"Come hell or high water, we're going to get some kind of PSC review by the end of the year."
LIPA's revelations are heightening calls that LIPA trustees, appointed by the governor and top legislative leaders, be elected.
"Clearly something is wrong with this picture," said Legis. Edward Romaine (R-Center Moriches), who is now leading a drive to have trustees elected.
"The majority of the board is selected by people who live in New York City. They have very little understanding of the difficulty Long Islanders face," Romaine said.
Phone calls to most LIPA trustees who approved the projects either were not returned, or the board members declined to comment. "I really don't want to comment on that right now," said Harriet Gilliam, who acknowledged she had not attended "a couple of meetings" in recent years. Co-chair Howard Steinberg, who served on the board's finance committee, didn't return a reporter's call.
At least one LIPA trustee defended the process by which contracts are reviewed. "The review of the trustees, for as long as my tenure on the board, has been quite rigorous," Michael Fragin, a trustee appointed in 2006, wrote in an e-mail.
OVERSIGHT LOST
Revelations of $6 billion in previously undisclosed LIPA contract costs have renewed calls for legislation to scrutinize the utility's books, contracts and rate increases. An effort to have increased government oversight ended in September when Gov. David A. Paterson vetoed a bill. Here's what happened:
THE BILL Would have required LIPA to undergo regulatory review for rate increases above 2.5 percent.
WHY IT WAS
VETOED Paterson said it would cost the Public Service Commission more than $5 million annually to implement it, and the PSC "lacks the resources. " He also expressed concerns it would "impair and diminish" the value of financial agreements LIPA made with bondholders.
THE VOTE There was bipartisan support for the legislation after it
languished for years in Albany.
THE SIDES Critics wanted more oversight, pointing to billed "fuel surcharges. " LIPA lobbied against the bill, saying it would have increased borrowing costs and forced the hiring of staff to document increases for state regulators.
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