Bruce Blakeman: Nassau comptroller will review LIPA 5-year contract extension with PSEG

Nassau County Executive Bruce Blakeman, visiting Albany Wednesday as the likely Republican challenger to Gov. Kathy Hochul in November, said he’s asked the county comptroller to review LIPA’s recently approved power-management contract extension with PSEG.

But, in a change from comments about the "cozy political backroom" deal his campaign issued just last week, Blakeman in Albany said he’d withhold judgment until that review is completed.

“I’ve asked our county comptroller, Elaine Phillips, to look into the extension, how it came about and do a cost-benefit analysis,” Blakeman said. “She is going to report to me what her findings are and basically, I will withhold comment until my comptroller has a chance to take a look at the deal and see if it was done appropriately and whether it benefits the ratepayers of Nassau County.”

A spokeswoman for Phillips didn't immediately respond to questions about the review. 

Last week, Blakeman's campaign charged Long Island ratepayers were "paying the price" for Hochul's alleged backroom deals. 

His campaign statement said that a five-year contract extension for PSEG Long Island to run grid was approved by LIPA (among other state agencies) "despite the fact that the state inspector general and an internal ethics review are investigating potentially criminal favoritism and corruption in the bidding process." 

Newsday has reported that at least two members of an internal LIPA review committee were allegedly pressured to lower scores for another company in the bidding process, Quanta Services, and that the allegations are under investigation by the inspector general, an internal LIPA ethics process and potentially other agencies that have been alerted. No one has been charged with wrongdoing. LIPA's board of mostly Hochul appointees rejected awarding the contract to Quanta and then canceled the bidding process and awarded PSEG a $493 million extension.

“Instead of delivering the best service at the lowest possible rates, [Hochul's] board appointees handed a massive contract to a politically connected company," Blakeman was quoted in the release as saying, noting PSEG's political contributions, which were previously reported by Newsday. "This deal forces Long Island families to pay some of the highest electricity rates in the nation while rewarding Democrat campaign donors."

Hochul's office didn't immediately respond to a request for comment Wednesday, but her office has previously said she expects her appointees on the board to “follow all legal and ethical standards and if anyone is found to have violated laws, she will ensure they are referred to the appropriate law enforcement authorities."

LIPA, in a statement, noted the amended contract with PSEG "will deliver about $17 million in savings for customers over the life of the agreement, driven by lower management fees, stronger cost controls, and pay that is tied to performance.”

“At a time when families and businesses are under real financial pressure, this amendment cuts unnecessary costs while keeping service safe and reliable, and puts ratepayers first,” LIPA said.

A spokesperson for PSEG didn't immediately respond to requests for comment.

State Comptroller Thomas DiNapoli late last month approved the contract extension, while taking the unprecedented step of requesting language that the contract be canceled without termination fees to LIPA if a probe substantiates findings of "criminality, fraud or abuse," Newsday reported. 

Blakeman on Wednesday suggested he wasn't alone in expressing issues with the LIPA contract. 

“Listen, there have been concerns by people who feel the process was unfair,” Blakeman told Newsday at the state Capitol. “So, obviously, when there is a fairness and integrity issue, that’s some[thing] that is important. But I don’t want to make any statements without the analysis of our county comptroller.”