State lawmakers who have key influence over whether Gov. Andrew M. Cuomo’s “privatization” proposal for LIPA ever sees the light of day are expressing sharp skepticism about it, as Newsday’s Mark Harrington details today.
Harrington writes: “Even before Cuomo formally announced the plan to sell off LIPA's assets to a private company and make LIPA merely a "holding company," longtime LIPA watchdogs in the legislature said a fully municipalized LIPA needed to be explored seriously. In the days since, the option appears to be winning advocates.”
Also, Crain’s last week quoted utility analysts saying that selling LIPA to a private for-profit corporation would require the state assuming at least $4 billion of its debt – a big burden for the state to take on in its current fiscal straits.