Assembly passes bill mandating LIPA audits

The state Assembly Wednesday unanimously approved a bill that mandates regular management audits of the Long Island Power Authority and establishes a new way for consumers to file complaints against the utility.

The bill passed 122-0.

"Everybody has appreciated how far we've come and how close we are now to doing something meaningful for ratepayers," said Assemb. Robert Sweeney (D-Lindenhurst).

State Sen. Kenneth LaValle (R-Port Jefferson), who co-sponsored the bill with Sweeney, said it will likely be taken up by the Senate next week, and he expects it to pass. LaValle called it "very carefully constructed" legislation that "makes sure ratepayers get as much protection as they possibly can."

Gov. Andrew M. Cuomo's office supports the measure, saying it would "better protect ratepayers and improve service."

The bill would, for the first time, mandate comprehensive management and operations audits of LIPA, and allow consumers to air gripes to the state Consumer Affairs division.

A LIPA spokeswoman wasn't available for comment Wednesday.

Complaints about service are now fielded by contractor National Grid, with appeals handled by LIPA.

Consumer Affairs officials didn't return calls or an email seeking comment on their pending LIPA assignment.

The bill calls for public hearings in Nassau and Suffolk counties to discuss and shape findings from the audits, which would start immediately and be repeated at least every five years.

Audits would focus on rate-setting, annual operating and capital budgets, construction costs, agency efficiency, debt service obligations, and fuel/power costs.

The state Public Service Commission would be charged with either conducting the audits or assigning the task to an outside firm.

Once completed, audits would be sent to the PSC, the governor and leaders of the Senate and Assembly, and be posted on LIPA's website.

There would also be a process for LIPA to comment on or object to the findings, including additional public hearings.