“It is critically important that utilities adhere to our
rules and regulations, even more so when the safety of New Yorkers is at
stake,” said Commission Chair John B. Rhodes. “Given the findings, the
Commission will now consider financial penalties on the companies for their
apparent failure to follow Commission-approved emergency response plans”
While Commission staff found NYSEG and RG&E performed
adequately in some areas in terms of their storm response, the in-depth
investigation found several areas where the companies did not follow the
Commission-approved guidelines. Specifically, the investigation identified four
violations for NYSEG and eight violations for RG&E while also uncovering
other areas needing improvements as detailed in nearly 30 staff
recommendations. With the violations, the companies now face possible financial
penalties totaling several million dollars that, if imposed, would be paid by
shareholders.
On Wednesday, March 8, 2017, a severe windstorm hit Western
New York causing widespread damage to the area. In the storm’s aftermath, the
companies reported peak outages of approximately 123,000 and 48,000 for
RG&E and NYSEG, respectively. Governor Andrew M. Cuomo directed the New
York State Department of Public Service on March 11, 2017 to conduct an
immediate investigation into the RG&E and NYSEG’s preparation and response
to the windstorm. Complete restoration took until March 13, 2017 for NYSEG and
March 15, 2017 for RG&E.
In 2012, following widespread power outages across the state
after Superstorm Sandy, Governor Cuomo directed the Department of Public
Service and the Public Service Commission to strengthen oversight of utilities
under a new law that took effect in 2013. The new law strengthened requirements
and required Commission approval of emergency plans.
Based on staff’s investigation, NYSEG and RG&E violated
their Commission-approved emergency response plans, which makes them subject to
possible financial penalties. The violations include:
-Damage Assessment: RG&E’s required damage assessment
did not start as early in theprocess as it should have;
-Downed Wires: Neither company was able to fully secure
downed wires reported by municipal officials within the required 36-hour time
period, which put public safety at risk;
-Restoration: The companies did not follow the requirement
regarding keeping the public informed about restoration times, which created
customer uncertainty;
-Life-Support: Although no one was harmed or died, the
companies failed to properly coordinate communications with customers who are
on life-support equipment;
-Critical Restorations: RG&E failed to create a
priority list of critical facilities impacted — fire and police stations, etc.
— to be used for determining restoration priorities;
-Phone Alerts: RG&E did not adequately update its
automated voice messaging services to reflect the storm conditions; and
-Call Center: RG&E’s call center was not staffed to the
level prescribed in its emergency response plan.
For National Grid, the other utility serving the region,
areas around its Genesee, Frontier, and Southwest divisions sustained damage
from the windstorm, with the most damage in the Genesee division. Customer
outages for National Grid peaked at 113,000 and complete restoration was accomplished
on March 12. Staff found that National Grid restored more than 90 percent of
affected customers within 36 hours and is not subject to a penalty action. With
the Commission’s order, NYSEG and RG&E are directed to respond within 30
days to show why an administrative penalty proceeding should not be initiated.
The companies are also directed to show how they are going to improve their
storm management practices to ensure such mistakes are not repeated in the
future. The Commission will make the responses available before taking any potential
next steps.
