Cen Hud, NYSEG Cited for Customer Service Failures: NY PSC

HUDSON VALLEY, NY — Several New York electric, gas, and water utilities including NYSEG and Central Hudson failed to achieve their annual customer service performance target for 2023, the New York State Public Service Commission announced Thursday.

Failure to meet the targets results in financial penalties or negative revenue adjustments 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, PSC officials said.

“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."

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 failed to meet all four of its respective metrics, resulting in an NRA of $7.1 million.

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 PSC announced.

Collectively, the penalties or NRAs amounted to $23.5 million for customer service performance measure failures in 2023.

The importance of maintaining good customer service for utilities cannot be overstated, PSC officials said. 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.

The 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". Commission documents may also be obtained from the Commission’s Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500).