PSE&G gets $80M deal to run Long Island power grid after official, wife’s secret stocks sink bidding process

In a surprising turn of events, Long Island Power Authority (LIPA) awarded an $80 million-a-year extension to PSE&G after halting the competitive bidding process due to financial ties between LIPA member John Rhodes and Quanta Services, the potential replacement for PSE&G. Rhodes and his wife had ownership of up to $120,000 in Quanta Services stocks, leading to concerns about bias in the selection process.

Initially, Rhodes recommended Quanta Services over PSE&G citing better safety records and customer satisfaction scores. However, LIPA board members raised doubts, particularly referencing Quanta’s management issues with Puerto Rico’s electric grid. Upon discovering Rhodes’ undisclosed stocks, the board voted 6-1 against Quanta’s selection, prompting a decision to extend PSE&G’s contract instead.

The selection process was ultimately scrapped, and the length of the contract extension for PSE&G has yet to be determined. PSE&G has managed Long Island’s power grid since 2014, with its performance coming under scrutiny, notably during Tropical Storm Isaias in 2020. An amended agreement in 2021 linked a portion of PSE&G’s compensation to performance indicators such as reliability and customer satisfaction.