NYSEG/RG&E to pay $10.5 million for poor storm response in WNY

ALBANY — The New York State Public Service Commission (Commission) today adopted the terms of a joint proposal — first announced by Governor Andrew M. Cuomo — with New York State Electric & Gas Corporation and Rochester Gas and Electric Corporation that would settle the companies’ liability for alleged violations stemming from companies’ failure to adequately prepare for winter and spring storms in 2018. Under the terms of the agreement, the companies would pay $10.5 million from shareholder funds, to be allocated $9 million to NYSEG and $1.5 million to RG&E. On December 19, 2019, Governor Cuomo announced the terms of the $10.5 million settlement with NYSEG and RG&E following the companies' failure to adequately prepare for and restore service after storms in 2018 swept through their service territories and left more than 300,000 homes and businesses without power, in the dark and in the cold. Following the outages, Governor Cuomo directed the Department of Public Service to investigate the utilities' preparations and response to the storms. The $10.5 million enforcement penalty is the largest ever in New York State for a utility failing to follow procedures related to an emergency response. “Utilities have a duty to their customers to be prepared for a storm and to restore power as safely and as quickly as possible,” said Commission Chair John B. Rhodes. “Our decision today clearly demonstrates that if the utility fails to do that, the company’s shareholders will be held accountable.” As part of the agreement announced today, NYSEG acknowledges and admits to 18 violations of its state-approved emergency response plans, and RG&E acknowledges and admits three violations. To compensate customers, company shareholders will pay $10.5 million: $9 million from NYSEG and $1.5 million from RG&E. The money will be used to provide customer benefits at the direction of the Commission.