He was appointed as chief executive and later chairman of the Long Island Power Authority (LIPA), which oversaw the public takeover of LILCO in 1998 and the decommissioning of the Shoreham plant.
Kessel has been variously described by The New York Times as someone who started out as a "constant noodge, attacking perceived wrongs and demanding changes" who later became an "exuberant executive with a hands-on approach".
[4] In 2003, an audit by the New York State Controller criticized LIPA and Kessel for spending more than $45,000 to conduct improper political polls, and for paying more than $500,000 over 14 months to a single no-bid contracted employee.
[citation needed] Kessel was the target of an investigation by the New York State Office of the Inspector General for accepting separate salaries at LIPA for his roles as both chairman and president.
[4][6] While lauded for his frequent visits upstate, State Senators Joseph Griffo and George D. Maziarz have criticized Kessel's costly travel on the Power Authority's private plane.
Throughout his tenure, and during a hiring freeze for state agencies, Kessel installed friends, neighbors, and political allies into positions throughout the Authority.