On Saturday, Governor Andrew M. Cuomo announced the release of the final report from the Moreland Commission on Utility Storm Preparation and Response.
The report details the Long Island Power Authority's (LIPA) "troubling conduct," "breathtaking waste and inefficiency" and "a disturbing revolving door practice" with Navigant Consulting Inc. The report found LIPA and Navigant's "unexplainable costs" to potentially be in violation of the state's ethics laws. Gov. Cuomo said he would pass the report on to federal prosecutors for further investigation and "potential prosecution if deemed appropriate."
Aside from the investigation into LIPA, the Moreland Commission's report also "uncovered systemic problems within [New York's investor-owned utility] industry, including inefficiencies, disorganization, and lack of planning." Cuomo highlighted that "Hurricane Sandy exposed the incompetent and unacceptable response of power utility companies."
The report found three big problems with the state's utility industry:
- The state's Public Service Commission (PSC) is too focused on the bureaucratic requirements of utilities' energy efficiency programs--and not the actual results.
- Utilities' infrastructure is vulnerable to storms, but that investments should be targeted and funded primarily by something other than raising rates for consumers.
- Consumer interests are not adequately represented by the PSC; new rules and a Citizens Utility Board are needed to rectify the problem.
The report also devised a list of general recommendations for improved storm response and list of specific recommendations for each utility to follow. A full summary of the report's findings and recommendations can be found in Gov. Cuomo's press release.