New York Assembly Members Fred W. Thiele Jr. and Dean Murray of East Patchogue on Tuesday introduced anti conflict-of-interest legislation that would prohibit PSEG-LI, a subsidiary of New Jersey-based utility PSEG, from performing any power management services or electric resource planning for Long Island as long as PSEG continues to sell electricity into the Long Island market and PSEG-owned plants compete with existing and proposed generation plants on Long Island.
“Financial self-interest must not be allowed to cloud crucial decisions about meeting the energy needs of Long Island residents and businesses,” said Mr. Thiele in a release. “It is critical that the responsibilities and functions of LIPA’s service provider be carried out in an impartial manner so that ratepayers get the affordable, reliable electricity they deserve.”
Long Island imports at least 45 percent of its electricity, including from PSEG-owned plants in New Jersey and Connecticut.
In a 2015 filing with the U.S. Securities and Exchange Commission, PSEG expressed concern that “additions of lower-cost or more efficient generation capacity” could make its plants less economically viable.
On top of operating and maintaining a service area that provides electricity to approximately 1 million residential and commercial ratepayers, PSEG-LI is in charge of resource planning and procurement — responsibilities it assumes from LIPA. In November 2015, PSEG-LI determined that Long Island did not require new power generation until 2028, and halted the development of on-Island energy projects that would modernize the region’s aging power infrastructure and create hundreds of jobs, the assemblymen said in their release.