NYS audit suggests Avangrid/NYSEG's practices result in higher costs, worse service quality for customers
The audit showed that Avangrid, a company providing services to 1.3 million customers and gas to 591,000 customers in New York State, used a complex corporate structure making it hard to track costs to NYSEG and RG&E. These findings could indicate that customers lack the necessary transparency to know if they're being charged more for services than they should be. The auditor recommended that NYSEG and RG&E simplify the cost process.
This is just one of 128 recommendations listed in the final draft of the audit started in 2023 by a third-party auditor of the companies. These recommendations focused on ways to provide value to NYSEG and RG&E's customers.
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The Commission ordered the companies to file a response plan to the audit within 30 days. Additionally, the Commission is requiring a response to allegations of the companies breaking PSC rules. The utilities were issued a notice of apparent violations (NOAV) which stemmed from the staff's review of information about the utilities' recent operations, giving the companies 21 days to respond to these allegations.
As for the other notable recommendations and potential violations from the auditor, the assessment found that despite having cybersecurity systems the system is not advancing as it should despite the cost increases. The auditor recommended steps be made to put in better cybersecurity planning and reporting.
Another area of concern was the company's electric operations. The audit said Avangrid hadn't implemented proper management software and still relies on spreadsheets. This understanding of asset management contributed to NYSEG's poor elect reliability performance, according to the audit. The audit recommended that Avengrid install a proper asset management system for NYSEG and RG&E.
The audit found issues with how the company handles customer services as well. The audit reported that Avangrid had issues with how it handled invoices, and notes it doesn't have appropriate controls for customer service outsourcing, among other things. The auditor recommended that Avangrid update its customer service performance indicator process documentation, create a formal override process, and enhance quality control.
The companies have until June 18, 2025, to file their implementation plans. From there the plans will be reviewed by the staff to make sure the plans address the findings from the audit and the auditor's recommendations.
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It should be mentioned that the findings from this audit are different from the ongoing audit announced by Governor Kathy Hochul in February 2025. That audit follows years of work to examine utility management structures and seeks to align utility priorities with state objectives. That audit is part of an effort from Governor Hochul's office to fight rising utility costs and protect New York consumers.
18 News reached out to NYSEG for comment on the audit. A statement from NYSEG reports that it is reviewing the audit and is looking forward to responding to the Commission. The company reported numerous changes that address some of the issues listed above.
NYSEG and RG&E stand by our record of investing millions in upgrading hundreds of gas lines across our service areas supported by rigorous, ongling 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 violations, 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.
Statement from NYSEG
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