Final audit report: RG&E required to respond by June 9
In September 2023, the PCS used an independent, third-party auditor to perform an audit of RG&E and NYSEG. PCS said the auditor submitted a draft audit report, which has now been finalized, making 128 recommendations for the companies.
Notable findings in the audit include cost allocations and service level agreements, performance management and incentive compensation, physical cyber security, electric operations, and customer operations.
Some of the allegations include subjective incentive payouts, understanding of asset management, poor electric reliability, and inaccurate customer service performance metrics.
Both companies are now required to respond to the allegations by June 9.
Once submitted, the department staff will review the implementation plans to ensure that they plan to address the underlying findings and recommendations in the audit report. Following the review, the plans will be submitted for public comment.
Following the staff's review, public comment, and refinement from RG&E and NYSEG, the plans will be presented to the commission for approval or modification. The company's response to the NOAV will also be reviewed to determine if any additional enforcement is needed.
PCS noted that this audit is separate and apart from the utility management compensation audit announced by Governor Kathy Hochul in February.
The companies combined serve 1.3 million customers electric and 591,00 customers gas in New York State.
Full statement from RG&E:
We respect the hard work of the Public Service Commission (PSC). We are currently reviewing and evaluating the Management Audit Report and today's management audit order issued by the Commission and look forward to responding. NYSEG and RG&E stand by our record of investing millions in upgrading hundreds of gas lines across our service areas supported by rigorous, ongoing inspections performed by our dedicated field crews. We have changed our management structure in NYSEG and RG&E, with staff with only New York responsibilities reporting directly to the New York CEO and President to better serve the specific needs of our operating companies. As a result, our customer service and billing performance has also seen significant improvement. Hundreds of new team members have been added, less than one percent of the 3 million bills issued require any adjustments, and customer service has slashed wait times to less than 30 seconds. Regarding any notice of potential violation, we look forward to responding with clear facts that will show our companies have fully complied with all laws, Commission orders, and regulations. These are real actions with real positive results for our customers, and we firmly stand behind our record, our people, and our continued commitment to delivering safe, reliable energy to millions of New Yorkers every day.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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