Commission Recommends Privatizing Long Island Power Company

Utility was slow to restore power following Sandy

A New York state commission on Monday recommended privatizing the Long Island Power Authority (LIPA), a state-owned entity that was slow to restore power to customers on Long Island following Superstorm Sandy in October.

LIPA, with just 100 employees, provides power on Long Island through a services agreement with UK power company National Grid Plc.

The Moreland Commission, set up by New York Governor Andrew Cuomo, found that LIPA had a "dysfunctional management structure" that led to an operational and communications disconnect between LIPA and National Grid, and an inadequate response to Sandy.