A commission appointed by Governor Andrew Cuomo today recommended New York State privatize the Long Island Power Authority, the state-run utility that performed abysmally following Hurricane Sandy, but what will that mean for ratepayers?
"The costs of privatization...are significant and none of these things are going to come about without a probable increase in rates," said Michael Fragin, who served on the LIPA board of trustees' finance committee through 2011.
Governor Andrew Cuomo on Tuesday once again assailed the state's power companies and what he described as their lack of accountability.
"In theory they're regulated by the state, but not so much," said the governor, who, as the state's chief executive, oversees the state's utilities.(1)
Tuesday, the same day Governor Andrew Cuomo launched a formal investigation of state utilities, the acting head of the most criticized one, LIPA, resigned.
. "I was in the interim position as acting CEO and COO for the past two years plus, and it seemed like I didn't have further opportunities here," Michael Hervey told the Wall Street Journal.
After two weeks of criticizing the power companies' performance after Hurricane Sandy, Governor Andrew Cuomo has created a Moreland Commission charged with investigating every utility company in New York State.