NEWARK, N.J., Dec. 15, 2011 /PRNewswire/ -- PSEG Long Island LLC, a subsidiary of Public Service Enterprise Group Incorporated (PSEG), today was selected by the Long Island Power Authority (LIPA) to manage LIPA's electric transmission and distribution system. The contract includes targets to improve customer satisfaction and provide safe and reliable service for 1.1 million LIPA customers.
PSEG Long Island was one of three finalists considered for the LIPA management services contract, which will begin Jan. 1, 2014 after a two-year transition period and run for 10 years.
"Today's decision by the LIPA Board of Trustees is welcome news," said Scott Jennings, PSEG vice president of development. "We are committed to serving LIPA in meeting the needs of its residential and business customers, as well as becoming active members of the Long Island community."
"In accepting our proposal, LIPA recognized the depth of PSEG's experience and its ability to assist LIPA in managing a safe, highly reliable electric system on behalf of its customers and in improving customer service," Jennings said. "PSEG also has a strong track record in partnering with the communities we serve. Together with our experienced partner, Lockheed Martin, we look forward to working with LIPA and the employees dedicated to LIPA's service territory to bring increased customer satisfaction and reliable service to Long Island customers."
Under the agreement, PSEG Long Island will be responsible for managing electric transmission and distribution operations, customer services, LIPA's 18 percent ownership of Nine Mile Point 2 Nuclear Station in upstate New York, and related functions. Lockheed Martin, a subcontractor to PSEG Long Island, will provide transition management, information technology, corporate business, energy efficiency services and other services.
"Operating a utility safely and reliably is our core strength and one in which we take great pride," said Ralph LaRossa, president and COO of PSE&G, New Jersey's largest and oldest electric and gas utility. "The LIPA services agreement recognizes that commitment to excellence, and will enable us to share best management and operational practices with LIPA and their customers." PSE&G, a subsidiary of PSEG, has been recognized as the most reliable utility in the nation and in the Mid-Atlantic States.
As part of the management contract, PSEG Long Island will be expected to develop and implement a number of operational improvements to provide safe and reliable service, increase customer satisfaction and manage the operational and maintenance costs of the utility. During the two-year transition, PSEG and Lockheed Martin will appoint dedicated management teams whose employees will live and work on Long Island and prepare to transition the management of LIPA's utility services from National Grid.
Please visit www.pseg.com/lipa for more information.
The statements contained in this communication about our and our subsidiaries' future performance, including, without limitation, future revenues, earnings, strategies, prospects, consequences and all other statements that are not purely historical, are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance they will be achieved. There are a number of risks and uncertainties that could cause actual results to differ materially from what may actually occur. A discussion of some of these risks and uncertainties is contained 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). These documents address in further detail our business, industry issues and other factors that could cause actual results to differ materially from those indicated in this communication. Forward looking statements made in this communication only apply as of this date. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even if our internal estimates change, unless otherwise required by applicable securities laws.
Public Service Enterprise Group (NYSE:PEG) is a publicly traded diversified energy company with annual revenues of more than $12 billion, and three principal subsidiaries: PSEG Power, Public Service Electric and Gas Company (PSE&G) and PSEG Energy Holdings.
Headquartered in Bethesda, Md., Lockheed Martin (NYSE:LMT) is a global security company that employs about 126,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation's 2010 sales from continuing operations were $45.8 billion.
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SOURCE Public Service Enterprise Group (PSEG)