LIPA Issues Request for Proposals for Electrical Transmission and Distribution System Operations

The Long Island Power Authority (LIPA) is seeking a new service provider to operate its electrical transmission and distribution system, as reported in a recent statement. The provider would be responsible for various tasks including maintenance, emergency preparedness, customer service, and meter reading.

LIPA has been working with PSEG Long Island since 2014, but their current contract is set to expire on Dec. 31, 2025. The new management contract would run for 10 years with a 5-year extension option. The contract includes fixed, incentive-based, and at-risk portions of the management fee.

The release of this request for proposals has been described as a significant opportunity to enhance services for LIPA customers while ensuring the best value for operations. The evaluation process for selecting a new provider is set to be completed by the end of the year, with proposals and responses due by Sept. 6.

If a bidder other than PSEG Long Island is chosen, LIPA plans to provide a one-year transition period to facilitate the handoff to the new service provider. This move is aimed at continuing to provide reliable, safe, and clean electric service for Long Island and the Rockaways.