Con Edison Faces $25 Million Dollar Penalty for Manhattan Outage

[Mbrooke]

Posted on another forum but most fitting here.

https://www.tdworld.com/disaster-re...n-brooklyn-outages?oly_enc_id=8039F4598189E6C

As much as I think Con Ed should be held accountable for other issues, I don't think its fair in this case. Wires got left out and that is inevitable from time to time IMO.

 

[Mbrooke]

FWIW, there is currently another massive outage (that was about 3 times larger customer wise) being investigated that took place on August 7 2020 but was given limited coverage:

https://abc7ny.com/nyc-power-outage-blackout-upper-west-side-east/6359201/

Not sure this outage played any role in the penalties decision.

FWIW, as best as I can gather roughly same thing took place as with West 49th st. At least half a dozen or more 345kv positions cleared at Rainy Substation dropping 5 138kv feeders which supply the East 75th st and West 110th st substations. A total of 15 138-13.8kv 65MVA transformers were probably de-energized.

Transmission feeds to 75th and 110th:

Rainy:

 

[thermionic1]

A funny thing with those penalties..who really pays for them?

 

[davidbeach]

Shareholders.

I’ll see your silver lining and raise you two black clouds. - Protection Operations

 

[cranky108]

People who had nothing to do with the outage. Shareholders, or customers.

 

[stevenal]

While I'm not familiar with NY, regulated investor owned utilities where I live need to make their case to a Public Utility Commission. They might find it difficult to role fines into customer rates.

 

[cranky108]

What would happen if the utility is a non-profit, or government owned? Who would pay?

Same thing with NERC fines. Who pays?

And it will likely be lowered.

Seems like mostly a face saving thing for the PUC, so they can say they are doing something.
More likely a coverup for a bad policy from the PUC.

 

[stevenal]

As I recall, the last decision was that federal power providers were to follow NERC, but could not be fined by a private corporation such as NERC. Fines levied against non-profits and municipalities are ultimately paid by customers.

 

[cranky108]

My point is corporations don't really pay fines or taxes, they just get passed on to people. And some of those people may have a hard time with money.
So who are they really hurting?
Fines should be placed on people who do bad things.

Who pays if the PUC makes a bad call?

 

[davidbeach]

If an investor owned utility is fined by the PUC, and the PUC denies rate recovery (as would be expected), the fine is paid by the shareholders, aka the owners. The recourse for the shareholders is to replace the board, who could then replace operational management. It would be different for Munis, Coops, PUDs, etc. where there is no distinction between rate payers and shareholders.

I’ll see your silver lining and raise you two black clouds. - Protection Operations