PSEG Long Island to Continue Serving Long Island and the Rockaways for the Next Five Years

Rhea-AI Summary

PSEG (NYSE:PEG) has secured a five-year contract extension from the Long Island Power Authority (LIPA) Board of Trustees to continue operating the electric grid on Long Island and in the Rockaways. The extension will run from January 1, 2026, through December 31, 2030, pending approval from New York State officials.

Since beginning operations in 2014, PSEG Long Island has achieved significant improvements, including a 35% reduction in outage frequency, 21% reduction in outage duration, and a 75% improvement in workforce safety. The company has become the top overhead electric service provider in New York State for reliability and customer satisfaction, maintaining the lowest rate increases compared to regional peers.

Positive

• 35% reduction in frequency of outages (SAIFI) and 21% reduction in duration of outages (SAIDI)
• 75% improvement in workforce safety metrics
• Achieved lowest DPS Complaint Rate for Electric Utilities in NY State for 9 out of 11 years
• Secured lowest rate increases compared to regional peers
• Ranked as Most Improved in J.D. Power Customer Satisfaction scores nationally

Negative

• None.

Insights

Utilities Industry Analyst

PSEG secures key 5-year contract extension with LIPA, ensuring continued revenue stability from its Long Island operations.

PSEG has secured a significant operational extension that provides important revenue visibility and continuity for the company. The Long Island Power Authority's decision to extend PSEG Long Island's contract for an additional five years (2026-2030) represents a vote of confidence in the company's operational performance over the past 12 years.

This extension is strategically valuable as it maintains PSEG's foothold in the critical New York market without requiring a competitive rebidding process. The metrics shared in the announcement demonstrate meaningful operational improvements under PSEG's management, including a 35% reduction in outage frequency, 21% decrease in outage duration, and 63% reduction in momentary outages.

For investors, this extension provides predictable cash flow from the Long Island operation through 2030. While the exact financial terms aren't disclosed, the contract represents a substantial business segment for PSEG. The company's achievement of being the top overhead electric service provider in New York for reliability and customer satisfaction strengthens its position for future contract renewals and potential expansions.

The noted improvements in workforce safety (over 75% improvement in OSHA recordable incidents) and the lowest rate increases compared to regional peers suggest PSEG has achieved operational efficiencies that should translate to continued profitability in this service area. The extension still requires approval from New York State's Comptroller and Attorney General, though this appears to be a procedural step rather than a significant hurdle.

LIPA Board of Trustees awards PSEG Long Island extension of existing contract for five years continuing the successful partnership for the last 12 years.

NEWARK, N.J., Sept. 25, 2025 /PRNewswire/ -- The Long Island Power Authority Board of Trustees has awarded PSEG Long Island an extension on the existing contract to continue to operate the electric grid on Long Island and in the Rockaways for the next five years.

PSEG Long Island, a subsidiary of PSEG, has operated the electric grid on Long Island and in the Rockaways on behalf of LIPA since 2014. This current contract was set to expire in December 2025. The operations services agreement between LIPA and PSEG Long Island will be extended beginning Jan. 1, 2026, and run through Dec. 31, 2030.

"PSEG is proud to continue its successful partnership with LIPA for the next five years and continue to provide outstanding electric service on Long Island and in the Rockaways," said Ralph LaRossa, chair of the board, president and CEO of PSEG. "Since 2014, PSEG Long Island has become the No. 1 overhead electric service provider in the State of New York in reliability and customer satisfaction."

Now that the LIPA Board of Trustees has voted, the contract extension will need to be approved by the New York State Comptroller and the New York State Attorney General.

Since 2014, PSEG Long Island has:

• Improved reliability with the reduction in the frequency of outages by 35% (SAIFI), the reduction in the duration of outages by 21% (SAIDI) and the reduction in the frequency of momentary outages by 63% (MAIFI).
• Improved the safety of its workforce by over 75% (as measured by OSHA Recordable Incident Rate).
• Lowest DPS Complaint Rate for Electric and Combined Utilities in New York State for nine out of the last 11 years.
• Most Improved in J.D. Power Residential and Business Customer Satisfaction scores in the nation.
• The lowest rate increases for customers when compared to regional peers.

PSEG is looking forward to continuing the successful partnership with LIPA over the next five years and continuing to improve reliability and customer satisfaction on Long Island and in the Rockaways.

About PSEG
Public Service Enterprise Group (PSEG) (NYSE: PEG) is a predominantly regulated infrastructure company focused on a clean energy future. Guided by its Powering Progress vision, PSEG aims to power a future where people use less energy, and it's cleaner, safer and delivered more reliably than ever. With a continued focus on sustainability, PSEG has appeared on the Dow Jones Sustainability North America Index for 17 consecutive years. PSEG is included on the 2023-2024 list of U.S. News' Best Companies to Work For. PSEG's businesses include Public Service Electric and Gas Co. (PSE&G), PSEG Power and PSEG Long Island (https://corporate.pseg.com).

Forward-Looking Statements 

The statements contained in this press release that are not purely historical are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to management. Factors that may cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are discussed in our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission (SEC), and available on our website: https://investor.pseg.com. All of the forward-looking statements made in this press release are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by management will be realized or even if realized, will have the expected consequences to, or effects on, us or our business, prospects, financial condition, results of operations or cash flows. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in this press release apply only as of the date hereof. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even in light of new information or future events, unless otherwise required by applicable securities laws.

CONTACTS:
Investor Relations
pseg-investorrelations@pseg.com

Media Relations
DL-ENT-pseg.communications@pseg.com

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SOURCE PSEG

FAQ

What is the duration of PSEG Long Island's new contract extension with LIPA?

PSEG Long Island's contract extension will run for five years, from January 1, 2026, through December 31, 2030.

What improvements has PSEG Long Island (NYSE:PEG) achieved in service reliability since 2014?

Since 2014, PSEG Long Island has reduced outage frequency by 35%, outage duration by 21%, and momentary outages by 63%.

How has PSEG Long Island's safety record improved since taking over operations?

PSEG Long Island has improved workforce safety by over 75% as measured by OSHA Recordable Incident Rate.

What regulatory approvals are needed for PSEG's contract extension with LIPA?

The contract extension requires approval from the New York State Comptroller and the New York State Attorney General.

How has PSEG Long Island's customer satisfaction performance compared to other utilities?

PSEG Long Island has achieved the lowest DPS Complaint Rate for Electric Utilities in NY State for 9 out of 11 years and was ranked as Most Improved in J.D. Power Customer Satisfaction scores nationally.