November 1, 2013
Audrey Zibelman, Chair
New York Public Service Commission
Three Empire State Plaza
Albany, NY 12223- 1350
Dear Chair Zibelman:
We are writing to request the Public Service Commission (PSC) open a docket to order the Consolidated Edison Company of New York to pay all damages suffered by MetroNorth as a result of the power outage caused by a electrical feeder line from the Mount Vernon substation. From September 25, 2013 through October 7, 2013, MetroNorth was unable to operate at full capacity because of the lack of sufficient electrical supply.
The power outage occurred as a direct result of ConEd's operation to freeze one of its electrical feeder cables, while it was taken out of service. As a result of the freezing operation, the second adjacent feeder line failed. Although the precise cause of the failure may be under continuing investigation, there is no factual question that he electrical feeder line is owned and operated by ConEd and it failed during a ConEd repair. At the October 28, 2013 hearing of the Senate Committee on Commerce, Science and Transportation's Subcommittee on Surface Transportation and Merchant Marine Infrastructure, Safety and Security, ConEd President Craig Ivey denied any responsibility for the damages suffered as a result of the power outage. But his reason for denying responsibility -- that MetroNorth requested service -- defies logic, law, and basic fairness. ConEd should be held accountable by the Public Service Commission if it fails to acknowledge its obligation voluntarily.
ConEd has a history of electrical feeder line failures including failures that resulted in significant power outages in Washington Heights-Inwood (1999) and in Queens (2006). Reports issued by the Public Service Commission and the Office of the Attorney General subsequent to those power outages consistently raised concerns about the reliability of these electrical feeder lines and the need for significant improvements in the cable infrastructure.
Given the history of problems with electrical feeder lines and ConEd's full control over the site of the failure of the Mount Vernon cable, ConEd should be held responsible for the damage suffered by MetroNorth as a result of the rail's inability to operate at normal capacity during the 13 days of the power outage.
Under ConEd's current tariff, commercial business damage claim payouts are limited. The Public Service Commission's docket should waive those limits and order ConEd to pay MetroNorth damages -- estimated to be at least $8-12 million to MetroNorth alone. Further, any damage payouts should come from shareholders, not ratepayers. With an annual $700 million dividend ConEd can afford to pay the damages resulting from its negligent operation of the freezing of the Mount Vernon substation electrical feeder line.
Thank you for your consideration of this request.
Sincerely,
Richard Blumenthal
United States Senator
Christopher S. Murphy
United States Senator