New York Attorney General Approves Contract Extension for LIPA and PSEG
New York Attorney General Letitia James has granted conditional approval for a contract extension between LIPA and PSEG Long Island. This approval follows allegations of procurement irregularities and leaves the state comptroller as the final step for the extension’s authorization.
Contract Approval Amid Allegations
The contract extension has been controversial due to alleged discrepancies in the bidding process. Quanta Services, another bidder, filed a lawsuit claiming the process was unfair. Despite Quanta’s strong bid recommendation from an internal LIPA committee, PSEG won the trustee vote 6-1.
Pending Steps and Investigations
The state comptroller’s approval remains the last hurdle for the contract extension to proceed. Meanwhile, the inspector general has been investigating since spring, following ethics claims and testimonies about the bidding process.
Background and Legal Challenges
LIPA is seeking to dismiss Quanta’s lawsuit after a court victory denying Quanta’s temporary order to delay the PSEG award. LIPA argues that Quanta’s legal filings are untimely, given the four-month statute of limitations, claiming the board’s decision on April 30 negated Quanta’s bid.
Additional Concerns and Testimonies
Concerns about PSEG’s lobbying were raised over a year ago by activists and brought to James’ office but were not pursued due to jurisdictional concerns. Additionally, testimony from former LIPA employees and board members indicates internal pressure to alter bidding evaluations against Quanta.
Quanta believes that LIPA has obstructed its access to pivotal documents critical for transparent resolution. The court’s decisions in the coming weeks will determine the future course of this contract and whether Quanta can break through LIPA’s legal defenses.
- The contract extension between LIPA and PSEG has garnered significant legal and public scrutiny.
- Quanta Services claims the bidding process was not conducted fairly.
- The contract is pending final approval from the state comptroller.
- Investigations are probing into alleged ethics violations in the bidding process.
Emegypt will continue to provide updates as the situation progresses.
