PSEG Long Island LLC, a subsidiary of Public Service Enterprise Group Incorporated (PSEG), today was selected by the Long Island Power Authority (LIPA) to manage LIPA's electric transmission and distribution system. The contract includes targets to improve customer satisfaction and provide safe and reliable service for 1.1 million LIPA customers.
PSEG Long Island was one of three finalists considered for the LIPA management services contract, which will begin Jan. 1, 2014 after a two-year transition period and run for 10 years.
"Today's decision by the LIPA Board of Trustees is welcome news," said Scott Jennings, PSEG vice president of development. "We are committed to serving LIPA in meeting the needs of its residential and business customers, as well as becoming active members of the Long Island community."
"In accepting our proposal, LIPA recognized the depth of PSEG's experience and its ability to assist LIPA in managing a safe, highly reliable electric system on behalf of its customers and in improving customer service," Jennings said. "PSEG also has a strong track record in partnering with the communities we serve. Together with our experienced partner, Lockheed Martin, we look forward to working with LIPA and the employees dedicated to LIPA's service territory to bring increased customer satisfaction and reliable service to Long Island customers."
Under the agreement, PSEG Long Island will be responsible for managing electric transmission and distribution operations, customer services, LIPA's 18 percent ownership of Nine Mile Point 2 Nuclear Station in upstate New York , and related functions. Lockheed Martin, a subcontractor to PSEG Long Island, will provide transition management, information technology, corporate business, energy efficiency services and other services.
"Operating a utility safely and reliably is our core strength and one in which we take great pride," said Ralph LaRossa , president and COO of PSE&G, New Jersey 's largest and oldest electric and gas utility. "The LIPA services agreement recognizes that commitment to excellence, and will enable us to share best management and operational practices with LIPA and their customers." PSE&G, a subsidiary of PSEG, has been recognized as the most reliable utility in the nation and in the Mid-Atlantic States.
As part of the management contract, PSEG Long Island will be expected to develop and implement a number of operational improvements to provide safe and reliable service, increase customer satisfaction and manage the operational and maintenance costs of the utility. During the two-year transition, PSEG and Lockheed Martin will appoint dedicated management teams whose employees will live and work on Long Island and prepare to transition the management of LIPA's utility services from National Grid.
PSEG Long Island, LLC awarded 10-year contract to manage LIPA electric utility system