It was created by state law in 1986 to take over the Long Island Lighting Company and shut down the Shoreham nuclear plant. But a last-minute change would go on to haunt the Long Island Power Authority for years to come.
The original legislation called for the authority trustees to be elected by the people of Long Island. The Governor at the time, Mario Cuomo, changed it to appointees named by the governor and the leaders of the Assembly and Senate. With these positions controlled by New York City-centric politicians who don’t always have Long Island interests at heart, the move spelled disaster for a region forced to pay among the highest electric rates in the nation.
The problem was dragged back into the spotlight by the resignation of LIPA Trustee Drew Biondo, who submitted a letter that calls into question the ability of the authority to represent the interests of the ratepayers. Given its critical assessment of the current state of utility affairs, the South Shore presents Biondo’s letter in its entirety.
"I submit my resignation as a member of the Board of Trustees of the Long Island Power Authority (LIPA), effective immediately.
On January 8, I became aware that the New York State Assembly asked, and an individual has accepted, a position on the LIPA Board to replace me.
While it has been customary for trustees whose terms have expired to remain in their roles on a holdover basis, often serving for multiple years—a practice that has provided the consistency, stability, and continuity that is vital to the effective governance of the Authority—it is apparent to me that rigorous oversight is no longer valued.
As I depart, I have significant concerns about the undue influence of PSEG lobbyists and others in shaping decisions regarding the governance and operation of the Authority. This influence undermines the independence and objectivity required for effective oversight. Decisions that should prioritize the interests of ratepayers and the long-term sustainability of the grid are instead subject to external pressures that compromise the Authority’s mission. Such interference erodes public confidence and is not in the best interest of ratepayers.
I must also highlight PSEG Long Island’s past conduct. The organization has consistently failed to act in good faith and employed tactics of obfuscation in its dealings. The very fact that contract terms must explicitly require PSEG to:
“...be honest, forthright, and transparent, and to fully and accurately disclose, and cause its Affiliates to fully and accurately disclose, in a timely fashion, and without obfuscation, sophistry, bias, or intent to inappropriately influence decision-making, all facts and circumstances relevant and responsive to such request of which the Service Provider and its Affiliates have Knowledge...”
is a testament to the challenges the Authority has faced in ensuring PSEG operates with the integrity and accountability demanded by its position. When public dollars are at stake, transparency and accountability are essential to ensure efficient service, prevent waste, and protect ratepayers from mismanagement. Entities seeking public funds must be subject to rigorous oversight, not shielded from it. Long Islanders must never forget Tropical Storm Isaias and PSEG’s failure. Investigations revealed that PSEG misrepresented its preparedness, failed to properly communicate outages, and then attempted to shift blame rather than accept responsibility.
As I write this, the political winds are whispering a drumbeat of rumors about the predetermined choices for both LIPA’s next CEO and its service provider, not to mention senior staff positions at LIPA. Political rumors spread like wildfire, driven by speculation, Albany insiders, and even self-interested parties. Often dismissed as gossip, history shows—at least in LIPA’s recent past—they prove eerily prescient, foreshadowing the very events they initially seemed to exaggerate.
I am disappointed that Long Island’s ratepayers never had the opportunity to benefit from a fully municipal public utility and the vision of now-retired Assemblyman Fred Thiele for a utility overseen by Long Islanders without undue influence from Albany. Long Islanders deserve a power company that is transparent and accountable directly to the ratepayers as envisioned in the original mission of the 1986 LIPA Act.
In closing, I am particularly proud to have been twice appointed as a trustee: first by the New York State Senate and, recently, by the Assembly. I hope that I have demonstrated my unwavering dedication to my responsibilities. My commitment reflected my steadfast belief in the importance of the Board’s mission and my deep sense of duty to the people of Long Island. I have always prioritized the needs of the Authority and its stakeholders, ensuring that I was fully present and engaged in the critical work required to support its objectives. And missed not a single meeting.
I am especially grateful to have served with dedicated individuals committed to making a positive impact on our community."