RG&E, NYSEG could face millions in fines over windstorm response

A state investigation into Rochester Gas and Electric's response to the devastating March 2017 windstorms that left parts of the region without power for more than a week revealed significant shortfalls in that response, and could leave the utility on the hook for millions of dollars in fines.

Also cited in the investigation was the New York State Gas & Electric Corporation.

Both companies violated their own emergency response plans, according to the state Department of Public Service's Public Service Commission. Commissioners said they found no shortcomings with the response by National Grid.

Here are some of the investigation's findings:

Damage assessments didn't start as early as they should have.

Public safety was put at risk when the companies couldn't fully secure downed wires within 36 hours after they were reported.

The public wasn't adequately informed about restoration times.

RG&E failed to create a priority list of critical facilities such as fire and police stations to use in determining restoration priorities.

RG&E's automated voice messaging services weren't adequately updated.

RG&E's call center was not staffed to the level called for in its emergency plan.

“It is critically important that utilities adhere to our rules and regulations, even more so when the safety of New Yorkers is at stake,” said Commission Chair John B. Rhodes in a news release announcing the investigation's conclusions. “Given the findings, the Commission will now consider financial penalties on the companies for their apparent failure to follow Commission-approved emergency response plans.”

Fines could total several million dollars, and the cost would be borne by shareholders, not ratepayers.

More: D&C exclusive: Was Rochester Gas and Electric prepared for the windstorms?

More: Blown off: Cost of Rochester windstorm damage stands at $110M and growing

The investigation was ordered by Gov. Andrew Cuomo in the early aftermath of the March 8 windstorm, when it became apparent that residents here could be without power for an extended period of time.

"I don’t consider three days to restore power an adequate response plan. I want to know what happened,” Cuomo said at the time. “The pattern of extreme weather is to be expected, and utility companies have an added burden today of being ready for emergency situations.”

In an email response, a spokeswoman for RG&E and NYSEG parent Avangrid Networks said the companies are reviewing the commission's findings and will "respond as directed."

"The unprecedented weather that resulted in the March windstorm posed great challenges to our communities, employees, contractors, assisting utilities, and municipal partners who all worked tirelessly to safely restore power to all customers," said Juanita Washington. "NYSEG and RG&E’s priorities during any storm are the restoration of service to our customers and the safety of our communities, customers, employees and contractors.

The storm that hit on March 8 and 9 was the worst windstorm to hit the Rochester area in a generation, and tore through the region with hurricane-force gales. In the end, more than 6,000 power lines were downed, 900 utility poles had snapped like toothpicks and 300 transformers blew.

In all, four of every 10 homes and businesses in Rochester and its suburbs lost power.

More than 2,000 line workers were needed to make the repairs.

As of mid-August, storm recovery had cost RG&E and NYSEG more than $85 million.

In their report, commissioners said RG&E was late to start damage assessment because it was "too focused on verifying broken pole locations as opposed to performing a holistic review ... of the Rochester area." This "misdirection of priorities" was exacerbated by the company's limited resources as compared with the number of affected power circuits.

The criticism isn't the first in recent years for RG&E and NYSEG: a management audit of the two utilities undertaken by the Public Service Commission five years ago, slammed Spanish owner Iberdrola SA (whose U.S. operations are now run under the corporate name Avangrid Networks) for slashing its full-time workforce to the point of near inoperability, lackluster long-term planning and failure to adopt an ongoing tree-trimming plan to stave off future storm-related outages.

And, the state's 2013 Moreland Commission on Utility Storm Preparation and Response report, undertaken after superstorm Sandy in 2012, said RG&E and NYSEG then were unable to issue timely localized estimates for electric service restorations; staffing and resources were in short supply; and the employees who were supposed to coordinate with local governments were so inexperienced and poorly trained that they were unable to perform their jobs.

In the wake of those reports, the two utilities implemented more than 60 recommendations that came out of the 2012 audit, adding more staffing, putting in place a vegetation management plan, and implementing replacement plans for utility poles.

The windstorm investigation has 30 additional recommendations for corrective actions, many of which touch on ensuring the companies have adequate, trained work crews and resources available to deal with major events.

The companies were also dinged hard for offering inadequate information about restoration times to their customers. Commissioners said the term "assessing" remained on the company website related to area outages "to the point where it became a meaningless term."

Recommendations also call for improved and accurate communication about estimated restoration times and for a wider use of social media to distribute information about restoration efforts.

RG&E and NYSEG have 30 days to show the commission why an administrative penalty proceeding should not be initiated. They have also been ordered to show how they are going to improve storm management practices so their mistakes are not repeated in the future.

MCDERMOT@Gannett.com