PSEG Long Island secured a five‑year extension of its operations services agreement with the Long Island Power Authority (LIPA), effective January 1 2026 through December 31 2030, after the New York State Comptroller granted final approval on December 30 2025.
The extension follows endorsements by the LIPA Board of Trustees on September 25 2025 and the New York State Attorney General in October 2025. The Comptroller’s approval included language allowing termination if investigations substantiate allegations of criminality, fraud, or abuse, reflecting ongoing probes into procurement irregularities.
The five‑year extension is expected to save Long Island and Rockaway customers an estimated $17 million in management fees over the previous contract, while providing PSEG Long Island with a stable revenue stream that underpins its capital deployment plan and supports predictable returns for ratepayers.
PSEG Long Island serves about 1.2 million customers. Since taking over operations in 2014, the company has cut outage frequency by 26 %, outage duration by 47 %, and momentary outages by 63 %, while improving workforce safety by over 75 % and earning high customer‑satisfaction rankings.
The announcement coincides with leadership changes: Scott Jennings will become president and COO effective January 5 2026, and John Latka will serve as senior vice president of electric operations. PSEG’s chair Ralph LaRossa praised Jennings’ experience and expressed confidence that the new leadership will maintain energy affordability and reliability.
The extension reinforces PSEG Long Island’s strategic partnership with LIPA, secures a predictable revenue base, and positions the company to invest in infrastructure upgrades and reliability initiatives while keeping costs low for ratepayers.
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