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LIPA Chairman Resigns

Lawyer Howard Steinberg, a trustee since 1999, now the fourth LIPA leader to leave after Superstorm Sandy.

Long Island Power Authority Chairman Howard Steinberg has resigned, effective immediately, leaving the beleaguered utility's board of trustees in danger of not being able to run the business.

According to several published reports, Steinberg sent Gov. Andrew Cuomo a letter Friday afternoon claiming that his full-time responsibilities in the private sector have made it impossible for him to devote the time needed to deal with the utility's challenges.

The move leaves LIPA's board of trustees with eight members, the smallest possible size it can operate as to be able to conduct business.

Steinberg, who was appointed to the unpaid position on LIPA's board in 1999 by Gov. George Pataki, joins chief operating officer Michael Hervey, customer relations vice president Bruce Germano and fellow trustee X. Cristofer Damianos as LIPA leaders who have resigned following Superstorm Sandy. The storm, which knocked out power to more than 1 million LIPA customers when it hit Oct. 29, exposed the utility to harsh scrutiny from the public and elected officials over its response and lack of preparation for the storm.

Much of that ire has been directed at the utility's leadership, which includes LIPA's management and trustees, for communication breakdowns that left customers in the dark about when their electricity would be restored.

The New York Times has also reported that a LIPA trustee meeting held by Steinberg four days before the monster storm pummeled the region was only 39 seconds long.

Cuomo also accused the utility of running out of electric poles in the middle of the recovery.

The governor, who has the power to appoint several trustees to the board, has publicly called the utility broken and has created a Moreland Commission to investigate LIPA and make recommendations on its future.

jared December 1, 2012 at 05:22 pm
this is what happens when the government gets involved in business.
now onto healthcare
Robert Demarco December 1, 2012 at 05:27 pm
I remember Richard Kessel when he started his career innocently enough as a "consumer advocate" and college professor, and frequent critic of LILCO. He parlayed these pastimes into his position at LIPA, where he became the fattest of fatcats. The so-called consumer advocate helped to create the problems that we have today.
HardWorkingJoe December 1, 2012 at 06:23 pm
Small wonder the CEO is leaving. What a thankless, unpaid job! At least two men have died bringing the power back on, was there even a moment of silence? With the attitude that Long Islanders had towards the LIPA/National Grid employees, how are they supposed to find Managers with compassionate concern for more than their own short term self interest, when the public they serve revels in being combative at every opportunity? Maybe we should let the power companies live beyond their means, to shut the bastards and bitches up, too.
Nassau Taxpayer December 1, 2012 at 06:30 pm
Unpaid? Boo hoo. We didn't even get what we paid for.
Nassau Taxpayer December 1, 2012 at 06:32 pm
Wikipedia "fat cat" and you get "Richie Kessel"
Peter Walsh December 1, 2012 at 06:32 pm
Large infrastructure organizations require massive amounts of capitol. Whether public or private, public funds become necessary in one form or another. Where public funds are necessary, political types are placed in leadership positions so various interest groups feel positively about the organization supported. As long as routine demands are made, the organization continues to run itself unnoticed. Then, along comes the perfect storm that washes away political scapegoats along with routine operations. New figureheads are appointed that continue to satisfy their respective political constituencies until something else out of the ordinary occurs.
Like it or not, we cannot afford a public utility that will function routinely in extraordinary conditions. We want one, but we don't want to pay for one. The best way to run a large organization is to promote competent experienced people from the inside. The problem is that those that are attracted to these positions spend more time promoting them-selves than tending to their tasks. Try appointment instead of application. If we had a perfect world we could overcome perfect storms. We don't have a perfect world. We are left with the practical, politically unsatisfying, need to promote the most experienced, competent individuals from inside the organization. Unfortunately, after the storm & public scrutiny passes, the selection criteria used to promote individuals defaults to the most popular or the most politically expedient.
Carol DiStasio December 1, 2012 at 06:45 pm
LIPA SHAMELESS. ALL ON THE BOARD FAILED US AND NEED TO BE PUT TO THE CURB! WHAT WE NEED IS A RELIABLE SYSTEM THAT DOES NOT TAKE WEEKS TO PUT US BACK ONLINE AFTER ANY STORM! WHAT ARE WE PAYING FOR? WE DEMAND IT AND GOVERNOR CUOMO PROMISED TO MAKE THE CHANGES.
John Gruber December 1, 2012 at 07:02 pm
"Long Island Power Authority Chairman Howard Steinberg has resigned, effective immediately, leaving the beleaguered utility's board of trustees in danger of not being able to run the business."
If they were able to run the business correctly from the start the board members would probably still be there...
John Gruber December 1, 2012 at 07:05 pm
they don't serve their self-interests because the public is combative, the public is combative BECAUSE they serve their self interests,
Louis December 1, 2012 at 07:08 pm
the only semi-reliable system is underground and even that was affected in NYC. in addition, are we, as the end users and thus , end-payers, ready to pay for these massive and costly overhaul?
we have to think realistically.
Louis December 1, 2012 at 07:10 pm
to me, realistically, we can only ask for a better manager of the current system that we have.
Nick Metrowsky December 1, 2012 at 07:16 pm
Well, our utility is city run and owned. We have the seconds lowest rates in Colorado. Our utility is part of the Platte River Authority Power Cooperative; a not for profit utility. What is different from LPA, is that money paid to the cooperative is put back into the system to make sure power is provide, lines are buried, generation and deliver system maintained, etc.
During my time, living in Longmont, Colorado, the total time the power has gone out, that I know about over the pat 15 years, has been less than 4 hours. We get powerful wind storms, summer storms and winter storms here, and some of the winds exceed what Long Island endured during Sandy. The problem is that all that money people pay to LIPA does not get re-invested in the utility. This explains why power poles just snapped, untrimmed trees came down on power lines and not protecting vital generation facilities from flooding. The blame really starts with LILCO, falls to LIPA and the New York State government. As fro fixing the problems; it will cost millions of dollars and Long Island will still end up with one of the highest utility rate sin the country. Long Island short start with forming a not fro profit utility and endure pain to bring their infrastructure into the 2010s and not keeping it in the 1950s.
Sal December 2, 2012 at 12:07 am
Not true Louis, Nick Metrowsky in a previous comment said it best: Take a portion of our rates and put it back into infrastructure upgrades. Let the governor and his father who crucified us with Shoreham pay for the bonds needed to be floated and keep their cronies away from our wallets. The political regimes in New York State, Nassau and Suffolk counties and even local towns like Oyster Bay and Venditto have their cronies all working on the payroll of LIPA, at a cost of millions annually (YOU CAN LOOK IT UP). National Grid is a British owned utility with a poor track record across the pond but is very shareholder friendly get rid of them immediately. While this storm was horrible, it was no different from any other storm, they had the same excuses each time. We shoud have raised our voices many years ago.
Simba December 2, 2012 at 01:52 am
This is what happens when you let kids waste their parents cash on a liberal art college education. We need thinkers and that mean engineers, not a bunch of airbags that can't fathom how to manage a power grid. These are the same bozos that destroyed our auto industry, killed longtime companies as Lehman, and let's not forget make it a priority to insure so called citizens that don't contribute any taxes and leave in trillions of debt. LIPA is just part of the much larger problem we face.
Nassau Taxpayer December 2, 2012 at 02:21 am
There is nothing wrong with a liberal arts education, per se.
it is however, incompetent and criminal to appoint not a single engineer to the LIPA board.
Nassau Taxpayer December 2, 2012 at 02:39 am
LIPA has been too busy overpaying for energy via out of the money hedging, Natgas particularly, and above-market service contracts with Grid. They are totally incompetent, from the Board on down to customer service.
Chris December 2, 2012 at 03:37 am
This year I am going to donate big time to our esteemed Governor. I really want a seat on LIPA's board.
Nassau Taxpayer December 2, 2012 at 04:09 am
What sort of skills can you bring? Are you a dietician, perhaps?
sadeto December 2, 2012 at 04:09 am
We really need to privatize the electric market on LI and let a business take care of it, like Enron. Government just isn't capable of running a utility like those private businesses are.
And by the way, Mr. Steinberg? Nice dye job.
Nassau Taxpayer December 2, 2012 at 04:16 am
ENRON? YGBSM. We've already been scammed for years.
Brian December 2, 2012 at 07:25 am
We need to privatize fire hydrants - The water they spew could be managed much more effectively by the private sector.
We should also privatize trees - The private sector will make sure a tree never falls!
Peconic Sunset December 2, 2012 at 01:15 pm
The board is responsible for reporting and recommendations, review of financials, that sort of thing. http://www.abo.ny.gov/abo/Chapter506of2009.pdf
Peter C. Walsh December 2, 2012 at 03:54 pm
We all have our opinions. The way to solve one problem is to persistently attend to it. That doesn't mean other problems won't arise that will need to be persistently attended to. That's okay. A persistent focus on preventing the disasterous impacts of Sandy will reduce the severity of the same problems that occurred. Persistent pressure is what is required. Blame has a limited shelf life. The focus needs to be on solutions and mitigation. I like the bond idea.
Nassau Taxpayer December 2, 2012 at 03:59 pm
I like the idea of immediately defaulting on Shoreham debt and directing all the former debt payments at a five-year plan to ruggedize and place underground the power distribution infrastructure.
Peconic Sunset December 2, 2012 at 04:42 pm
I agree we need to place the power distribution structure underground. I don't know the implications of defaulting on Shoreham.
Sal December 3, 2012 at 12:50 am
Well let's do what LIPA and our gov'ts do Default, print money, lower taxes etc. I say again let Albany pay us back. We have paid into this system forever and have not got our monies worth. We demand a state of the art distribution system for what we have paid, no further rate and tax hikes to solve issues, but instead real problem solving, imagination and ingenuity. You know, all the things every politician known to man has promised to do.
join.patch.# December 3, 2012 at 05:52 pm
Kool beans
bob gee December 6, 2012 at 12:27 am
when will como resign ?????????????
Brian Spear Construction December 6, 2012 at 02:16 am
Couldn't agree more!
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