Ali Mohammed, a financial industry executive, has been appointed to Long Island Power Authority as one of nine unpaid board members charged with overseeing the quasi-governmental agency.
The appointment comes at a pivotal time and in the wake of controversy. The agency has come under public attack after it filed tax lawsuits against Long Island communities in an effort to save money. And as the state transitions to a clean-energy economy, state leaders are looking toward Mohammed and the board for new direction.
“One of my first priorities as a LIPA trustee will be to end LIPA’s practice of reckless tax certiorari lawsuits against communities and school districts,” Mohammed said in a statement. “LIPA must immediately cease all litigation.”, n
Mohammed’s background includes 20 years of experience working in senior leadership roles for major financial organizations, such as JPMorgan Chase & Co., Goldman Sachs and TD Ameritrade.
He’s been involved in restructuring Fortune 500 companies to become more efficient, while lowering costs, according to press releases. The technology sector is also one of his areas of expertise. In June, Mohammed joined Broadridge, a global financial industry analytics company, which has 33 U.S. offices, including one in Lake Success.
“I will work to modernize a board so desperately in need of good governance reforms to ensure LIPA finally starts serving ratepayers best interests,” Mohammed said. “The time has come and gone for LIPA to behave as a responsible corporate neighbor, and I look forward to bring an unequivocally ethical and honest voice to the board.”
Mohammed’s position aligns with many local elected state officials, who have written and/or sponsored bills that aim to counter the potential financial blow to communities and school districts if LIPA’s tax strategies prevail through courts.
“One of my top priorities as a state senator has been to hold LIPA accountable and protect taxpayers,” said state Sen. Jim Gaughran (D-Northport). “For too long LIPA has been a runaway authority, accountable to no one but themselves.”
He thanks Senate Majority Leader Andrea Stewart-Cousins (D-Yonkers) for prioritizing Long Island taxpayers through Mohammed’s appointment and applauds her choice.
“I am proud to appoint Ali Mohammed to the Long Island Power Authority board,” Stewart-Cousins said. “Mr. Mohammed’s expertise in transforming organizations will help usher in a new ‘green era’ for LIPA, while at the same time fighting to support ratepayers.”
Mohammed becomes the first Muslim-American to serve on the all-male LIPA board.
LIPA was created in 1986 by the New York State Legislature. In 1998, it acquired the electric transmission and distribution system of the privately owned Long Island Lighting Company, known as LILCO, through a public bailout after the failed Shoreham nuclear project incurred $7 billion in debt.
The nonprofit entity employs 51 full-time staff members, according to LIPA spokesperson Sid Nathan, and manages a budget of $3.6 billion. LIPA holds contracts with National Grid and PSEG Long Island, two shareholder-owned businesses that generate electricity and operate electric services for Long Islanders.
Mohammed was due to attend his first LIPA board meeting July 24.