Hempstead Supervisor Kate Murray has called on Gov. Andrew M. Cuomo and state Sen. Dean Skelos (R-Rockville Centre) to pass laws requiring PSEG Long Island executives to disclose their salaries and compensation packages.
"I am outraged by the arrogance and lack of responsiveness on the part of the administration at PSEG Long Island as they have clearly been stonewalling the state authority, which is considering the utility's rate increase request," Murray said in a letter.
PSEG officials said that executive compensation for its top 18 officials is not subject to state oversight according to the LIPA Reform Act.
The utility is proposing a 4 percent rate hike and has not disclosed the compensation, employee bonuses and retirement data to the state's Department of Public Service, which would rule on the price increase for Long Island.
PSEG officials said executives receive management fees under a 12-year fixed contract, based on performance and 21 utility metrics measured by LIPA and the Department of Public Service. The utility discloses salaries for its five highest-paid employees, in accordance with SEC regulations. None of the 18-member management team salaries rank in the top five, according a PSEG statement.
"If PSEG Long Island fails to perform, there are significant penalties that are incurred, up to and including termination of the contract without a termination fee," according to the utility's statement. "The salaries of the 18-person management team are paid out of the fixed management fee. Any changes in salaries come from PSEG's fixed fee rather than from ratepayers. The amount of the salaries is not a factor in determining customer rates."
Murray said state officials should change the law that keeps the salaries out of public view. Her letter was also sent to four other state senators, the Nassau County delegation of state legislators and the state Department of Public Service.
"PSEG Long Island has a responsibility to serve its ratepayers, and it should be obligated to be fully transparent in its operations and reporting, especially in light of the fact residents in the company's service area have few, if any, practical alternatives to paying utility bills replete with PSEG rate increases," Murray's letter stated.