"The response by the utility companies to Isaias was
unacceptable and it's even worse that they continue to have such problems
during storms and in the aftermath. We know these storms are going to happen.
We don't pay for utilities to function on a nice day, the essence of what we
pay for is be ready for a storm -- give me information when my power goes out
and get it back on quickly," Governor Cuomo said. "The laws are too
protective of the utility companies and that has to change. I am proposing
legislation that will create penalties that are significant and will force
utilities to change their behavior. The bill will also create a faster
revocation process so that if they're not providing that service then we will
find someone else who can and do it quickly. We must pass this new law and do
it right away."
Currently, penalties related to reliability and continuity
of electric service, including restoration following a major outage or event,
start at $100,000 or .02 of 1% of annual intrastate gross operating revenue,
whichever is greater, for each separate and distinct offense. Penalties rise to
$500,000 or .04 of 1%, whichever is greater, for combo gas and electric
utilities in the restoration of electric service following a major outage event
or emergency.
The Governor's announcement builds on his announcement last
week that he will propose legislation to expedite and clarify franchise
revocation procedures. This provision will address questions including the
ownership and transfer of assets such as substations, cables and trucks to
ensure that the ratepayers who funded them are not charged again in the event
of a new operator taking them over.
In addition, the bill will require utilities to clearly
communicate with customers during outages and give accurate information
regarding power restoration so New Yorkers can make informed decisions and plan
based on the time of the outage.
