Long Island Power Authority to Buy Long Island Lighting Co's Assets

Date: February 26, 1996

Long Island Power Authority has proposed issuing $4.5 billion in municipal bonds to buy Long Island Lighting Company's (LILCO) transmission and generating capabilities as well as its natural gas operations. Created in 1986 to find a way to lower electricity for residents and businesses on Long Island, LIPA estaimates that the proposed $4.5 billion tax-exempt bond issue to buy the assets of the Long Island Lighting Co. (LILCO) would probably be done in two sales, according to James Gill, chairman of LIPA..

LILCO, which charges the highest electric rates in the continental United States, said it needs additional information to evaluate the proposal. New York Governor George Pataki has said he will use the state’s powers of eminent domain, if necessary, to effect the sale.

Gill said that LIPA has been receiving lots of interest from generating companies. Generating companies can simply retrofit LILCO's generating facilities and use them in the deregulated market.