LIPA's 2025 Budget
While LIPA owns the electrical transmission and distribution system serving our community, we contract for most of the management services and power supply used to operate the electric grid. Since 2014, LIPA has contracted with PSEG Long Island to provide service to customers under their brand name.
As the owner of the electric grid, our team is responsible for developing a budget each year that prioritizes resources and focuses on the utility investments and activities that matter most to our customers. It lays the foundation for our financial planning and is vital in achieving our mission to provide clean, reliable, and affordable energy to Long Island and the Rockaways.
LIPA’s annual budget starts with our priorities, which flow from the strategic initiatives and policy goals set by our Board of Trustees and from our duty as a public authority to deliver the highest value to our customers.
For 2025, LIPA has a capital budget of $1 billion. This funds long-life infrastructure investments such as transmission lines, substations, poles, wires, and storm hardening, as well as information technology, fleet, and other assets. LIPA’s operating budget of $4.4 billion dollars funds delivery and power supply costs, energy efficiency and distributed energy programs, taxes, and debt service.
Budget Highlights: Clean, Reliable, Affordable
Clean: We are working to achieve New York State’s clean energy goals including a carbon-free electric grid. Many initiatives are underway in solar, storage, energy efficiency, electric vehicles, and building decarbonization. LIPA has an estimated $230 million plan to build the infrastructure for nearly 15,000 chargers across Long Island and the Rockaways to support the growing need for electric vehicles in the region.
Reliable: Above all, customers prioritize and deserve reliable and resilient electric service. Since 2010, we’ve invested $9.4 billion in infrastructure to improve the electric grid’s reliability and resiliency. Our performance is within the top 10 percent of peer electric utilities, equivalent to fewer than one power outage per year per customer.
As a state authority, LIPA is eligible for federal grants for storm recovery and programs that fund certain long-term mitigation projects to reduce the impact of future disasters.
LIPA has received over $2.4 billion from FEMA for storm recovery costs and to harden our electric grid. To translate this, it means we’ve installed over 30,000 stronger utility poles, 1,500 smart switches for self-healing, and strengthened over 1,400 miles of main-line distribution circuits, among other things.
Affordable: We aim to provide electric service at the lowest possible cost, with rates comparable to or below our neighboring utilities. As the price of goods and services throughout the country has increased, so have utility bills. Despite these challenges, electric bill increases remain below the rate of inflation.
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