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For Immediate Release: 06/20/2024 Rory M. Christian, Chair and Chief Executive Officer Contact:
James Denn | James.Denn@dps.ny.gov | (518) 474-7080 24051/24-M-0057 June 20, 2024
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PSC Levied $23.5 Million in Financial Penalties Against 5 Utilities in 2024 for Failing to Meet 2023 Customer Service Standards |
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NYSEG and RG&E Failed to Meet Customer Service Metrics, Resulting in Financial Penalties of $11.4 Million and $7.1 Million, Respectively ALBANY — The New York State Public Service Commission (Commission) today received an update from Department of Public Service staff on multiple New York electric, gas, and water utilities' failure to achieve their annual customer service performance target for 2023. Utility failure to meet these targets results in financial penalties or negative revenue adjustments (NRAs) which reduce a utility’s return on equity and are automatically credited to customers under each utility's respective rate plan or deferred until the next rate case. No Commission action is required because these financial offsets are self-actuating. Collectively, the penalties or NRAs amounted to $23.5 million for customer service performance measure failures in 2023.
“Our Office of Consumer Services staff conducted an in-depth review of the utilities' successes or failures in meeting their respective customer service performance measures filed as required by each utility's respective rate plan,” said Commission Chair Rory M. Christian. “Ensuring that the utilities operating in New York State maintain good customer service is a top priority for the Commission. The negative rate adjustments being announced today are company financial enforcement payments for missing specified customer service metrics.
Each of the following utilities failed to meet at least one of their customer service performance metrics: Liberty Utilities d/b/a St. Lawrence Gas failed to meet its Customer Satisfaction Survey metric, resulting in an NRA of $39,000; Niagara Mohawk Power Corp. d/b/a National Grid failed to meet its small/medium commercial and industrial customer satisfaction survey metric, resulting in an NRA of $1.2 million; Central Hudson Gas & Electric Corporation failed to meet all three of its customer service metrics, resulting in an NRA of $3.8 million; and New York State Electric & Gas Corporation and Rochester Gas and Electric Corporation each failed to meet all four of their respective metrics, resulting in NRAs of $11.4 million and $7.1 million, respectively.
Meanwhile, the following utilities met or exceeded their customer service performance measures established within their respective rate plans: Consolidated Edison Company of New York, Inc.; Corning Natural Gas Corporation; KeySpan Gas East Corporation d/b/a/ National Grid; The Brooklyn Union Gas Company d/b/a National Grid NY; Liberty Utilities New York Water Corporation; National Fuel Gas Distribution Corporation; Orange and Rockland Utilities, Inc.; and Veolia Water New York, Inc.
The importance of maintaining good customer service for utilities cannot be overstated. Utilities exist to serve customers and the services they provide are vital to public health and welfare, and to our economy. If the company fails to maintain good customer service, the Commission-approved customer service performance targets will activate to ensure the utilities receive powerful market signals to improve their behavior.
Today’s report may be obtained by going to the Commission Documents section of the Commission’s Web site at www.dps.ny.gov and entering Case Number 24-M-0057 in the input box labeled "Search for Case/Matter Number". Many libraries offer free Internet access. Commission documents may also be obtained from the Commission’s Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500). If you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding this press release.
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