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June 3, 2010

Statements From DiNapoli and Alessi on LIPA Contract Bid Plans

State Comptroller Thomas P. DiNapoli and State Assemblyman Marc Alessi today issued the following statements regarding Long Island Power Authority’s decision to competitively bid its contract for a new Management Services Agreement.

Comptroller DiNapoli:
“I told LIPA three years ago that future service contracts should be bid competitively. Competition for public contracts produces better quality and lower costs. Now LIPA is acting on my recommendation. Long Islanders pay some of the highest utility rates in the nation, but LIPA customers still have to endure service issues. Customers feel they are paying too much for too little.

“LIPA needs to get this contract done the right way. The new Management Service Agreement should include meaningful benchmarks and performance standards and impose real financial penalties for substandard performance. My office will scrutinize these contracts to make sure that they comply with procurement standards and ultimately provide high quality, cost effective service for Long Island families and businesses.”

Assemblyman Alessi:
“It is gratifying to see LIPA finally putting the MSA contracts out to bid. This is a major victory for the ratepayers. I have been calling for LIPA to do this since I first came to office. I even argued to the Attorney General and the State Comptroller that LIPA’s practice of extending this contract was illegal. The comptroller’s office supported my argument that the contracts must be put out to bid, otherwise his office would not approve them as required by law.

“Finally we are seeing the results of this hard fought battle and the ratepayer will finally benefit from competition. Companies will have to compete for this contract, which will drive the cost down for ratepayers. This RFP will potentially save ratepayers tens of millions of dollars. All of this would not have been possible without Comptroller DiNapoli's diligence."


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