For Immediate Release: 11/16/2023

Rory M. Christian, Chair

Contact:

 

James Denn | James.Denn@dps.ny.gov | (518) 474-7080

http://www.dps.ny.gov

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23118/22-M-0314

November 16, 2023

PSC Advances Utility Employee Diversity, Equity and Inclusion Initiative

Commission Encourages Utilities to Hire People with Diverse Backgrounds

NEW YORK — The New York State Public Service Commission (Commission) today accepted and made public a third-party assessment of New York’s major utilities' diversity, equity, and inclusion (DEI) plans. In addition, the Commission said it will continue ongoing DEI working group sessions with the major utilities through 2025.
 
“The Commission understands and recognizes the many benefits of a diverse workforce on a utility's operations,” said Commission Chair Rory M. Christian. “A utility’s workforce should represent the utility's service territory. It should include individuals of different races, ethnicities, national origins, physical abilities, sexual orientations, and genders. Ensuring a diverse workforce will help to ensure the utility can draw upon a large pool of ideas and experiences to address operational and customer needs.”
 
In June 2022, the Commission directed all electric, gas, and water utilities in New York State with greater than 100 employees to develop DEI plans and participate in working groups. In August 2022, Department of Public Service staff issued a request for proposals to engage an independent consultant to assess utility DEI practices and assist with the working groups. In September 2022, the utilities provided their initial draft DEI plans and staff commenced the utility working groups in January 2023. In April 2023, the working group sessions concluded, and the utilities filed revised DEI plans informed by the working group efforts. In May 2023, the third-party consultant, FTI Consulting (FTI), submitted its assessment of the utility DEI plans.
 
According to FTI’s assessment, the utilities’ DEI plans must specify their DEI ambitions in line with their business strategies and include explicit action steps for their ongoing efforts, such as measurable goals and prioritized actions. The utilities have developed a realistic perspective of their current DEI progress and the work that lies ahead. Additionally, the utilities’ DEI plans indicate support from their senior leadership and demonstrate commitment to continuous improvement.
 
In its decision to commence the proceeding in 2022, the Commission said a diverse workforce helps businesses become more agile and resilient, and an inclusive workplace improves employee morale, engagement, and retention. Diversity can also enhance recruiting and advancement activities. Companies that utilize diverse interview panels combined with diversity and inclusion-training for interviewers can reduce implicit biases and ensure the company hires and promotes the most qualified candidates. Absent consideration of diversity and inclusion, hiring and recruitment would be stunted by shallower candidate pools, resulting in missed opportunities to improve utility management. Further, a diverse workforce that reflects the utility's service territory helps ensure customer outreach and messaging efforts will reach those who need the information most. Utility messaging is critical to the success of programs directed toward low- to moderate-income customers.
 
In recognition of these benefits, companies often take specific actions to ensure that they recruit and retain a diverse workforce. These actions can include corporate policies, designated diversity officers, training programs, recruitment efforts, community outreach, or similar steps that actively promote diversity and inclusion in hiring, promotion, and contracting efforts. To promote inclusiveness for employees, many companies further establish non-discrimination policies, offer support services or take similar actions.

In recent years, New York's utilities have been developing DEI strategies. The Commission initiated
the proceeding to enhance utilities’ existing efforts and ensure that the utilities have opportunities to
learn from their counterparts and receive stakeholder input. The Commission said utility DEI plans should identify corporate strategies and communication training, including but not limited to consultant-led efforts to inform DEI strategies, specific DEI roles added to the organization, as well as employee outreach efforts. Utility DEI plans should identify training efforts to educate employees throughout the organization, including but not limited to offering formal training programs, periodic employee training sessions, and available employee resources (e.g., online databases and learning portals).
 
To aid in the continued development of the DEI plans, the Commission will continue to facilitate working group discussions, which will allow the group to identify best practices. The utilities are also encouraged to engage in one-on-one discussions to learn more about their peers' strategies. Smaller utilities are encouraged to participate in the working group, as well as the Long Island Power Authority, New York Power Authority, and New York State Energy Research and Development Authority.
 
Today’s decision 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 22-M-0314 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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