The Long Island Power Authority (LIPA) has issued a Request for Proposals (RFP) for Utility Services Management (USM). LIPA is seeking proposals to support the operation, maintenance, repair and expansion of its electric transmission and distribution business. The contract for utility services management between LIPA and the current service provider, National Grid, expires on Dec. 31, 2013.

This is the first time that this contract is being solicited on a competitive basis since LIPA acquired the Long Island electric system in 1998. The new USM agreement is expected to be a 10-year contract.

“The electric energy industry is changing rapidly, and this procurement creates an opportunity to assess the market,” said LIPA President and CEO Kevin S. Law. “The issuance of this RFP will provide for a competitive and transparent process. LIPA desires to make a decision that will provide the best value to LIPA’s customers, consistent with our mission to provide highly reliable, economical electric service.”

This RFP is designed to provide LIPA with all of the services necessary to conduct its operations following expiration of the current contract. In considering this undertaking, LIPA has established the following objectives:

• With respect to the selected service provider:
  
  • Provide superior customer service.
  • Align the service provider’s goals with LIPA’s goals.
  • Keep pace with a changing business environment.
  • Provide for transparency in operations and costs.
  • Provide value to LIPA’s customers through the services delivered.
• Sustain continuity of the workforce

“Putting the USM contract out to bid is a major victory for ratepayers," said Assemblyman Marc S. Alessi. “I have been pushing for a competitive procurement since I first came into office in 2005 and advocated that the State Comptroller encourage LIPA to explore its options. I applaud LIPA for now taking this critical step. Competition is in the best interest of the ratepayers and will ensure they receive the most efficient and reliable service.”

The RFP requires that proposals be submitted to LIPA by August 24, 2010. After thorough qualitative and quantitative analysis, LIPA anticipates selection of a winning proposer in the second half of 2011.

To facilitate communications between LIPA and potential proposers, LIPA will post the RFP and other information involving the RFP on a special web site at http://www.lipa-usm-rfp.org/. Throughout the RFP process, potential proposers are encouraged to pose questions relevant to the RFP through the dedicated web site. LIPA will post responses to questions and provide other information as appropriate.