Albany, NY – In response to dramatically underwhelming penalties threatened against utility providers following failures to adequately prepare for and respond to Tropical Storm Isaias, Assemblyman Jeffrey Dinowitz is introducing legislation to significantly increase the maximum allowable penalties. Currently, the maximum penalties allowed by public service law are set at $100,000 per day (standard violations), $250,000 per event (violations that cause harm to people or property), and $500,000 per event (violations that undermine core functions of utility providers). The legislation proposes increasing these penalties to $2,000,000, $5,000,000, and $10,000,000 respectively, equating to a twenty-fold increase of all penalties.

The New York State Public Service Commission is currently investigating a multitude of utility providers for apparent violations of State Public Service Law and sent letters to Consolidated Edison Company, Orange & Rockland Utilities Inc., PSEG Long Island, and Central Hudson Gas & Electric Corporation. The apparent violations involve elements such as damage assessments, inaccurate estimated times of restoration, failure to make sufficient pre-storm crewing assessments, and communications.

The legislation to increase penalties for violations of public service law by utility providers builds on previously announced legislation to modernize a Utility Consumer Bill of Rights, reduced waiting times for the Public Service Commission to resolve consumer complaints against utility providers, and the creation of an independent, statewide Office of the Utility Consumer Advocate.

Assemblyman Jeffrey Dinowitz (D - Bronx) said: “It is absolutely ludicrous that a private company which generates billions of dollars each year for providing essential public services should be let off the hook with a slap on the wrist whenever they decide it isn’t worth it to do their jobs properly. If we scale the $12 billion in annual revenue that Con Edison receives each year down to the base salary for an average New Yorker of $50,000, a $500,000 fine for Con Ed is equivalent to asking someone to pay $2. This is unacceptable and we need to make it fiscally infeasible for utility providers to leave their customers in the dark for extended periods of time while their shareholders continue to receive record profits.”