The Long Island Power Authority has received all necessary approvals for a new operating services agreement with PSEG Long Island, LLC, an indirect subsidiary of Public Service Enterprise Group (PSEG). The transition services and operating services agreements, approved by the New York State Attorney General, the Office of the State Comptroller, and the Internal Revenue Service, are part of LIPA's move to an improved business model that will enhance the quality of customer service, provide long-term workforce stability and allow LIPA to more effectively manage costs.
Under the new model and contract, PSEG will operate a dedicated business unit on Long Island, tentatively called "ServCo," that will provide services exclusively to LIPA and its 1.1 million electric customers. PSEG, a leading New Jersey-based energy provider with more than 100 years of experience in electric energy generation, transmission and distribution, had been selected by LIPA's Board of Trustees to manage the operations of the electric grid on Long Island for 10 years beginning Jan. 1, 2014 when the current contract with National Grid expires.
LIPA and PSEG announced today that David Daly, a 25-year veteran of the company's utility subsidiary, has been appointed to lead the transition during the next 18 months. Daly currently serves as vice president-asset management and centralized services at Public Service Electric and Gas Co. (PSE&G), New Jersey's largest and oldest utility serving 2.2 million electric customers and 1.8 million gas customers.
"I am pleased with the progress of the transition," said LIPA Chief Operating Officer Michael Hervey. "In addition, we have great confidence in Dave Daly to lead LIPA and PSEG to the finish line and beyond, ensuring a smooth transition for our customers, enhancing customer satisfaction and retaining and creating jobs on Long Island."
In announcing Daly's appointment, Ralph LaRossa, PSE&G president and COO, said, "Dave Daly brings more than significant utility operations experience to this transition. He understands what it takes to plan and implement large-scale initiatives. Together with our partner Lockheed Martin, Dave and the transition team will ensure that at the end of the transition, we will be able to keep our commitments to employees, produce customer bills and, of course, keep the lights on for more than a million Long Island customers."
Since joining PSE&G, Daly has held a variety of positions in utility operations and support services, including vice president of energy acquisition and technology, where he led the implementation of the cutover to a new SAP-based customer information system. He also served as electric system division manager, director of utility operations services, director of corporate strategy and general manager of transmission planning.
Earlier in this career, Daly was a senior consultant at Metzler & Associates, as well as UMS Group, where he focused on performance management and benchmarking, process reengineering and competitive strategy development. He has an electrical engineering degree from the State University of New York Maritime College, and a Master of Business Administration from Rutgers University.
"The next 18 months will be challenging as we prepare to manage the LIPA system beginning in 2014," Daly said. "I welcome this opportunity to work with LIPA and National Grid to make sure that the transition to PSEG will be as seamless as possible."
As part of the transition, LIPA, PSEG and National Grid have identified team transition leads that have been meeting regularly to ensure a smooth transition of electric service for LIPA customers as well as for those employees who will be part of the new "ServCo" unit. These transition leads and their teams are already identifying and gathering information to help make critical decisions about facilities, IT systems, staffing and employee benefits.
LIPA and PSEG have also engaged Long Island's various stakeholders, including government officials, business leaders and other interested parties, to keep them informed as the transition progresses.