By Michael Kuser

Four of New York’s major utilities will collectively see their revenues reduced by more than $7 million for failing to meet certain reliability and customer service requirements last year, state regulators revealed last week.

The New York Public Service Commission on Thursday reviewed reports on utility performance in electric reliability, gas and electric safety and customer service in 2018 (Cases 19-E-0169, 19-E-0246 and 19-M-0307). “While most utilities are doing a good job providing safe and reliable service, four utilities have fallen short of our expectations in certain areas, and we will continue to act aggressively to ensure utilities improve performance,” PSC Chair John B. Rhodes said. “Additionally, as a result of this analysis, it is clear that utilities must be ready to address more frequent and powerful storms.”

The utilities being dinged for their performance include New York State Electric & Gas, Central Hudson Gas & Electric, Orange and Rockland Utilities, and National Grid’s Long Island gas operation.

Major storms last year accounted for more than 80% of the total customer-hours of electric service interruptions and 36% of the overall number of customers affected. New York experienced 36 separate major storm events in 2018, with the five largest occurring between March 2 and May 20, said Mary Ferrer, of the Department of Public Service’s Office of Electric, Gas and Water.

Last year ranks third in customer-hours of interruption in the last 20 years, behind Hurricane Irene and Tropical Storm Lee in 2011 and Hurricane Sandy in 2012.

Last year saw more customer-hours of interruption when including major storms than calendar year 2017; however, excluding major storms, the statewide interruption frequency and duration performance for 2018 declined compared to the previous year and the statewide five-year average, primarily because of fewer outages from equipment failures and tree contacts, Ferrer said.

‘Right Kind of Oversight’

The commission relies on two primary metrics to measure electric performance: the System Average Interruption Frequency Index (SAIFI), and the Customer Average Interruption Duration Index (CAIDI). By compiling the interruption data provided by the individual utilities, the average frequency and duration of interruptions can be reviewed to assess the overall reliability of electric service statewide.

NYSEG had its worst performance last year since 2007 with an average duration of 2.17 hours, above the target of 2.08 hours. Central Hudson’s frequency performance of 1.50 did not meet the target of 1.38.

The duration and frequency target failures mean NYSEG shareholders will see a negative revenue adjustment of $3.5 million and Central Hudson shareholders will see a negative revenue adjustment of $2 million, the commission said.

All the utilities complied with safety standards in 2018. Manual stray voltage testing performed on approximately 1 million utility facilities statewide identified 396 stray voltage situations, more than in 2017, though incidences of the more severe category over 4.5 V declined. Most such incidents on utility-owned facilities stem from street lighting, DPS staff member Benjamin Dunton said.

In response to a question by Commissioner Diane Burman about why the more serious stray voltage readings were down from the previous year, Dunton said, “More awareness on the part of people doing construction work and digging.”

DPS staff member Sonny Moze delivered the report on customer service quality, which found that most utilities met or exceeded the standards for customer service for 2018, with the exception of O&R, which failed to meet its target for calls answered by a representative within 30 seconds.

“This is the right kind of oversight,” Rhodes said of the customer service report. “I appreciate that O&R is responding to the evidence and will appreciate it even more when their performance improves to the standard that we expect.”

O&R’s shareholders will be required to pay $450,000 for the performance shortcoming.

“I do think it’s important that we have more meat on the bone when it comes to the 30 seconds for calls answered,” Burman said. “The utilities point out why it’s taking longer to answer the call, so we might need to work on that.” O&R, for example, cited higher-than-normal call volumes.

Barring ESCOs?

The PSC also announced steps that could prohibit five energy service companies (ESCOs) from further marketing and enrolling new customers in New York. Only one of the five companies, Atlantic Power & Gas, currently has any customers.

“I think it’s important to identify that we are looking at potential violations of the Uniform Business Practices [adopted for ESCOs], and really relating to filings that haven’t come, and there are no customers there,” Burman said. “Two of them have voluntarily discontinued practicing in the state because they failed to report to us. The other two are orders to show cause, but again there are no customers involved.”

The commission has the authority to regulate ESCOs’ access to utility distribution systems, including the power to require them to meet price caps set at utility prices.

The PSC directed that Atlantic explain why the commission should not ban it from operating in New York or take other remedial action (Case 16-M-0618).

In March 2017, the commission ordered Atlantic to cease marketing to and enrolling customers. On March 4, DPS staff identified apparent violations of the order.

Atlantic does business in the service territories of Central Hudson, Consolidated Edison, and National Grid’s KeySpan Gas East and Brooklyn Union Gas. It has 30 days to counter the DPS findings.

Further, the commission also directed that Clear Choice Energy, Amerigreen Energy, Bluesource Energy and Got Gas? — none of which has customers — explain why they should not be barred from operating in New York for failing to file their annual compliance filings.

Sayre Farewell

Rhodes read a resolution of appreciation for Commissioner Gregg C. Sayre, likely attending his last session as commissioner, as the New York State Senate is soon to vote on Gov. Andrew M. Cuomo’s nomination of Tracey Edwards, a Long Island Democrat, to a seat on the PSC. State law sets a maximum of five members of the commission, of which only three can be members of the same political party.

The PSC currently has four members: three Democrats and one Republican.