DPS - Long Island - Oversight for Electric Customers


Rate Setting Process

The LIPA Reform Act (LRA) provides a statutory framework for Long Island Power Authority (LIPA) and its service provider’s rate-setting process and for oversight to be exercised by the Department of Public Service (Department or DPS). In accordance with the LRA, the DPS will review and make recommendations to the LIPA Board of Trustees (BOT) with respect to rates and charges to be established by LIPA. The purpose of the DPS review is to make recommendations designed to ensure that LIPA and PSEG LI provide safe and adequate electric service at the lowest rates consistent with sound fiscal operating practices.

Learn more about the rate setting process


The DPS review of the PSEG Long Island Three-Year Rate Proposal was initiated on January 30, 2015. At the conclusion of the statutory eight month process DPS made recommendations to the LIPA Board of Trustees with respect to rates and charges to be established by PSEG Long Island and become applicable on or after January 1, 2016. 

DPS will review future requests for rate increases of 2.5 percent or more. DPS-LI will also review smaller rate requests at the request of LIPA or PSEG LI.

LIPA’s Tariff and Regulatory Filings

Your Electric Bill

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

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

  • Delivery and System Charges: Delivery and System charges comprise the cost to deliver the electricity through the utility’s distribution system to your home; to maintain the network; and for administrative services.
  • Power Supply Charges: Power Supply Charges are the costs associated with the purchase of fuel that is used to produce electricity, and for the purchase of power.

PSEG LI does not make a profit on power supply charges. PSEG LI buys supply of electricity from a variety of sources, and the power supply prices are not set by the DPS, PSEG LI or LIPA. Supply prices are set by the market, and are based on supply and demand.

Information about your electric bill can also be found on the PSEG Long Island website or you may visit one of their walk-in customer centers or contact them at 800-490-0025.

Emergency Response Plan

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

The ERP illustrates and outlines the activities the utility (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 on Long Island and on the Rockaway Peninsula in Queens County. PSEG LI’s ERP is filed annually by December 15th and the New York State Department of Public Service (DPS) Staff team conducts a thorough review of the ERP.

Once the review is complete recommendations by DPS are provided to the LIPA Board of Trustees (BOT) for formal adoption. Once adopted by the BOT, the ERP is made available to the public on the DPS website. The final ERP will also be posted on both the LIPA and PSEG LI websites. Below is a link to the 2015 PSEG Long Island ERP and a list of key sections for customer and stakeholder reference.

2015 PSEG Long Island Emergency Restoration Plan 

In August 2014, PSEG LI implemented a new Outage Management System (OMS). The OMS is intended to improve PSEG LI’s ability to identify and manage outage conditions. This system improves the outage and restoration information available to Customer Service Representatives (CSRs), system operators, customers, municipal and elected officials, and other key stakeholders. In addition, the system provides for more accurate Estimated Time of Restoration (ETR), improved efficiency and expediency when deploying utility crews and resources, increased awareness and timely status updates and improved accuracy in the identification of outage locations.

PSEG Long Island Outage Map 

Under the LRA, the DPS Long Island Office (DPS LI) is responsible for monitoring PSEG LI’s storm or heat event preparation and response before and during storm events. DPS LI performs continuous review of the company’s storm preparation and response, including assessment of the reasonableness of storm restoration costs, and that appropriate responses were 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.

Utility 2.0


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 2022 Utility 2.0 Plan update to DPS on July 1, 2022 which includes, as an appendix, their annual Energy Efficiency, Beneficial Electrification, & Demand Response Plan (EEBEDR) (previously referred to as the Energy Efficiency and Demand Response Plan - EEDR).

As part of the Department’s regulatory oversight of electric service operations on Long Island pursuant to the Public Service Law, DPS reviews the proposed plans and provides recommendations to the LIPA Board of Trustees (BOT) for consideration in its approval and budget process which is expected to conclude by the end of 2022.


Utility 2.0 Plan Proposals

PSEG LI’s 2022 Utility 2.0 Plan update details 22 initiatives previously reviewed by DPS and approved in prior years by the LIPA Board of Trustees. Additionally, the PSEG LI is proposing three new programs in its 2022 Utility 2.0 Plan to begin in 2023, including:

  • Residential Energy Storage System Incentive
  • Storage/EV Hosting Capacity Maps
  • Integrated Energy Data Resource (IEDR)


Energy Efficiency, Beneficial Electrification, & Demand Response Plan (EEBEDR) Proposals

The EEBEDR Plan describes PSEG LI’s customer-facing energy efficiency programs for residential and commercial customers, their associated energy savings targets, program budgets, and benefit-cost analyses. PSEG LI utilizes an independent evaluator for evaluation, measurement and verification of energy savings and for technical recommendations to improve program performance on an annual basis.

The proposed plan provides updates to existing EEBEDR Programs as well as newly proposed programs. The total budget for the 2022 EEBEDR portfolio is $93.15 million. Some of the key program proposals in the Plan include but are not limited to:

  • Energy Efficient Products: provides rebates or incentives for Energy Star certified lighting, Energy Star appliances (e.g. dryers, water heaters, dehumidifiers), pool pumps, advanced power strips, and battery-operated lawn care equipment. This also includes an Appliance Recycling program which provides vouchers to residential and commercial customers upon proper disposal of inefficient refrigerators, freezers, room air conditioners, and dehumidifiers.
  • Home Comfort: offers incentives for efficient heating and cooling systems. Home Comfort Partners work with customers to encourage high efficiency choices when purchasing and installing ENERGY STAR ducted split air-source heat pumps, ductless mini split air-source heat pumps, and packaged terminal heat pumps.
  • Residential Energy Affordability Partnership (REAP): provides efficiency measures and a free comprehensive home assessment for income-eligible customers. The program provides education and program referrals intended to help participants save energy and reduce electric bills.
  • Home Performance with Energy Star: is a Federal program administered locally by PSEG LI. This program provides free professional energy audits for any single-family homeowner in PSEG LI service territory. The customer receives a comprehensive whole-house energy review including appliances, insulation, and domestic hot water. Eligible customers with electric heat can participate in the free Home Performance Direct Install program, which includes a Home Energy Assessment and select free efficiency upgrades.
  • Commercial Efficiency programs: provides rebates for energy savings measures, such as lighting, air conditioning, and refrigeration. Technical Assistance rebates are available to offset the cost of engineering, design, and energy modelling services for qualifying projects.


State Goals

The Plans are developed in alignment with NY State strategic priorities. These priorities and associated targets are primarily set forth in statute and Public Service Commission policy which are the basis for Department recommendations. Some of the more significant state policy pronouncements and guidance documents related to energy efficiency can be found in Case 18-M-0084 in the Department’s Document Matter Management system (DMM), including the Order Authorizing Utility Energy Efficiency and Building Electrification Portfolios Through 2025 issued January 16, 2020. The PSC has set forth a pathway to achieving a statewide 185 TBTU site energy savings target by 2025. The Climate Leadership and Community Protection Act (CLCPA) was passed in June 2019 which further solidified clean energy goals for New York State.

PSEG Long Island’s Utility 2.0 Plan


Public Comment

To ensure full public participation in the review of the proposed Utility 2.0/ EEBEDR Plan, DPS invited public and stakeholder input and established a public comment period that began on July 6, 2022. Comments filed with the Department were posted to the Department’s Document Matter Management system (DMM) which is accessible online. Comments became part of the record considered by the Department in its review and development of recommendations.

Interested persons or parties were invited to submit comments on the Plan by August 22, 2022 and reply comments by September 7, 2022.

Comments may be submitted via:

  • Online Comment Form: Comments may be entered directly into the case via the www.dps.ny.gov website, by entering the associated matter number (14-01299) in the Search option found on the homepage. After opening the case, enter comments in the “Post Comments” tab located at the top of the page or SUBMIT COMMENTS HERE.
  • Email or First Class Mail: Comments may be sent electronically to the DPS Secretary, at [email protected], or mailed and delivered to Hon. Michelle L. Phillips, Secretary to the Commission New York State Public Service, Three Empire State Plaza, Albany, New York 12223-1350. Your comments should refer to “Matter Number 14-01299—PSEG Long Island’s Utility 2.0 Plan.”
  • Toll-free Opinion Line: Comments may also be submitted through the DPS Opinion Line at 1-800-335-2120. The number is designed to take comments about pending cases from in-state callers, 24 hours a day. Callers should press “2” to leave comments, mentioning PSEG Long Island’s Utility 2.0 Plan.

For more information about the review process for the Utility 2.0 or EEBEDR Plans, you may contact the Department of Public Service at 1-888-275-7721.


Stay Connected

Staying informed of activity is easy through the Department's Document and Matter Management (DMM) System. As a registered user of the application you will be able to self-subscribe to the service or party list, submit Comments and E-File.

  • E-Filing - Electronic filing through the Department's Document and Matter Management (DMM) System provides for secure, fast and accurate processing of your filings. With E-Filing you will be able to submit up to 100 MB of data of both public and confidential documents. E-Filing is the preferred method of submission of filings.
  • Comments - See Submitting Comments section above.
  • Service List - By subscribing to a service list for a case, an email notification will be sent to you when a filing and/or issuance is entered in the case. Subscribers can request to receive “Commission Issuances Only” or “Filings and Commissions Issuances”.
  • Party List - Generally, parties commit to contribute to the development of a complete record in a proceeding by conducting discovery, submitting testimony, briefs, or other formal written comments, and/or participating in evidentiary hearings, procedural conferences and other formal events conducted in the case.


For more information and step by step instructions visit:


Important Dates

  • 07/01/2022 PSEG LI filed their Utility 2.0 and EEBEDR Plan
  • 07/27/2022 PSEG LI hosted Public Information Session
  • 08/22/2022 Public Comments Due
  • 09/07/2022 Reply Comments Due
  • 11/01/2022 DPS issued final recommendation to LIPA

Other Review Areas

Annual Reviews

Capital Expenditure Plans
DPS LI will review proposed plans to make electricity infrastructure improvements that may be necessary to ensure reliability or meet new demand. DPS LI will review proposed capital expenditure plans.

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.