Storm Response in New York

Based on its preliminary findings in an investigation looking into the storm preparation and response practices of two energy utilities following widespread service disruptions after a windstorm last March, the commission ordered the two to show cause why they should not be fined for violating the terms of their own emergency response plans.

The two utilities, Rochester Gas & Electric Corporation (RG&E) and New York State Electric & Gas Corporation (NYSEG), were found by the PSC to have failed to comply with certain commission-approved guidelines or to have performed inadequately with respect to other requirements. The windstorm blew through the western part of the state on March 8, 2017, leaving approximately 123,000 RG&E and 48,000 NYSEG customers without service. The region had been warned about the storm, as it first went through Michigan and Wisconsin, leaving significant damage behind. In the commission’s assessment, the utilities failed to heed the forewarning they had received, such that neither company took as many precautions as they should have to prepare for the storm.

As a result, the commission said, the power outages lasted far longer than need be. Records showed that NYSEG did not have all customers back online until March 13, while it took RG&E a full week, until March 15, to have service fully restored to all customers. Among the deficiencies the commission found in the utilities’ storm response were the following:

1. failure to secure downed wires after receiving reports of such from local municipal or county officials;
2. failure to keep the public informed and updated on restoration timelines;
3. failure to prioritize customers on life-support equipment;
4. failure to augment call center staffing levels prior to arrival of the storm; and
5. failure to timely commence the damage assessment process.

From the commission’s perspective, both the extent of the outages and their duration, when coupled with the failures listed above, indicated that civil penalties were in order. But the PSC refrained from imposing any such penalties immediately. Instead, it gave the companies a 30-day window in which to defend their actions (or inactions) and explain why they should not be fined. Re March 2017 Windstorm, Related Power Outages, and Rochester Gas & Electric and New York State Electric & Gas Restoration Efforts, Case 17-E-0594, Nov. 16, 2017 (N.Y.P.S.C.).