Under a state agreement in 1998, LILCO’s generation assets were transferred to KeySpan Energy while LIPA assumed responsibility for transmission and distribution; National Grid acquired KeySpan in 2007.
Additional key generating facilities include natural gas combined cycle plants and waste-to-energy installations developed between the late 1980s and early 2000s. The South Fork Wind Farm is currently being built alongside planned projects such as Empire Wind and Sunrise Wind, all intended to connect with Long Island’s electrical grid.
As of 2021 data, roughly 40% of LIPA’s electricity supply is delivered through submarine cables including the Cross Sound Cable, Neptune Cable, Y-49 Cable, Y-50 Cable, and Northport–Norwalk Harbor Cable. Furthermore, LIPA links with Consolidated Edison’s transmission system in New York City via the 901 L&M and 903 cables.
Utility Debt Securitization Authority
The Utility Debt Securitization Authority operates as a public-benefit corporation under New York State jurisdiction, overseen by a board appointed by the governor. It holds responsibility for LIPA’s financial disclosures. In 2017, the authority recorded $122.2 million in operating costs, maintained an outstanding debt totaling $4.262 billion, and employed a workforce of three individuals.
Hurricane Sandy
On December 15, 2011, LIPA chose Public Service Enterprise Group (PSEG), New Jersey’s largest electric utility, to take over management and operation of the electric grid starting in January 2014, succeeding National Grid.
Both LIPA and National Grid encountered considerable backlash concerning their handling of the Hurricane Sandy aftermath during 2012–2013. This criticism resulted in several high-profile departures at LIPA: COO Michael Hervey resigned on November 13, 2012; VP of customer service Bruce Germano stepped down; board member X. Cristofer Damianos left on November 27; and Chairman Howard Steinberg resigned on November 30.
In January 2013, Governor Cuomo advocated for transferring LIPA’s operational control due to the agency’s sluggish recovery efforts post-Sandy. Despite appointing five out of nine trustees, Cuomo pointed to wider performance issues beyond recovery delays. By May of that year, he announced that PSEG would assume management of LIPA’s electric grid through a contractual agreement. The state legislature ratified this arrangement on July 29, 2013. Subsequently, on January 1, 2014, PSEG rebranded the system as "PSEG Long Island," effectively phasing out the LIPA name from public usage.
2013 LIPA Reform Act
The 2013 LIPA Reform Act has drawn criticism from the New York State Comptroller for contributing to higher costs and diminished transparency in LIPA’s retail electricity services. Since its implementation, LIPA’s debt levels have increased, and PSEG-LI has sought confidentiality for most documents related to rate case plans despite the expanded oversight granted to the New York State Public Service Commission. Furthermore, maintaining the Public Service Commission’s Long Island office imposes an annual cost of $8 million on ratepayers. In 2016, legislation was proposed to enhance the Commission’s authority over rate setting and to remove limitations that prevent LIPA from directly purchasing low-cost hydroelectric power from the New York Power Authority.
2025 contract
On May 22, 2025, LIPA extended its management contract with PSEG Long Island—valued at $80 million annually—thereby canceling the ongoing request for proposals (RFP) process. A senior committee within LIPA had unanimously recommended awarding the contract to Quanta after a yearlong evaluation, citing Quanta’s proposal as delivering the “best value to LIPA customers.” Nevertheless, the board rejected this recommendation with a 6–1 vote, which triggered a vote of no confidence in senior leadership at LIPA.
Executives from Quanta expressed that they were initially promised an impartial review without favoritism toward PSEG, which had managed the grid for a decade. The board’s decision was perceived as reinforcing ongoing organizational instability and perpetuating long-standing uncertainty within LIPA.
A detailed 150-page report from the selection committee—allegedly rating Quanta higher than PSEG and concluding that Quanta’s contract would be "materially better for customers"—has yet to be made publicly available.
See also
- Indian Point Energy Center
- Nassau Interim Finance Authority
- Nassau Health Care Corporation
- New York energy law
- New York Power Authority
- New York State Energy Research and Development Authority
- Northport Power Station