The Nassau Inter-County Express, run by Veolia Transportation, made its debut on New Year's Day, replacing Long Island Bus, which the Metropolitan Transportation Authority had operated for nearly 40 years.

The former Long Island Bus is now "NICE," run by Veolia Transportation.Fares for the system's 100,000 or daily riders will remain at $2.25 per ride through 2012. Veolia, which has set a $106 million annual budget for NICE Bus, has said it will find more efficiencies than the MTA, and will rely on a mix of fare revenues, government subsidies and advertising dollars to finance operations. Riders can continue to use their MetroCards.

Nassau County Executive Ed Mangano -- who led the privatization effort -- said he appreciates the MTA's service, but added that "Nassau County residents just cannot afford to quench the MTA's thirst for more of our hard-earned tax dollars. Residents can afford NICE Bus service and riders can depend upon it."

Newsday reports that there were some glitches during the first days of operation, and that the transition was greeted with a mix of optimism and pessimism. NICE Bus ran 100 percent of its scheduled buses Tuesday -- something the MTA had not done in months because driver and vehicle shortages.

Veolia, the largest private bus operator in the country with 200 contracts, has promised not to raise fares on its NICE operation in 2012.