LIPA Picks PSE&G To Run Electric Grid

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.

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