The Long Island Power Authority's board of trustees made an unexpected move by rejecting a recommendation to award Quanta Services of Houston the contract to manage the electric grid.
In a statement, PSEG Long Island Director of Communications Kathryn Tazel said PSEG Long Island looks forward to hearing about next steps in the request for proposals process.
"PSEG Long Island is proud of its successful partnership with LIPA since 2014 transforming the electric grid to become the #1 overhead electric service provider in New York State in both reliability and customer satisfaction," the statement read.
The board voted 6-1, with two members abstaining, to turn down the recommendation from a special LIPA committee, which included Acting CEO John Rhodes and two senior officials.
Rhodes presented the committee's strong endorsement of Quanta, highlighting the company's service record, including its work in Puerto Rico despite ongoing service issues there.
Board chairwoman Tracey Edwards led the opposition, citing concerns over Quanta’s lack of experience in fully managing a utility. Edwards argued that the company didn’t have the comprehensive expertise needed to take on the responsibility.
PSEG Long Island, which has managed LIPA’s grid for the past decade, also submitted a bid to continue its role. According to committee documents, Quanta’s proposal was considered the best option for delivering value to customers. Despite this, the board voted to reject it, raising questions about the future direction of LIPA’s grid management.