Hochul nears new LIPA board appointments that could affect the utility's future

Gov. Kathy Hochul’s office is examining a slate of potential candidates for the LIPA board that could include former officials of the authority in a move that could have wider implications for LIPA's future direction.

A spokesman for Hochul confirmed the governor’s office routinely “reviews candidates for vacancies on all state boards and agencies," but emphasized that as of Thursday it had "not finalized appointees for the LIPA board.”

Newsday earlier this month reported that a review on the governor’s appointees had advanced for the first time since Hochul took office in 2021. Hochul gets five appointees to the board. Appointees of former Gov. Andrew M. Cuomo remain in place despite expired terms. 

People familiar with the situation say top among those being considered for board seats are Kevin Law, a former LIPA chairman and chief executive who also served as president and CEO of the Long Island Association, a business group. Law, who currently serves as executive vice president for real-estate company Tritec Real Estate Co., also serves as chairman of Empire State Development's board. 

Two other potential candidates for the board, according to the sources, are former LIPA general counsel Lynda Nicolino and former board member Larry Belinsky. 

Nicolino now serves as chief legal counsel for Bethpage Federal Credit Union, while Belinsky is managing director at financial firm Frasca & Associates. They either couldn't be reached or declined comment. 

Anticipated changes to the LIPA board come as a state commission has been reviewing steps needed to transition LIPA to a fully public authority, an effort that stalled during this year's legislative session. Hearings on the effort are slated for September, and a final report to the State Legislature to craft legislation is due out before year's end.

LIPA on Thursday said it had canceled its July board meeting because of a lack of a quorum. 

Last year, Hochul approved a bill passed by the legislature that created the commission to study the prospect of a fully public LIPA, which would remove PSEG Long Island as the contractor overseeing the grid and instead put LIPA in charge.

A new board of Hochul appointees could potentially alter the direction of the municipalization effort if, for instance, Hochul’s office determines that she wants her own review of all of LIPA’s options. Some, including former KeySpan chief executive Robert Catell, have been pushing for LIPA to be sold outright to a public company, while PSEG has been lobbying to keep the existing public-private partnership, which brings it up to $80 million a year in management fees alone. PSEG's contract expires in 2025.

Lisa Tyson, executive director of activist group the Long Island Progressive Coalition and a co-chair of the LIPA commission’s advisory council, expressed concern that a potential Hochul shakeup of the LIPA board could provide PSEG with an opening to derail the fully public LIPA, which her group favors. 

"It's not a good look for Gov. Hochul if she caves to … PSEG and lets it prevail on her to change the LIPA board's leadership, which has called PSEG out for unacceptable performance,” she said. 

PSEG didn't respond to a request for comment at press time. 

Tyson noted that PSEG "simply ignored the LIPA trustees last year when they required [PSEG] to cease all lobbying immediately." Newsday has reported PSEG in the past three years has grown its lobbying spending to more than $200,000 a year, and its own officials, including vice president of external affairs Christopher Hahn, have participated in that lobbying.

CORRECTION: Former KeySpan chief executive Robert Catell’s name was misspelled in an earlier version of this story.

By Mark Harrington

mark.harrington@newsday.comMHarringtonNews

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