Thiele, PSEG battle over ‘conflict of interest’ charge
Assemblyman Fred Thiele Jr. (I-Sag Harbor) has joined with his colleague, Assemblyman Dean Murray (R-East Patchogue), to sponsor legislation aimed at prohibiting PSEG from performing any power management services or electric resource planning on Long Island while it sells electricity to the Long Island market.The legislation is aimed at curbing what the legislators said is a conflict of interest since PSEG-owned plants compete with existing and proposed generation plants on the Long Island.
“Financial self-interest must not be allowed to cloud critical decisions about meeting the energy needs of Long Island residents and businesses,” Mr. Thiele said.
He called it “critical that the responsibilities and functions of LIPA’s service provider be carried out in an impartial manner” to ensure ratepayers affordable, reliable electricity.
Long Island imports a minimum of 45 percent of its electricity, including what it purchases from PSEG-owned plants in New Jersey and Connecticut, Mr. Thiele said.
“New additions of lower-cost or more efficient generation capacity could make our plants less economic in the future,” according to PSEG’s filing with the U.S. Securities and Exchange Commission.
“I am proud to support legislation that protects ratepayers and holds accountable PSEG for putting its bottom line ahead of the interests of Long Island families,” Mr. Thiele said.“This bill aims to put an end to such prejudice against efforts to boost on-Island generation.”
PSEG spokesman Jeffrey Weir disputes the need for the bill.
“The notion that an on-Island generation source would be more affordable is flawed,” Mr. Weir said.
LIPA doesn’t purchase power directly from PSEG, Mr. Weir said. It has contracts with other suppliers that pre-date PSEG’s involvement, Mr. Weir said. Those suppliers purchase only a tiny percentage of their power from PSEG, he added.
With regard to a “Caithness Long Island Energy II” project that LIPA embraced in 2013 as a means of reducing its reliance on the Island’s aging power plants, Mr. Weir said PSEG’s initial analysis showed that such a plant would increase rates for customers by approximately six percent in the first full year of operation.”
“In 2015, our electric rates were the lowest among five comparable major utilities, according to data from the U.S. Energy Information Administration,” he said.
“PSEG Long Island is proud to continue a tradition of pursuing long-term rate stability while maintaining best-in-the-state overhead electrical reliability for Long Island and the Rockaways,” Mr. Weir said. “Our average rates are as much as 30 percent lower than those of five other major electrical utilities that serve the region.”
