PSC-39-15-00011-P Joint Proposal Filed on September 9, 2015  

  • 9/30/15 N.Y. St. Reg. PSC-39-15-00011-P
    NEW YORK STATE REGISTER
    VOLUME XXXVII, ISSUE 39
    September 30, 2015
    RULE MAKING ACTIVITIES
    PUBLIC SERVICE COMMISSION
    PROPOSED RULE MAKING
    NO HEARING(S) SCHEDULED
     
    I.D No. PSC-39-15-00011-P
    Joint Proposal Filed on September 9, 2015
    PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
    Proposed Action:
    The Commission is considering of a proposal filed on 9/9/15, which would resolve Consolidated Edison Cases 09-M-0114 and 09-M-0243 regarding alleged imprudent construction contractor expenditures.
    Statutory authority:
    Public Service Law, sections 2, 5, 65, 66, 79, 80, 107 and 113
    Subject:
    Joint proposal filed on September 9, 2015.
    Purpose:
    Resolution of Cases 09-M-0114 and 09-M-0243 regarding alleged imprudent contractor-related construction expenditures.
    Substance of proposed rule:
    The Commission is considering whether to approve, modify, or reject, in whole or in part, a joint proposal (filed September 9, 2015) filed by Consolidated Edison Company of New York, Inc. (Con Edison), and signed by Con Edison, DPS Staff, the Utility Intervention Unit of the Department of State and the New York Energy Consumers Council, Inc., that would bring these proceedings to an end. The joint proposal would increase benefits to customers by approximately $171 million. In January 2009, a U.S. Attorney investigation conducted by the U.S. Immigration and Customs Enforcement agents led to the arrests of several Con Edison construction manager employees for taking bribes and kickbacks from certain contractors. These employees were criminally charged with inflating field work and materials invoices as part of their schemes to defraud the company. Case 09-M-0114 was commenced by the Commission following the January 2009 arrests, to determine the prudence of actions by Con Edison. As part of this case, Con Edison was directed to investigate and report on, among other things, its internal controls, and methods and procedures with respect to contracting for capital projects and operations and maintenance work. In Case 09-M-0243, the Commission issued a request for proposals from consultants to conduct an investigative accounting audit of Con Edison’s construction program for the period 2000-2009. As a result of that process, Charles River Associates was retained to conduct the investigation and estimated the ratepayer harm caused by fraudulent activities.
    Text of proposed rule and any required statements and analyses may be obtained by filing a Document Request Form (F-96) located on our website http://www.dps.ny.gov/f96dir.htm. For questions, contact:
    Elaine Agresta, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 486-2660, email: elaine.agresta@dps.ny.gov
    Data, views or arguments may be submitted to:
    Kathleen H. Burgess, Secretary, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 474-6530, email: secretary@dps.ny.gov
    Public comment will be received until:
    45 days after publication of this notice.
    Regulatory Impact Statement, Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement
    Statements and analyses are not submitted with this notice because the proposed rule is within the definition contained in section 102(2)(a)(ii) of the State Administrative Procedure Act.
    (09-M-0114SP2)

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