LIPA debating future of delivering power

The complex structure put together by then Gov. George Pataki in 1998 that resulted in the shutdown of the Shoreham nuclear power plant and the creation of the Long Island Power Authority may no longer be the best way to deliver energy to Long Island's homes and businesses, LIPA chief executive Kevin Law told a business group Tuesday morning.

Or then again, it might be. Or it might be the best in combination with some other methods of delivering power to LIPA's 1.1 million customers.

"All options are on the table," Law told a breakfast meeting of the Hauppauge Industrial Association at the Sheraton Hauppauge hotel.

Decisions about the Island's future energy needs must be made by the end of the year, Law said. LIPA's two agreements with National Grid to purchase energy from National Grid plants, and for National Grid to perform daily operation and maintenance of the electric system, both expire in 2013. A LIPA spokeswoman said the terms of the deals are not disclosed for competitive reasons.

LIPA could extend its agreements with National Grid to 2028. Or it could enhance the current arrangement with some changes to the operating agreements. It could also decide that a competitive procurement for a new operator of LIPA's electric system would be less costly. Or LIPA could decide to privatize the electric system.

No matter what, Law said, "I can't wait until 2013" to make the decisions.