LIPA sues PSEG over tropical storm outage fiasco

MINEOLA, N.Y. - A "grossly negligent performance" in response to this past summer's Tropical Storm Isaias is the foundation of an at least $70 million lawsuit.

The Long Island Power Authority on Wednesday filed the lawsuit against operator PSEG Long Island.

"They can't get their own provider, PSEG, to do their job so they're saying to a judge, 'Hey make them fix their IT system so they have a working electric grid and can communicate with ratepayers,'" state Sen. Todd Kaminsky said.

The suit, filed in state Supreme Court in Mineola, accuses PSEG of breaching its contract. LIPA said PSEG neglected to have a continuity plan in place that would've provided an alternative when critical systems failed.

More than half a million customers were left in the dark for up to eight days during one of the hottest weeks of summer.

• PSEG management wasn't prepared for Isaias, task force says

"I want to make sure the money goes back to the ratepayers rather than spend it on higher salaries and corporate," state Sen. Jim Gaughran said. "It should go right back to the people who pay the bills."

Gov. Andrew Cuomo said PSEG's performance was inexcusable.

LIPA said it is reviewing its legal, contractual and termination options. CEO Tom Falcone said PSEG has collected nearly half a billion dollars from Long Island customers over the past seven years and must immediately fix these failed systems. 

• Lawmakers grill PSEG Long Island

But PSEG told FOX 5 NY in a statement that it is working to address recommendations and remains committed to being the service provider of choice for LIPA. Once PSEG is served the papers, it has 20 days to submit a response followed by the motion and discovery process.

A trial date hasn't been set.