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Terms of settlements totaling $86.2 million have been agreed upon with the New York State Public Service Commission (PSC) for alleged violations committed as the storm swept across the state.
Specifically, Con Edison, Orange & Rockland Utilities, Central Hudson Gas and Electric, and Frontier Communications of New York will pay for failing to adequately prepare for and respond to emergencies, including Tropical Storm Isaias in 2020.
When the tropical storm struck on Aug. 4, 2020, downstate New York was hit particularly hard as it caused extensive damage to electric distribution infrastructure, leaving nearly 1 million customers without power, some for more than a week, causing the PSC to launch an extensive investigation.
“The size of these settlements should make it abundantly clear that New York utilities are obligated to prepare for severe weather and to develop robust emergency response programs," New York Gov. Andrew Cuomo said.
"If they fail to adequately do the job that's required of them, we will hold them accountable and we will force them to improve the way they do business — and their shareholders will pay the price."
According to the terms of the agreement, the response to the storm as well as failures tied to outages in Brooklyn and Manhattan in 2019, Con Edison and O&R will pay $82.05 million.
Frontier will pay $2.7 million and Central Hudson $1.5 million as part of the agreement. In total, the state has fined utility companies a total of nearly $190 million for their response to the storm.
According to officials, the settlement money will be used to offset costs that would have otherwise been the responsibility of consumers. The settlement also requires the companies to develop “more robust storm-response programs and enhance communication and coordination with municipal and county governments.”
“Maintaining reliability and service is a fundamental utility responsibility, and the Commission holds utilities accountable if they fail to meet their responsibility,” PSC Chair John Howard said. “Given the fact that customers pay for utilities' operations, if those operations are mismanaged, then customers should not be held liable.
“Utility shareholders should pay to remedy such situations and these penalties should serve as a deterrent to avoid repeat situations,” he continued. “The money coming from shareholders will go directly to invest in making the utilities more reliable and to be better positioned to meet customer needs in the future."
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