We ended up with LIPA which is a state authority because people were fed up with the privately owned LILCO.
To have 500,000 people without lights and get them restored within a week is pretty good compared to other utilities. just look at NJ and Conn who couldnt do the same with just a noreaster coming through.
I have to agreed that LIPA has achieved some initial goals after taking the ownership of the electricity distribution network BUT in the expense of long term savings. I remembered they came to LI 3 4 year ago with a target of lowering the ratepayer of 20% and currently I think they are at 16% reduction. However, their contracts with privately owned companies like Nation Grid and MSA will never really mean their operations truly municipal. The "over time" should be cut to minimal and spread out the work in regular hours. NOT VERIFIED from statistic, but nevertheless told by a worker of National Grid, he said he has more OT after LIPA took over. I wonder why was that. Of course, they are many other loop holes one can exploit.
This could be a stretch:
I can imagine, that the office of LIPA where deals are made are actually golf clubs and high end clubs with only 3 or 4 appointees from the state and the executives of the National Grid and MSA. Of course, there must be beautiful models too.
The reason behind the stretch:
I have experience with a labor issue stricken business entity before. I represent one of prospected buyers amount the several related parties. At one time, appointees were setup by the bankruptcy court and they are lawyers with no experience in running the business and eventually turn over ownerships to some trustees, sponsored by the labor union, also with no experience in running the business. After nine months of operations, the same people (general workers) went back to the labor court saying they got no pay and the company was forced to actual bankruptcy. When the case is bought back to the bankruptcy court, the same judge asked how come after 9 months of trustee operation, the entity cannot even pay the labor??? Why the trustee do not file immediate bankruptcy? The judge obviously do not realize the business is a cash base business. The appointees must be drinking champagne in a club when they decided to hang it over the trustees.
Conclusion: I do not want federal money sent to LIPA with not so transparent operations with the dealings and contracts of National Grid and MSA. Because these money eventually goes to the private owned companies. I would rather want relieve fund directed to end users.
