Senators call for new LIPA oversight

State senators are calling for two new levels of oversight of the Long Island Power Authority, even as the state Public Service Commission raised questions about its ability to assume the work and LIPA strenuously opposed the proposal this week.

At a hearing of the State Senate Committee on Energy and Telecommunications in Farmingdale on Thursday, Sen. Charles Fuschillo Jr. said he will ask Gov. Andrew M. Cuomo to support his call for a complete management and financial audit of LIPA by a consultant overseen by the Public Service Commission.

Fuschillo (R-Merrick), also said he will call for full regulatory oversight of LIPA for the longer term -- a measure that would go beyond a bill sponsored by Sen. Kenneth LaValle (R-Port Jefferson) on Monday calling just for review of LIPA rate increases of more than 2.5 percent. LaValle said he'd consider a new bill mandating full oversight.

Fuschillo and a panel of state Republican senators, including LaValle, called for the oversight in response to concerns that recent customer overcharges and overspending on storms had lowered confidence in the authority.

Fuschillo said he will ask Cuomo to support his shorter-term call for an audit of LIPA, a suggestion that came from PSC chairman Garry Brown, who attended the meeting.

Brown, noting the Public Service Commission has no authority over LIPA, said the commission would find it "difficult if not impossible" to conduct the review of LIPA rates mandated in the recent Senate bill within the specified six months.

He also noted the commission doesn't have the staff or funding to conduct the work.

LIPA chief operating officer Michael Hervey argued strenuously against the commission oversight called for in the Senate measures. Although LIPA "is not afraid of having its rates reviewed by anyone," Hervey said the bill "would increase costs to LIPA's customers by potentially tens of millions of dollars each year."