Bill would allow NYPA to acquire LIPA

State Sen. Kenneth LaValle Tuesday introduced legislation that would authorize the New York State Power Authority to acquire LIPA and operate it as a subsidiary, his staff said.

LaValle (R-Port Jefferson) in a statement said the move was justified because of LIPA's "lack of transparency and responsiveness to ratepayers," and because the costs of administering LIPA have been "substantial."

The bill still needs a sponsor in the Assembly, and it's unclear whether Gov. Andrew M. Cuomo will sign it. Cuomo last week ordered an audit of LIPA by the state inspector general.

LaValle Tuesday also moved to amend a bill he introduced, and the Senate passed, that subjected LIPA rate increases above 2.5 percent to Public Service Commission review. As amended, the bill would classify LIPA as a utility corporation and public utility corporation, thus making LIPA subject to the PSC's jurisdiction and oversight.

LIPA spokeswoman Vanessa Baird-Streeter said the authority hadn't yet seen either bill and couldn't comment.

LIPA has said it would cooperate in state audits, but it has lobbied against direct PSC oversight, saying it would lead to a ratings downgrade and cost ratepayers money.

Under LaValle's NYPA bill, LIPA would remain a "separate entity," while gaining access to cost savings and the expertise of NYPA, a state agency.

NYPA under chief executive Richard Kessel is under an inspector general's probe for charitable giving and other issues. John Dyson, a former NYPA chairman, is expected to be named chairman in coming months.

The bill would give NYPA the right to "exercise and perform all or part of the Long Island Power Authority's powers and functions through its directors."

@markharrington