Head of Long Island Power Authority Will Step Aside Along with Other Board Members, But Problems Have Deep Roots
As the sun set on Veterans Day, 2012, tens of thousands of homes on New York’s Long Island prepared to spend another night in darkness. The lack of light was not part of any particular memorial or observance; instead, it was the noisome and needless culmination of decades of mismanagement and malfeasance by a power company still struggling to pay for a now-moldering nuclear plant that never provided a single usable kilowatt to the region’s utility customers.
The enterprise in charge of all that darkness bears little resemblance to the sorts of power companies that provide electricity to most Americans–it is not a private energy conglomerate, nor is it really a state- or municipality-owned public utility–but the pain and frustration felt by Long Island residents should be familiar to many. And the tale of how an agency mandated by law to provide “a safer, more efficient, reliable and economical supply of electric energy” failed to deliver any of that is at its very least cautionary, and can likely serve as an object lesson for the entire country.
Almost immediately, the United States will be faced with tough choices about how to create and deliver electrical power. Those choices are defined not just by demand but by a warming climate and an infrastructure already threatened by the changes that climate brings. When one choice, made by a private concern nearly 50 years ago, means weeks of power outages and billions of dollars in repair costs today, it suggests new decisions about America’s energy strategy should be handled with care.
A stormy history
Two weeks after Hurricane-cum-Superstorm Sandy battered the eastern coast of the United States, upwards of 76,000 customers of the Long Island Power Authority (LIPA) were still without power. That number is down markedly from the one million LIPA customers (91 percent of LIPA’s total customer base) that lost power as Sandy’s fierce winds, heavy rains and massive storm surge came up the Atlantic Coast on Monday, October 29, and down, too, from the over 300,000 still without service on election day, but at each step of the process, consumers and outside observers alike agreed it was too many waiting too long.
And paying too much. LIPA customers suffer some of the highest utility rates in the country, and yet, the power outages that came with last month’s storm–and a subsequent snowstorm nine days later–while disgraceful, were far from unexpected. The Long Island Power Authority and its corporate predecessor, the Long Island Lighting Company (LILCO), have a long track record of service failures and glacial disaster response times dating back to Hurricane Gloria, which hit the region in the autumn of 1985.
After Gloria, when many Long Island homes lost power for two weeks, and again after widespread outages resulted from 2011′s Hurricane Irene, the companies responsible for providing electricity to the residents of most of Nassau and Suffolk Counties, along with parts of the Borough of Queens in New York City, were told to make infrastructure improvements. In 2006, it was reported that LIPA had pledged $20 million annually in grid improvements. But the reality proved to be substantially less–around $12.5 million–while LIPA also cut back on transmission line inspections.
Amidst the current turmoil, New York Governor Andrew Cuomo has been highly critical of LIPA, calling for the “removal of management” for the “colossal misjudgments” that led to the utility’s failures. Cuomo made similar statements about LIPA and its private, for-profit subcontractor, National Grid, last year after Hurricane Irene. But as another day mercifully dawned on tens of thousands of homes still without electricity over two weeks after Sandy moved inland, the dysfunctional structure in charge of the dysfunctional infrastructure remains largely unchanged.
Which, it must be noted, is especially vexing because Governor Cuomo should not be powerless when it came to making changes to the Long Island Power Authority.
It was Andrew’s father, Governor Mario Cuomo, who oversaw the creation of LIPA in 1985 to clean up the fiscal and physical failures of the Long Island Lighting Company. LILCO’s inability to quickly restore power to hundreds of thousands of customers after Hurricane Gloria met with calls for change quite similar to contemporary outrage. But it was LILCO’s crushing debt that perhaps exacerbated problems with post-Gloria cleanup and absolutely precipitated the government takeover.
The best-laid schemes