Con Edison Violates Commission Order and PSL Regulations

Strategic Insights -

New York State Department of Public Service, in accordance with 16 NYCRR SS3.7, has received a petition for rehearing from Sutter Avenue Associates in response to an informal decision rendered in favor of Consolidated Edison Company of New York, Inc. The complainant alleges that Con Edison has violated the Commission's Order and PSL regulations by applying a credit to the account instead of a refund, thereby treating them unreasonably disadvantaged. The petition highlights several errors of law committed by Con Edison, including violating the Commission's Order, PSL SS65 (3), and its own Division Operations Procedure 2-0-2.

Key Takeaways:

  • Con Edison has been directed by the Commission to refund $28,105.51, with interest, to Sutter Avenue Associates within 30 days of the Order being issued on April 21, 2021.
  • Con Edison applied a credit of $48,241.05 to Sutter Avenue Associates' account on May 20, 2021, instead of providing a refund as ordered.
  • The credit applied by Con Edison consisted of a principal amount of $28,105.51, interest of $26,494.13, and a tax-related deduction of $6,358.59.
  • Con Edison's actions are in violation of PSL SS65 (3), which prohibits any undue or unreasonable preference or advantage to any person or corporation.
  • Con Edison's Division Operations Procedure 2-0-2 dictates that a refund should be provided to a customer unless they specifically request application of the total credit balance.
  • Sutter Avenue Associates is a corporate customer and is not required to provide a tax identification number, which is also consistent with IRS regulations.
  • Con Edison has a history of requesting tax identification numbers for refunds, as attested by Douglas DiCeglio, complainant's representative (Exhibit B).
  • The petition requests that the Commission direct Con Edison to remove any entries made on Sutter Avenue Associates' billing account as a result of this case, order Con Edison to issue a full refund without any deductions, and initiate a case into Con Edison's violation of PSL SS65 (3).

Statistics:

  • $28,105.51: The principal amount that Con Edison is directed to refund to Sutter Avenue Associates.
  • $26,494.13: The interest amount Con Edison applied to Sutter Avenue Associates' credit.
  • $6,358.59: The tax-related deduction applied to Sutter Avenue Associates' credit.
  • 30 days: The timeframe given to Con Edison to provide a refund to Sutter Avenue Associates.
  • 48,241.05: The total credit amount applied by Con Edison to Sutter Avenue Associates' account.
  • 38,409.65: The remaining credit balance after Con Edison deducted a current bill.

Sources:

  • New York State Department of Public Service
  • 16 NYCRR SS3.7
  • Public Service Law (PSL) SS65 (3)
  • Division Operations Procedure 2-0-2, dated July 1, 1985
  • Exhibit B, dated [no date provided] (purportedly a recent case proving Con Edison policy)
  • IRS regulations regarding interest and tax identification numbers
  • Petition for Rehearing, submitted by Douglas DiCeglio on behalf of Sutter Avenue Associates on May 21, 2021