Editorial: LIPA: deal done, leader needed

The changing of the guard for Long Island's electrical grid means a new private utility will operate the region's public system. Unfortunately, the awarding of a management contract to PSEG of New Jersey doesn't mean rates will be lower, but it could mean the service will get better.

National Grid, which took over the operation of LIPA's transmission and distribution system when it purchased KeySpan, is being booted after five years. The London-based utility got off to a good start, but eventually the focus on Long Island was lost, as local operations were transferred to regional managers.

National Grid was criticized for excessive spending on work crews and not being responsive to consumer needs. Most damaging was the inability of Grid and LIPA to establish effective communications with each other -- and the public -- in restoring power after big storms.

PSEG is an innovative company, well equipped to modernize the system. It should learn from Grid's mistakes. For customers, however, the switch itself isn't as significant as who will guide LIPA during the two-year transition.

While the contract with PSEG will net $100 million in savings, that won't reduce bills; it's too small a part of the overall cost. Actually, rates for 2012 will rise 1.5 percent.

There has to be a way to cut costs. Now that a new manager for LIPA's pipes and wires is in place, Gov. Andrew M. Cuomo should complement it with a new management team for LIPA itself.