Reformed Management Contract with PSEG Long Island

On December 15, 2021, the LIPA Board of Trustees approved a reformed contract with PSEG Long Island that puts customers first and provides LIPA and the New York State Department of Public Service greater oversight authority. Under the approved agreement, PSEG Long Island will forfeit $30 million to compensate customers and pay for repairs to the information technology and communications systems that failed during Tropical Storm Isaias in 2020. The reformed contract terms meet all eight of the LIPA Board’s reform criteria, as agreed with PSEG Long Island in June 2021. The contract has been signed by PSEG Long Island and LIPA and was reviewed and approved by the Office of the New York State Attorney General and the Office of the New York State Comptroller before going into effect on April 1, 2022.