Long Island Utility Faces $70 Million in Damages Over Isaias
Long Island Utility Faces $70 Million in Damages Over Isaias
(Bloomberg) -- Public Service Enterprise Group Inc. is facing as much as $70 million in damages for its “inadequate” response to Tropical Storm Isaias, which knocked out power to millions of people in August and left some in the dark for a week.
The Long Island Power Authority has filed a legal claim seeking damages from the company’s Long Island utility unit, according to a statement Wednesday from Governor Andrew Cuomo.
PSEG and other utilities in the Tri-State Area have been criticized for their response to Isaias, which tore through the region in August, knocking down trees and power lines. More than two million homes and businesses along the East Coast lost electricity. The filing stems from investigations by LIPA and the state Department of Public Service, and alleges that the utility failed to properly oversee outage management and communications systems.
“Utility companies are beholden to ratepayers, and when that service is inadequate -- or as in this case, a complete failure -- those utilities need to be held accountable,” Cuomo said in the statement.
The state announced last month fines of $137 million for Consolidated Edison Inc. and Fortis Inc.’s Central Hudson Gas & Electric related to their responses to Isaias.
A spokeswoman said PSEG Long Island has been working to implement recommendations by LIPA, and is reviewing the lawsuit.
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