Thiele still hot on PSEG heels
In his ongoing assault on PSEG-LI, Assemblyman Fred Thiele Jr. took issue today with the utility’s claim that executive compensation for its 18 top officials isn’t subject to state oversight.Under the LIPA Reform Act, meant to control costs and provide greater responsiveness to customer needs, PSEG-LI maintains it’s not required to provide any information about executive compensation.
PSEG works under a management contract with the Long Island Power Authority and is currently compensated at the rate of $45 million a year. But that figure is due to rise to $73 million next year, Mr. Thiele said.
The compensation package was arrived at through a bid process, according to PSEG Director of Communications Jeffrey Weir. The only way it increases is if the company takes on more work for LIPA, Mr. Weir said in a recent interview.
But Mr. Thiele argues that executive compensation is a major component of utility rate cases and needs to be disclosed.
Under the LIPA Reform Act, the state has granted PSEG-LI “a virtual unregulated monopoly with near dictatorial authority over Long Island’s energy future,” Mr. Thiele said. “No other utility company in the nation has the type of unfettered dominion over its service territory,” he said.
“I call on PSEG-LI to disclose current executive compensation for its executives as well as proposed compensation for 2016, 2017 and 2018,” Mr. Thiele said.
“It is clear that the state legislature needs to revisit the LIPA Reform Act and the unprecedented authority that has been granted to a private company in its role as a contractor to LIPA,” he said.
On a related issue, Mr. Thiele reported that the Assembly budget proposal adopted ;last week would restrict LIPA from extending the term of the its debt should it proceed to issue securitized restructuring bonds.
“LIPA should have the authority to refinance its debt in order to reduce the cost to its ratepayers,” Mr. Thiele said.
But it should not be allowed to extend the period of the debt repayment, he said.
“Debt has been one of the biggest contributors to high rates,” Mr. Thiele said. “It is imperative that this debt be paid off as soon as possible and not be extended any further,” he said.
