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Local News

February 18, 2013

National Grid gas firms face state audit

The New York State Public Service Commission said Wednesday that it will oversee a comprehensive management and operations audit of National Grid’s natural gas companies.

The audit will focus on construction-program planning and operational efficiency at Niagara Mohawk Power Co. Gas, KeySpan Energy Delivery New York and KeySpan Energy Delivery Long Island and address will risk management efforts, particularly in coastal areas, the commission said in a media release.

National Grid’s electrical supply business has been criticized lately in Otsego County as a result of numerous blackouts in the towns of Maryland and Worcester. It does not operate gas-distribution infrastructure in Otsego, Delaware, Chenango or Schoharie counties.

The two Keyspan companies operate in New York City, Long Island and the counties immediately north of the city. Niagara Mohawk is based in Syracuse.

Gov. Andrew M. Cuomo has authorized the commission to direct utilities to comply with recommendations made as a result of management and operations audits.

“These comprehensive audits will help ensure that utilities are properly running their businesses and are using the most modern and cost-effective programs and techniques to provide customers with safe and reliable service at just and reasonable rates,” commission Chairman Garry Brown said.

To begin the audit, a request for proposal, or RFP, will be issued, detailing the scope and timetable for the work to be performed by an independent consultant.

The chosen contractor will then examine National Grid’s natural gas business and make recommendations for improvement, according to the press release. A final report from the contractor would be due by May 2014, it said.

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