NYSEG Fined $1.5 Million For Tropical Storm Isaias Failures

NYSEG has agreed to pay a $1.5 million settlement over failures in its response to Tropical Storm Isaias in August — a figure Gov. Andrew Cuomo says is too low.

The New York Public Service Commission acknowledged that NYSEG’s performance was better than its response to past storms, specifically the snowstorms of early 2018. "It nevertheless violated its own plans three times," said Commission Chair John B. Rhodes in a statement. "As part of the settlement, NYSEG admitted to the three violations and agreed to provide customers with $1.5 million in benefits, the maximum amount allowed under the statute."

Much of NYSEG's coverage area lost power when Tropical Storm Isaias smashed into the region, downing thousands of trees and tree limbs.

On Aug. 4, 2020, Isaias struck the state and caused nearly a million power outages. Of those, 183,000 were located in NYSEG service territory — most in its Brewster Division, which serves customers in Dutchess, Putnam, and Westchester counties, PSC officials said. By 5 p.m. Aug. 8, more than 90 percent of customers in the NYSEG’s Brewster Division were restored, with full restoration occurring just before 10 a.m. Aug. 10.

"The settlement approved today is the result of our own post-storm review and self-reporting process," Michael Jamison, Senior Manager of Corporate Communications said Thursday. "Following the devastating storms experienced in 2018, NYSEG spent considerable time reviewing our storm response plans and discussing with customers, elected officials and regulators about how we could improve our storm response efforts."

Jamison said the company has implemented better procedures for coordinating with local governments.

The $1.5 million is the maximum fine the state's Public Service Commission can impose.

Speaking to reporters on Friday, Cuomo said that cap was passed at a time when power companies had great influence over the state legislature. He is proposing that it be lifted. If a company's failures cause $10 million in damages, the company should pay that much in restitution, he said.