LIPA eyes 3 competitive bids to run grid

The Long Island Power Authority has narrowed to three the list of companies competing to run the Island's electric grid in a process that could see the $2.367-billion contract awarded by competitive bid for the first time in LIPA's 13-year history.

The contract is currently held by National Grid, the British-based company that took it over when it bought KeySpan in 2007. National Grid employees are LIPA's front line for electric system repairs, meter reading, call center responses, billing and nearly all other LIPA-branded business. Local business leaders and politicians had been calling for LIPA to put the contract out to bid for years.

Last year, Newsday reported that Con Edison, New Jersey's PSE&G and Connecticut Power & Light were among companies that had filed papers expressing interest. LIPA declined to name any of the finalists. National Grid has said it seeks the contract and expects to be competitive.

This week, Con Ed spokesman Chris Olert acknowledged the company was among those that had submitted a bid last year, but declined to discuss the current bidding process. "We are in the running. That's no secret," he said of the company's 2010 bid.

Asked why Con Ed wanted to add Long Island to its metro-New York service area, he said, "We have experience in the delivery of reliable service. And it adjoins our service territory. It's not like we'd be going somewhere we don't know climate or region. It's literally next door."