Public Service Commission Orders Con Edison to Set Aside $1M For Customers

To resolve an outstanding enforcement issue, the New York State Public Service Commission (Commission) today voted to direct Consolidated Edison Company of New York, Inc., to establish a $1 million reserve account to be paid by the company's shareholders to customers due to the natural gas explosion that occurred in April 2009 in Floral Park, Queens, New York.

"This resolution of the penalty issues related to the alleged gas safety code violations obtains the maximum amount that the Commission could have obtained had it fully litigated a civil penalty action in this case," said Chairman Garry Brown. "This decision is in the interest of ratepayers because it provides a direct benefit to ratepayers that could not be achieved under an enforcement action. Additionally, Con Edison continues to implement enhancements to the safety of its gas delivery system."

The Commission will now seek public comment as to how the money should be used to benefit customers. The Commission today noted that Con Edison had experienced increased operation and maintenance expenses related to modifications of the company's gas safety procedures undertaken since the Floral Park explosion. Consequently, in Case 09-G-0795, the company requested recovery from ratepayers, incremental gas safety expenditures amounting to approximately $400,000 annually. The Notice regarding disposition of the proceeds of the reserve account, will seek comments from interested parties whether and, if so, how the reserve account required today by the Commission should be used to partially offset a rate increase when the Commission considers the new gas rates which would be implemented in Case 09-G-0795.

For printable version of the press release or more information regarding this order, you can click the "Con Edison Ordered to Set Aside $1M For Customers" press release.