By 1986, Long Island electric customers demanded changes. As a result, Governor Mario Cuomo signed the Long Island Power Authority Act, creating a public authority (LIPA) to control rates, improve service, and decommission the controversial Shoreham Nuclear Power Plant.

LIPA was originally created under the Long Island Power Act of 1986 to acquire the Long Island Lighting Company (LILCO)’s assets and securities after the cancellation of the Shoreham Nuclear Power Plant.