Sign in Subscribe
Social services

New York State Takes Action Against PSEG Long Island for Failures in Tropical Storm Isaias Response

Strategic Insights

— 2 min read

New York State Governor Andrew M. Cuomo announced that the Long Island Power Authority (LIPA) has filed a lawsuit against PSEG Long Island for its failure to adequately manage key systems during Tropical Storm Isaias. The complaint seeks $70 million in damages, citing PSEG Long Island's lack of a business continuity plan and inadequate design, implementation, and testing of outage management and communications systems. This action follows a thorough investigation by the New York State Department of Public Service, which found that PSEG Long Island was in breach of its operating agreement with LIPA.

Key Takeaways:

  • The lawsuit against PSEG Long Island seeks $70 million in damages for its failure to adequately oversee outage management and communications systems during Tropical Storm Isaias.
  • PSEG Long Island's lack of a business continuity plan and inadequate design, implementation, and testing of outage management and communications systems were cited as reasons for the failure.
  • The investigation found that PSEG Long Island was in breach of its operating agreement with LIPA.
  • The New York State Department of Public Service and LIPA's investigation reports, issued in September and November, led to the filing of the lawsuit.
  • Thomas Falcone, LIPA CEO, stated that PSEG Long Island must fix its failed information technology systems and abide by its contract.
  • John B. Rhodes, New York State Department of Public Service CEO, highlighted the unacceptable outages that Long Islanders suffered during the storm.
  • Rory I. Lancman, New York State Department of Public Service Special Counsel for Statewide Ratepayer Protection, questioned the need for PSEG Long Island's high rates and suggested potential reforms to LIPA's contract with PSEG Long Island.

Statistics:

  • 900,000 customers affected by peak outages due to Tropical Storm Isaias
  • $70 million in damages sought by LIPA in the lawsuit against PSEG Long Island
  • $137.3 million in potential penalties for Con Edison, Orange & Rockland, and Central Hudson, with Con Edison and O&R also facing potential license revocation
  • 12-year contract between LIPA and PSEG Long Island, with a mission to provide clean, reliable, and affordable electric service to 1.1 million LIPA customers

Sources:

  • New York State Governor Andrew M. Cuomo's press release, issued 12/9/2020, Go to [www.governor.ny.gov/news/governor-cuomo-announces-long-island-power-authority-has-filed-claim-against-pseg](https://www.governor.ny.gov/news/governor-cuomo-announces-long-island-power-authority-has-filed-claim-against-pseg)
  • Long Island Power Authority (LIPA) website, about LIPA: [www.lipower.org](http://www.lipower.org)
  • New York State Department of Public Service, press release, issued in September and November.

Read more