DPS - Long Island - Oversight for Electric Customers

Pursuant to the LIPA Reform (LRA), in accordance with Public Service Law (PSL), Public Authorities Law and Section 16, Part 105 of the New York Codes, Rules and Regulations, PSEG LI is required to prepare an annual Emergency Response Plan (ERP).

The ERP outlines the activities PSEG LI will undertake to prepare for and respond to electric emergency events that may affect customers in the Long Island Power Authority’s (LIPA) service territory, which covers Long Island and the Rockaway Peninsula. PSEG LI files its ERP annually by December 15, and the New York State Department of Public Service (DPS) Staff conducts a thorough review of the ERP.

Once the review is completed, DPS provides its recommendations to the LIPA Board of Trustees (BOT) for formal adoption. The final ERP will be made available to the public on the DPS Document and Matter Management System (DMM). The final ERP will also be posted on the PSEG LI website. 

In 2022, PSEG LI upgraded their Outage Management System (OMS) functionality to improve the quality of the reporting data, and the dispatching and scheduling of work. In addition, the OMS improves the transparency of outage and restoration information by enabling the sharing of this information with Customer Service Representatives, system operators, customers, municipal and elected officials, and other key stakeholders. Moreover, the OMS provides more accurate Estimated Time of Restoration, enhances efficiency and expediency in deploying utility crews and resources, increases awareness with timely status updates, and improves the accuracy of outage location identification. Customers can view the most up to date outage information at PSEG Long Island Outage Map.

Under the PSL, the DPS Long Island Office (DPS LIO) is responsible for monitoring PSEG LI’s preparation and response to storm or heat events before and during these events. DPS LIO staff continuously reviews PSEG LI’s storm preparation and response, assesses the reasonableness of storm restoration costs, and ensures that appropriate actions are taken.

If you see a downed power line, please stay as far away from it as possible and contact PSEG LI (1-800-490-0075) to report the downed wire immediately. Learn more about preparing for a storm by visiting the PSEG LI website.

Rate Setting Process

The Long Island Power Authority’s (LIPA) rate setting process is governed by the LIPA Reform Act (LRA) and is subject to oversight by the New York State Department of Public Service (DPS) and approval by the LIPA Board of Trustees (BoT). This process is designed to ensure that electric rates are fair, reasonable, and support the safe and reliable delivery of electric service. The key steps in the rate setting process are outlined below:

1. Rate Proposal Development
   • PSEG Long Island (PSEG LI, LIPA’s Service Provider) submits a rate/tariff proposal (proposal) to LIPA.
   • The proposal outlines the revenues required to meet operational, financial, and regulatory obligations while delivering safe, reliable, and cost-effective electricity to customers.
2. DPS Review
   • The DPS LIO conducts a detailed and comprehensive review of the rate/tariff proposal.
   • DPS evaluates whether the proposed rates are just, reasonable, aligned with sound fiscal and operational practices, and consistent with objectives and policies set out by the Authority, DPS, and the State of New York.
3. Public Comment
   • LIPA issues a public notice regarding the rate/tariff proposal and provides an opportunity for public comments in accordance with the State Administrative Procedure Act (SAPA).
   • Public hearings and comment periods are held during the DPS review process to gather feedback from customers and stakeholders.
   • All public input is carefully reviewed and considered in the evaluation of the proposal.
4. DPS Recommendations
   • DPS submits a letter to the LIPA BoT summarizing its review and providing recommendations for approval, rejection, or modifications to the proposal.
   • These recommendations aim to balance customer affordability with the utility’s ability to maintain safe and reliable service.
5. LIPA BoT Review and Adoption
   • The LIPA BoT reviews the DPS recommendations and considers public feedback before making final decisions on the rate/tariff proposal.
   • Once approved by the BoT, the new rates/tariffs are implemented by PSEG LI.
6. Implementation and Monitoring
   • The approved rates/tariffs are applied to customer bills.
   • DPS continues to monitor PSEG LI’s implementation performance to ensure compliance with the approved rate/tariff plan.

Additionally, if LIPA’s proposed rate adjustments result in an increase in LIPA’s annual aggregate delivery revenue beyond the two and one-half percent threshold, DPS will initiate a major rate case proceeding to allow more time for thorough review and provide additional opportunity for the public and other third parties to participate. LIPA’s most recent rate case proceeding occurred in 2015, which established rates for the three-year period from 2016-2018. Moreover, LIPA has updated its rates annually since 2019.

Additional Resources

• LIPA’s Tariff for Electric Service
• LIPA’s proposed tariff modifications and previously approved filings
• Matter Number 15-00262: Long Island Power Authority and PSEG Long Island Three-Year Rate Plan for 2016-2018 

Your Electric Bill

Understanding your bill is an important aspect of being an electric customer. PSEG LI follows New York State regulations that stipulate what must appear on a customer’s utility bill to recover the cost of electric service. Your bill contains details about how much electricity you’ve used, and the associated costs involved in providing electric service to you.

In general, your electric bill is comprised of two major components:

• Delivery and System Charges: These charges cover the cost of delivering the electricity through the utility’s distribution system to your home, maintaining the network, providing a 24/7 connection to the grid, and administrative services.
• Power Supply Charges: These charges recover the costs incurred for purchasing fuel to produce electricity and to buy power from various suppliers.

More information about your electric bill can be found on the PSEG LI website. You may also visit one of their walk-in customer centers or contact them at 800-490-0025.

• List of PSEG LI Customer Service Centers

Pursuant to the Public Authorities Law, PSEG LI, Service Provider for the Long Island Power Authority (LIPA), submits for review to the Department of Public Service (Department or DPS), proposed plans related to implementation of energy efficiency measures, distributed generation and/or advanced grid technology programs, having the purpose of providing customers with tools to more effectively manage their energy usage and utility bills and improving system reliability and power quality. PSEG LI submitted its proposed 2023 Utility 2.0 Plan update to DPS on June 30, 2023. PSEG LI’s annual Energy Efficiency Plan is included as an appendix with the filing.

Visit the PSEG LI's Utility 2.0 Plan Update & Energy Efficiency (EE) Plan page for more information.

Annual Reviews

Capital Expenditure Plans

DPS reviews proposed plans for electricity infrastructure improvements that may be necessary to ensure the safety and reliability of the electric system while meeting new demand. DPS LIO also monitors capital expenditures and tracks variances on a monthly basis.

Reliability Report

PSEG LI submits its reliability report by March 31 of each year.  The report includes detailed assessments of system performance, including the historic performance of the preceding five years, outage trends across LIPA’s four geographic divisions, reliability improvement programs, analyses of worst-performing circuits, and corrective actions taken.  DPS LIo reviews PSEG LI’s reliability report annually to ensure compliance with DPS’s reliability performance report requirements. 

Incentive Based Performance Metrics

The Operations Service Agreement (“OSA”) between the Long Island Lighting Company d/b/a LIPA, a wholly owned subsidiary of the Long Island Power Authority, and PSEG Long Island (“PSEG LI”) established performance metrics to measure PSEG LI’s performance against operational and customer satisfaction goals. Pursuant to the LRA, the Department reviews PSEG LI’s report of its performance against the metrics in the OSA, relevant supporting data and information, and LIPA’s evaluation of the data, information and reports. This review will help identify whether PSEG LI’s performance entitles it to incentives and whether improvements need to be made. Staged Updates and Utility Debt Securitization.

Authority (UDSA) Reconciliations

DPS LI will provide on-going monitoring oversight of the Company's actual costs in relation to forecasts through updated filings in accordance with the direction provided in the recently concluded three-year rate proceeding. The filings will capture known changes such as: 1) savings resulting from the UDSA bonds, 2) costs of debt and current interest rates, 3) PSEG LI labor costs resulting from a new union collective bargaining agreement (CBA), 4) actual payments-in-lieu-of-taxes (PILOTs) on transmission and distribution property, and 5) unanticipated costs associated with changes in federal, state or local laws, or rules, regulations and orders.

Management Audits

On February 1, 2012, the Long Island Power Authority Oversight and Accountability Act (the Act) signed into law. The Act requires a review and evaluation of the Authority’s overall operations and management practices that includes, among other things, an examination of overall efficiency, construction and capital program planning, the Fuel and Purchased Power Cost Adjustment, the annual budgeting process, debt service obligations and the Authority’s compliance with its debt covenants. Additional comprehensive Management and Operations audits shall be initiated at least once every five years.

The first DPS comprehensive management and operations audit of LIPA was issued in September 2013, and contained 83 recommendations. These recommendations are to be used by LIPA and PSEG LI to ensure an improved level of service to electric customers on Long Island.

The next DPS-LI management and operational audit of LIPA and its Service Provider is currently ongoing and will be completed by NorthStar Consulting Group Inc. To learn more, visit the Comprehensive Management & Operations Audit of LIPA and PSEG Long Island webpage.

As Needed External Audits

The LIPA Reform Act authorizes the DPS to review all books and records of the Authority and the Service Provider, interview all appropriate personnel to perform financial audits and examinations relative to utility rate changes, fuel clause operations, prudence reviews and state and federal tax changes.