By Karl Grossman

PSEG, a Newark, New Jersey-based utility—long deeply involved in nuclear power—was foisted on Long Island, New York to be THE utility on the island by New York Governor Andrew Cuomo.

In 1985, a Long Island Power Authority or LIPA was created and was key to stopping plans by the island’s utility at the time, the Long Island Lighting Company, to open its Shoreham nuclear power plant and go on and build 7 to 11 nuclear plants on Long Island. The notion, in the parlance of nuclear promoters then, was to turn Long Island into a “nuclear park.”

At the start of the push for nuclear power in the U.S., the federal government, manipulated by these promoters, preempted states and localities on most issues involving atomic energy. But on Long Island it was realized that New York State could create a public power entity and use the power of eminent domain to threaten LILCO’s corporate existence if it persisted with Shoreham and its other nuclear projects. Eminent domain is the centuries-old right governments have to expropriate private property as long as they pay compensation.

The Long Island Power Act of 1985 established LIPA with the power to acquire LILCO’s assets or its then undervalued stock.

Moreover, LIPA would be modeled after the Sacramento Municipal Utility District or SMUD, a public power entity with elected trustees that for decades has democratically determined the energy future of its 900-square mile service area in northern California.

With the strong support of Andrew Cuomo’s father and predecessor as governor, Mario Cuomo, LIPA was able to stop Shoreham and LILCO’s other proposed nuclear plants. LILCO turned over the completed Shoreham plant to LIPA for $1 for decommissioning as a nuclear facility. The plant had undergone trouble-riddled bouts of low-power testing. Long Island became nuclear power plant-free. And LIPA became Long Island’s utility. LILCO faded from the scene.

But Mario Cuomo promptly undermined Long Island having a democratically-run public power entity like SMUD. He suspended, soon after LIPA’s establishment, having its trustees elected—although that was central to the LIPA vision. Instead, he arranged for them to be appointed by the governor, State Assembly speaker and State Senate majority leader.

Andrew Cuomo has been highly critical of LIPA in his years as governor and in 2013 he decimated LIPA in favor of having PSEG come to Long Island and take over most of LIPA’s functions.

Cuomo was able to get a majority of state lawmakers from Long Island to vote for what he claimed would be LIPA “reform” by permitting video slot casinos being set up on the island. The selling point was that they would provide revenue for financially-troubled Nassau and Suffolk County governments and their bankrupt Off-Track Betting operations, both political patronage troughs. This ploy turned out to be a big misstep in itself with now years of public opposition on Long Island to the proposed casinos.

Meanwhile, PSEG has had a very sorry record as THE Long Island utility.

This bad record is continuing with intensity.

Last month, for example, PSEG took a blow at …read more

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