New York State Public Service Commission begins management, operations audit of National Grid

The New York State Public Service Commission (PSC) recently began a management and operations audit of National Grid, which will focus on construction program planning and operational efficiency.

The audit includes three subsidiaries of National Grid USA collectively referred to as National Grid: Niagara Mohawk Power Corporation, The Brooklyn Union Gas Company or KEDNY, and KeySpan Gas East Corporation or KEDLI.

“The audit will include an assessment of the utilities’ readiness to respond to the Reforming the Energy Vision initiative and closely examines how the utilities plan for and manage information systems projects,” Commission Chair John B. Rhodes said. “The audit will also address issues from previous management audits that require follow-up review, such as organizational structure, project estimating processes and work management processes.”

This audit is a second cycle management and operations audit. The commission has instituted two statewide operations audits of the utilities in recent years. The first audit evaluated the completeness and accuracy of the utilities’ performance metrics. The second audit examined the utilities’ internal and contractor resources.

Commission staff is expected to recommend an independent consulting firm to the PSC to conduct the audit at the Sept. 13, 2018 Session. The final report is expected in September 2019.

In the 2013 State of the State Address, Gov. Andrew M. Cuomo emphasized the need for management and operations audits of New York utilities. Cuomo also introduced, and later signed, legislation requiring utilities to file plans for implementing audit recommendations and giving the PSC the authority to enforce utility compliance with the implementation plans.

This audit is the fourth comprehensive audit since Cuomo’s address, and three additional audits are underway.