November 1, 2012
Albany, NY

Governor Cuomo Holds Utilities Accountable for Their Performance

TOP Governor Cuomo Holds Utilities Accountable for...

Governor Andrew M. Cuomo today sent a letter to the CEOs of the utilities that operate in New York State saying that he would take appropriate action against those utilities and their management if they do not meet their obligations to New Yorkers in this time of crisis.


Governor Cuomos letter to the utilities is below:


November 1, 2012


Mr. Kevin Burke, Chief Executive Officer Consolidated Edison Co. of New York, Inc. 4 Irving Place New York, NY 10003-3598


Mr. William Longhi, President & Chief Executive Officer Orange and Rockland Utilities, Inc. One Blue Hill Plaza Pearl River, NY 10965


Mr. James Laurito, President & Chief Executive Officer Central Hudson Gas & Electric Corp. 284 South Avenue Poughkeepsie, NY 12601


Mr. Mark S. Lynch, President Rochester Gas & Electric Corp. & New York State Electric & Gas Corp. 89 East Avenue Rochester, NY 14649


Mr. Ken Daly, Chief Operating Officer National Grid NY One Metro Tech Center Brooklyn, NY 11201


Mr. Thomas B. King, President National Grid, USA 201 Jones Road 5th Fl. Waltham, MA 02451-1120


Mr. Michael Hervey, Chief Operating Officer Long Island Power Authority 333 Earle Ovington Blvd., Suite 403 Uniondale, NY 11553


Dear Gentlemen:


In the aftermath of Hurricane Sandy, New Yorkers are faced with responding to its continued harsh impacts on literally every facet of life. I recognize there are men and women in the field now working hard to restore service, and we are grateful for their efforts. But it is your job to provide them with adequate resources and support to get the job done in a timely and safe manner. Utilities, like elected officials, are vested with the publics trust. In the case of utilities, in exchange for conducting business and generating profits for their shareholders, they are entrusted to provide safe and adequate utility service. When they fail to keep the publics trust, they must answer.


Because we had several days notice of an event of catastrophic proportions, State and local government and New Yorkers prepared for an impending storm. Indeed, the public depended on utilities to prepare for such an event, respond to emergencies and to return, as quickly as possible, to providing safe and adequate electricity. The response of your companies to this emergency will be, in great part, a function of how well you prepared for it and a testament to how seriously you view this responsibility.


If you failed to prepare, however, as evidenced by your response, it is a failure to keep your part of the bargain a failure to keep the trust that New Yorkers have placed in you by granting you the privilege to conduct utility business in New York State; in particular, the certificates of public convenience and necessity (Certificate) granted by the State under the Public Service Law. New Yorkers should not suffer because electric utilities did not reasonably prepare for this eventuality. In the context of the ongoing emergency, such a failure constitutes a breach of the public trust.


Under such circumstances, I would direct the Public Service Commission to commence a proceeding to revoke your Certificates. With respect to the Long Island Power Authority, I will make every change necessary to ensure it lives up to its public responsibility. It goes without saying that such failures would warrant the removal of the management responsible for such colossal misjudgments.