UNIONDALE, N.Y. (AP) — The Long Island Power Authority says it has chosen a new company to manage the region’s electric grid.

The utility has awarded a $3.3 billion contract to PSE&G of New Jersey. The 10-year deal takes effect in January 2014.

The vote by LIPA’s trustees on Thursday replaces its previous agreement with National Grid.

Newsday reports that trustees also unanimously approved a $3.7-billion budget for 2012. It includes a 1.5 percent rate hike. That means the average residential customer will pay $2.20 more each month.

National Grid said it would help LIPA with the transition.

Sound off in our comments section below…

(Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

More From CBS New York

Download Weather App

Watch & Listen LIVE