As a new team of LIPA board members and staff negotiate a contract to extend PSEG Long Island’s contract to operate the electric grid, Quanta Services, the company LIPA’s internal team had recommended, has filed a formal and extensive request for LIPA documents surrounding the bidding process, Newsday has learned.

Among the 11 categories of documents and communications Quanta is seeking from LIPA are all communications around the cancellation of the bidding process; communications around the board’s decision to continue with PSEG Long Island; all bidding documents, communications with journalists, and "all records and communications regarding any actual or alleged violation of ethics obligations or procurement rules in respect of the [request for proposals] and any investigation into same."

Quanta, in a statement, said its information request from LIPA "reflects our strong commitment to explore all available options and potential next steps to ensure the integrity" of the LIPA bidding process.

"All those who care about Long Island’s energy future, especially its 1.2 million customers, deserve to know the truth about why the LIPA Board did not select the operator deemed as the best choice by its own panel of experts," Quanta said, particularly "given the serious questions and concerns raised" since the board rejected the recommendation.

Quanta’s document request, from the Manhattan office of outside law firm Steptoe LLP, is the company’s latest in a series of challenges to LIPA and its board, along with its appeal for intervention by Gov. Kathy Hochul. Quanta has raised questions about the process and previously requested the public release of bidding documents after it lost the bid in April.

Quanta said neither LIPA nor Hochul has replied to any of its letters or prior requests to release all bidding documents.

A LIPA spokeswoman declined to comment. LIPA trustees, who have since voted to negotiate an extension of PSEG's existing contract, said they asserted their independence in rejecting Quanta's bid after considerable internal debate and fact finding. 

In recent months, Newsday has reported that the state inspector general is investigating the utility, and that activists have urged the state attorney general to also look into irregularities. Last week, the state Attorney General's Office said it "determined these claims fall squarely within the Inspector General’s purview." Newsday has also reported that at least one person close to the procurement has initiated an ethics claim at LIPA. 

Newsday earlier this month filed a Freedom of Information Law request for specific documents related to the PSEG/Quanta bids, including scoring sheets used to determine the highest bidder. The request was largely rejected last week, LIPA said, because the documents "contain subjective opinions of the Selection Committee," in contrast to "statistical or factual tabulations or data." Only a previously public document, explaining why Quanta should be awarded the contract, was released. 

LIPA earlier this month appointed a team of existing management staff and board members to negotiate an extension of PSEG Long Island’s contract, which expires at year's end.

LIPA noted that the new team leading the negotiations "will initiate the negotiation process with PSEG immediately to ensure uninterrupted, reliable, and affordable service for LIPA customers, which remains LIPA’s top priority."

The new team does not include the senior officials who previously recommended Quanta and who noted that PSEG’s bid did not meet minimum bid requirements. Those officials were interim CEO John Rhodes, senior vice president Billy Raley and acting chief operating officer Werner Schweiger.

Rhodes is expected to step down as CEO in the coming days or weeks as the board prepares to vote on whether Carrie Meek Gallagher, the current top regulator of LIPA, as director of the Long Island office of the Department of Public Service, will be the new LIPA chief. Neither LIPA nor DPS would answer questions about an appointment.

The new team negotiating with PSEG includes board chairwoman Tracey Edwards and new board member Anthony LaPinta, a criminal defense attorney who previously served as counsel to the Suffolk County Democratic Committee. Newsday last month reported that a super PAC funded by PSEG has contributed more than $30,000 to the Suffolk County Democratic Committee.

LaPinta in an email to Newsday noted that his new role on the PSEG-contract committee came after he sought and received two conflict-of-interest and advisory opinions tied to his prior role as counsel to the Suffolk committee. Asked on what grounds the opinions were sought, and if they were tied to PSEG donations to the committee, LaPinta responded, "All grounds."

LIPA in the past has left procurement negotiations and other major decisions at LIPA to executive and managerial staff. Trustees have sometimes debated, but almost exclusively accepted the recommendations of LIPA staff, former trustees said.

"I think it’s bad governance" for board members to be on a negotiating committee, said former longtime LIPA trustee Jeff Greenfield. "The professional staff should negotiate and the board should review and sit in judgment in its oversight role."