Report
October 1, 2011
Analysis of Strategic Organizational Options for the Long Island Power Authority
Prepared for The Long Island Power Authority
The Long Island Power Authority (LIPA) is a municipal electric utility that serves Long Island and parts of Queens. Most of LIPA’s resources are focused on operating and maintaining its electric transmission and distribution system and, in this regard, it can be considered primarily a “T&D utility,” even though the majority of its expenses in customer bills are for generation (purchased power and fuel). LIPA is currently operating under a fairly unique organizational structure under which most of the work associated with carrying out utility field operations is performed by a service provider (National Grid USA) under a contractual agreement referred to as a Management Services Agreement (MSA).