New utility watchdog coming to Long Island

The state Department of Public Service’s Long Island office, criticized by some lawmakers and activists for its performance as a LIPA/PSEG watchdog, has been paying its former director to oversee operations since his retirement earlier this year, the state agency confirmed.

A new director is expected to be hired soon, along with an expanded staff, DPS officials said.

At the same time, a top DPS enforcement director who once served on LIPA's Task Force on PSEG's performance during Tropical Storm Isaias and had recommended that LIPA consider terminating its PSEG contract, has left the agency to take a high-level job at National Grid.

The Long Island director's job has been held by Guy Mazza, a former state assemblyman and deputy Nassau County attorney who took over the job from director Julia Bovey in 2017.

Mazza retired from the $164,227-a-year job March 30, but has been filling the DPS role on an acting basis.

Mazza, who earns $60.18 an hour, receives a gross monthly pension of $8,801, or $105,608 a year, according to state Comptroller Thomas DiNapoli’s office.

Four people with knowledge of the matter said Mazza soon will be replaced by Carrie Meek Gallagher, whose LinkedIn page lists her as acting deputy secretary for energy and environment in the administration of former Gov. Andrew M. Cuomo, who resigned Monday.

The DEC didn’t respond to a request for comment, and Gallagher couldn’t be reached.

DSP spokesman James Denn said, "an announcement for a new Long Island Department of Public Service regional director to replace retired regional director Guy Mazza is forthcoming."

Denn said that after retiring, Mazza "agreed to come back to the Department on a part-time, as-needed basis," which Denn called a "common practice for state agencies."

Mazza’s hourly salary was "reviewed and approved by the Department of Civil Service," Denn said.

The Department of Public Service is the enforcement arm of the Public Service Commission.

The Long Island office in Plainview was created as a compromise after some state lawmakers had called for full PSC regulatory authority over the Long Island utility.

Under former Cuomo’s LIPA Reform Act of 2013, DPS received only "review and recommend" authority over LIPA.

The DPS Long Island office, with a staff of 22, is preparing to hire up to 10 employees, according to an internal listing reviewed by Newsday.

"Given the added responsibilities expected due to its increased oversight of PSEG LI, DPS is looking to add staff members to the current roster of 22 at its Long Island office," Denn explained.

But state Assemb. Fred Thiele (I-Sag Harbor) said of the Long Island DPS office: "It has no authority and has been a waste of space since Julia Bovey left. It literally has contributed nothing to the process."

Mazza occasionally attended LIPA board meetings and was almost never publicly critical of the electric utility.

"The mission of DPS-LI needs to be revised," Thiele said. "The review and recommend role is worthless."

Denn countered the office has "delivered tangible wins" for ratepayers since its formation with a $5.5 million budget in 2014, including helping to keep rate increases "nearly flat" while boosting green energy.

"Any suggestion otherwise is untrue," Denn said.

Marjorie Harrison, a utility watchdog at Ratepayer Alert!, an activist group in Merrick, said, "as far as DPS’s oversight role vis a vis LIPA, I think the die was cast when LIPA was established and was protected from regular, public PSC rate cases that LILCO was subject to, whatever level of hikes it was seeking."

The Long Island Power Authority was formed to take over the Long Island Lighting Company, a private power company.

Meanwhile, Joseph Suich, a former director of the statewide DPS office of investigations and enforcement, has left the agency and recently took a job as chief compliance officer at National Grid.

Suich wrote one of the early letters recommending that LIPA consider terminating its contract with PSEG Long Island following Isaias storm failures.

National Grid in a statement said Suich "will drive a culture of compliance that is consistent with National Grid’s values."

National Grid is under DPS investigation after five former employees were charged in a kickback scheme involving maintenance of field offices also used by PSEG. National Grid has since parted company with the contractors, whose officials are cooperating in the probe.

Suich in a statement said he would "reinforce accountability" at the company.

"I look forward to working with the business to drive a culture of speaking up," Suich said.

Denn said Suich’s hiring by National Grid didn’t violate agency rules that preclude "appearing or practicing before the Public Service Commission or rendering any service in relation to any case before the PSC" for their new employer for two years.

Denn said Suich has taken a role at an affiliate of National Grid that is "non-regulated."

By Mark Harrington

mark.harrington@newsday.comMHarringtonNews

Mark Harrington, a Newsday reporter since 1999, covers energy, wineries, Indian affairs and fisheries.