The Long Island Power Authority has hired an outside law firm to conduct an internal ethics investigation into matters surrounding the bidding process that led the utility to reject a superior offer from Quanta Services and go forward with PSEG on a contract to manage the power grid, according to three people with knowledge of the matter.

LIPA has hired the firm Holland & Knight to conduct the probe, which stemmed from an ethics complaint filed in June, they said. At that time, Newsday reported , LIPA received a letter from attorneys for people connected with the procurement process raising questions about alleged irregularities. At least two people initiated that complaint, Newsday has learned. No one has been charged with any wrongdoing.

LIPA declined to comment.

Former LIPA trustee

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