Public Service Enterprise Group (PSEG) announced today that its newest subsidiary – PSEG Long Island – will operate under an enhanced operating services agreement when it begins managing the Long Island Power Authority’s electric system on Jan. 1, 2014.
The enhanced contract can take effect now that LIPA has received a favorable ruling from the Internal Revenue Service that it can retain its tax exempt status. The IRS decision was the final regulatory approval needed before the revised contract could take effect.
The enhanced contract, reached in July following adoption of the LIPA Reform Act, gives PSEG Long Island increased accountability and decision-making ability in managing LIPA’s transmission and distribution system that serves 1.1 million customers on Long Island and the Rockaway Peninsula.
The revised contract also paves the way for the new company to be branded with the familiar orange sunburst that has been part of the PSEG brand for more than 40 years in New Jersey, Connecticut and Bethlehem, NY. PSEG Long Island will begin placing its brand on utility vehicles, customer bills, signage at company work locations, and employee uniforms on Jan.1. All company employees – from meter readers to managers – will wear identification badges that sport the new logo.
PSEG Long Island LLC was selected by LIPA in Dec. 2011 to manage LIPA’s electric system. The 12-year contract includes commitments to improve customer satisfaction and provide safe, reliable service for LIPA customers.