PSEG LI misses another deadline to migrate computer systems from New Jersey to the Island

PSEG Long Island has again missed a deadline for migrating LIPA's computer systems from New Jersey to Long Island, drawing the ire of LIPA trustees at a hearing Wednesday.

PSEG officials had prepared a presentation to explain the delays, but LIPA chairwoman Tracey Edwards nixed it, ordering the company to come back with more information at the next board meeting in December. PSEG operates the Long Island grid under an $80 million annual contract with the Long Island Power Authority that expires at the end of 2025.

The computer migration was initiated in 2022 following PSEG's acknowledged failures in responding to Tropical Storm Isaias. The project involves shifting control of dozens of applications critical to running the utility to Long Island.

PSEG is scheduled to complete the computer migration just as its contract expires. Last month acting LIPA chief executive John Rhodes told a business group the contract "could well be" awarded to PSEG, which is in the running and lobbied staunchly against an unsuccessful state bill that would have had LIPA instead run the grid itself.

The first and largest of four blocks of computer applications set for migration was scheduled to be completed by this month, but PSEG now says it won't be ready until February.

"To miss the deadline for November is really just unacceptable," said Edwards, noting the board had set "clear goals" about the work in 2022. "I'm frustrated and I'm sure my fellow trustees are just as frustrated." She insisted that the costs for the delays not be borne by ratepayers.

Edwards also expressed concern about future delays. "The issue is, are you going to make February?" she said. "And are you going to make the end of year for 2025? That is what is critical."

Newsday in June reported LIPA ratepayers faced $5.3 million in unexpected costs from the $68 million migration project after a series of missteps, including an inability to do background checks on a large number of outside tech workers needed for the project.

LIPA in the past has said separation is strategic because if a new grid contractor, or LIPA, were ever to take over running the grid, it would have to deal with PSEG in New Jersey on computer issues.

PSEG didn't comment on the delay at the meeting. Asked to comment afterward, interim PSEG Long Island president Dave Lyons said, "We were prepared to do an update and we'll give an update next month." Asked to explain what happened, he said, "No comment."

PSEG spokeswoman Katy Tatzel, in an email, said the company "is working with LIPA to implement system separation quickly and effectively."

At the board meeting, other trustees expressed frustration at the delay and suggested there could be consequences.

"There's a thing called your contract coming up and you're one of the players that are going to try to get the service provider contract and you're not giving the ratepayers anything to work with," trustee Drew Biondo told PSEG officials, pointing out years of delays he'd already witnessed or been briefed on. "If you're missing all of this, what else are you missing that we don't know about?"

If PSEG didn't fix the problem, Biondo said he'd vote "nay" in awarding PSEG the new contract.

Trustee Vanessa Baird-Streeter called the delays "a major cause for concern," noting PSEG's prior commitment to advance the work on time "wasn't upheld."

"That's problematic for us as board members, it's problematic for the ratepayers and it's problematic for the processes that need to unfold in the next year," she said.

The delays come as LIPA and PSEG agreed to reduce to 52 the number of performance metrics on which PSEG will receive around $23.7 million in compensation next year. The figure was already reduced from 91 metrics in 2023 to 61 this year.

Ratepayer Fred Harrison of Merrick questioned the move in public comments during the meeting.

"To speak about reducing oversight when we know full well that the systemic problem overrides good will and good intentions to me makes no sense," he said.

Officials noted that many of the reduced metrics related to specific projects that had been completed, but a full list of the metrics, including which ones were eliminated, wasn't available.

By Mark Harrington

mark.harrington@newsday.comMHarringtonNews

Mark Harrington, a Newsday reporter since 1999, covers energy, wineries, Indian affairs and fisheries.