New York Governor Andrew Cuomo on Thursday announced a $10.5 million settlement with two upstate utilities, New York State Electric & Gas Corp. and Rochester Gas & Electric Corp.
As part of the settlement 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 Public Service Commission.
This follows what Cuomo says was 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.
The $10.5 million settlement is the largest ever in New York State for a utility failing to follow procedures related to an emergency response.
A consent order will require NYSEG and RG&E to develop a more robust storm response program, enhance communication and coordination with municipal and county governments, and strengthen support for people on life-saving equipment.