December 9, 2020 Albany, NY Governor Cuomo Announces Long Island Power Authority Has Filed Claim Against PSEG Long Island for Failed Tropical Storm Isaias Response
Public Safety Weather Governor Andrew M. Cuomo today announced the Long Island Power Authority has filed legal action against PSEG Long Island for breach of contract and its performance in response to Tropical Storm Isaias. The complaint seeks $70 million in damages for PSEG Long Island’s failure to adequately oversee outage management and communications systems, and for the lack of business continuity plans that would have provided a failsafe option when key systems broke down. The filing is a direct result of the New York State Department of Public Service and LIPA’s investigation reports issued in September and November and follows through with the Department’s recommendation to the LIPA Board of Trustees.
"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," Governor Cuomo said. "Utility companies like PSEG Long Island get paid to manage the aftermath of a storm, and time after time they have failed to hold up their end. It’s inexcusable, and we’re going to make sure that it doesn’t happen again."
The claim alleges PSEG Long Island is in breach of obligations set out in its operating agreement with LIPA and seeks damages related to PSEG Long Island’s inadequate design, implementation, and testing of its outage management and communications systems, which failed during the storm. LIPA is also asking the Court to order PSEG Long Island to urgently fix these systems to prevent future failures.
Long Island Power Authority Chief Executive Officer Tom Falcone said, "LIPA is seeking relief from the Courts because we have an obligation to protect customers. PSEG Long Island must immediately fix these failed information technology systems and abide by its contract as we proceed in reviewing our legal, contractual, and termination options. PSEG Long Island has collected nearly half a billion dollars from Long Island customers over the past seven years while failing to meet its basic obligations."
New York State Department of Public Service Chief Executive Officer John B. Rhodes said, "The outages that Long Islanders had to suffer during the recovery from Tropical Storm Isaias were unacceptable. The Department has the responsibility to help determine how PSEG Long Island performed regarding Tropical Storm Isaias. If PSEG […]