LIPA releases Request for Proposals for electrical grid services

The Long Island Power Authority (LIPA) has announced a request for proposals for a service provider to operate its electrical transmission and distribution system. This provider would be responsible for a range of services including maintenance, emergency preparedness, customer service, billing, and meter reading.

LIPA has been working with PSEG Long Island since 2014 for management services, but their current contract is set to expire on Dec. 31, 2025. The new contract would run for 10 years with a 5-year extension option and include various fee structures based on performance.

According to John Rhodes, acting LIPA CEO, the goal of this request for proposals is to ensure clean, reliable, and efficient service for customers while also providing the best value. The service territory includes Nassau and Suffolk counties on Long Island and the Rockaway Peninsula in Queens, serving over 1 million residential customers and about 134,000 commercial customers.

The evaluation process for selecting a new provider will be conducted in three phases, with proposals and responses due by Sept. 6. If a bidder other than PSEG Long Island is chosen, LIPA plans to have a one-year transition period to complete the handoff by the end of 2025.

This move by LIPA represents a significant opportunity to enhance services for customers and ensure the continued reliability and sustainability of the electric grid in the region. Stay tuned for updates as the selection process unfolds.