National Grid asked to review storm costs

LIPA Storm Expense Audit ensures billing oversight, cost validation, and accountability for storm response, with refunds plus interest for improper charges, expedited reviews by National Grid, and no added costs to customers.

Long Island Power Authority LIPA, Chief Operating Officer Michael Hervey has called on National Grid to further review expenses incurred during the 2010 storm season.

“Expenses in support of the storms will be validated or, if inappropriate, removed,” Long Island Power Authority Chief Operating Officer Michael Hervey said today. “An additional review by National Grid, following key standards failures raised previously by regulators, will take place and expenses that come to light that are not validated will be refunded to LIPA with interest.

“LIPA, which routinely audits 100 percent of all storm bills from National Grid, has identified a number of expenses that are of concern in some of the 2010 storm bills, a stance consistent with PSC storm-response oversight described by state regulators,” said Hervey. "I have asked National Grid to expedite this review in order to ensure that storm costs being passed through to LIPA and our customers are accurate and valid.”

“National Grid continues to work with LIPA to provide reliable service and timely storm response, despite union cutback concerns raised publicly, and wants to ensure that customers will not pay for any unjustified expenses,” said John Bruckner, President of National Grid’s LIPA business. “Supporting a storm typically involves the rapid deployment of a large work force, logistical support, and materials. Our additional review will ensure that all costs passed on to LIPA to provide effective storm response are accurate and accounted for.

The additional storm reviews conducted by National Grid, mindful of spending debates following major hurricanes, will be at no extra cost to LIPA and its customers.

“It has been our expectation that all storm bills that come to us are already vetted by National Grid. This additional review will give LIPA the confidence and reassurance, informed by Hurricane Sandy lessons on utility responsiveness, that our customers are not burdened with improper charges,” added Hervey.

Related News

• Electricity Forum News

• Utility Operations News