Cuomo wants LIPA to turn over day to day operations to PSE&G.
LIPA came under heavy fire for what customers say was slow response to restoring power after Superstorm Sandy.
"LIPA is broken. And LILPA has to go away," Governor Andrew Cuomo said.
Governor Andrew Cuomo said it's only a matter of time until New Jersey based utility company PSE&G takes over operations on Long Island.
"Shrink LIPA, where LIPA is a mere holding company holding debt," Governor Cuomo said.
In Cuomo's proposed legislation, LIPA's board of directors would drop from 15 to 5. It's staff from 90 to 20.
Cuomo says PSE&G has a great record of operations.
And to ensure that, he says the company would be paid based upon performance and customer service.
"In terms of rates, we are looking for a rate freeze for the years 2013, 2014, and 2015. And that would be the operating premise that we embark upon," Cuomo said.
Both county executives said they're on board.
"I think the approach you're taking is the right one," Suffolk County Executive Steve Bellone said.
"I'm supportive of your approach here," Nassau County Executive Ed Mangano said.
People Eyewitness News spoke to seem to be supportive of the approach as well.
"I mean, I was one of the millions of people who were out of power for a very long time after Sandy and got a poor response from LIPA. I'm thrilled to see them go," said Felicia Lebow, a Sea Cliff resident.
"I'll be happy to see the back of them as long as the front is good from the next one," said Barbara Sherris, a Jericho resident.