The Long Island Power Authority was created by an Act of the New York State Legislature in 1986 and acquired the electric transmission and distribution system of the Long Island Lighting Company on May 28, 1998, immediately lowering electric rates for customer-owners by more than 20 percent.

As result of the LIPA Reform Act of 2013, the Authority utilizes a public-private partnership business model and contracts with PSEG Long Island, a subsidiary of Public Service Enterprise Group Incorporated, one of the nation’s largest electric utilities, to operate LIPA’s electric system under a 12-year contract. LIPA’s public-private business model continues to deliver the advantages of public power to customers, including LIPA’s not-for-profit status, access to low-cost financing, and dedication to Long Island and the Rockaways.