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New York Attorney General launches probe into utilities

A National Grid crew from Fredonia, N.Y. , repair power lines in Port Washington, N.Y., Wednesday Nov. 7, 2012. The lines were damaged during Superstorm Sandy. (AP Photo/Kathy Kmonicek)
November 15, 2012 2:51:34 AM PST
New York State Attorney General Eric Schneiderman has launched an investigation into the performance of LIPA and Con Edisdon during superstorm Sandy.

According to a source familiar with the probe, Schneiderman has issued subpoenas to LIPA and Con Ed seeking documentation on their preparedness, response and communications before and after the storm.

Schneiderman is looking into whether the companies violated the New York's Public Authorities Law.

It's the second investigation of power companies announced this week. On Tuesday, Governor Cuomo established a commission to examine and recommend reforms of LIPA, NYPA, NYSERDA, and the Public Service Commission.

Unlike the Moreland Commission, Schneiderman can prosecute or fine the utilities. They could even seek damages on behalf of ratepayers, if they find cause to do so.

The Attorney General's investigation began November 5th.

A Con Ed spokesman issued a statement saying "We are cooperating with the Attorney General's request. We look forward to reviewing the company's storm preparations and response with the Attorney General and all interested parties."

LIPA Spokeswoman Elizabeth Flagler released a statement saying, "We have reviewed the AGs subpoena and intend to comply with it in all respects."

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