Amid a growing storm of criticism over the Long Island Power Authority’s response to Hurricane Sandy, LIPA chief operating officer Michael Hervey resigned on Tuesday night, effective at the end of the year.
In a statement on Hervey’s resignation, LIPA chairman Howard Steinberg said, “Mike has provided 12 years of valuable service to LIPA, including taking on the responsibility to perform the functions of CEO of the organization over the past two years. Mike has played a leadership role in connection with the planned structural changes at LIPA going forward which will result in better service and accountability to LIPA’s customers in the years ahead.”
Hervey’s resignation followed Gov. Andrew Cuomo’s announcement on Tuesday afternoon that he was creating a 10-member commission “to investigate the response, preparation, and management of New York’s power utility companies” during major storms over the past two years, including Hurricanes Sandy and Irene, the Nor’easter that followed Sandy and Tropical Storm Lee.
“From Hurricane Irene, Tropical Storm Lee, to Hurricane Sandy, over the past two years New York has experienced some of the worst natural disasters in our state’s history,” Gov. Cuomo said. “As we adjust to the reality of more frequent major weather incidents, we must study and learn from these past experiences to prepare for the future.”
The commission, which will be led by former state Attorney General Robert Abrams and Benjamin Lawsky, one of Cuomo’s top lieutenants and currently head of the state Department of Financial Services, will have subpoena powers and authority to examine witnesses under oath under the state’s Moreland Commission law that provides for such investigative authority. Among other members named to the commission was Nassau County District Attorney Kathleen Rice.
Prior to Cuomo’s announcement on Tuesday, Melville attorney Kenneth Mollins filed a class action suit in State Supreme Court in Nassau County against the Long Island Power Authority and National Grid alleging gross negligence, carelessness and reckless disregard against the utility companies.
Mollins said he planned to subpoena LIPA records in the discovery process for the class-action suit, which he said was likely the largest action of its kind filed to date.
Mollins said the suit was prompted by public “outrage over the neglect and to the total lack of management” at LIPA and National Grid.
“We brought a lawsuit for two reasons: accountability and damages,” he said. “The people who are being stepped on because of the antiquated power system, they have a need to he heard.”
The lawsuit states that total damages are to be determined and Mollins said those damages are still mounting as power outages from the storm continue.
“People need to be held accountable and that’s what we’re going to do,” Mollins said. “We’re going to turn the lights on everything, including how they didn’t help people after the storm. If there’s criminal liability we want arrests and fines if they’re found to be applicable.”
The suit charges that LIPA’s inability to provide power starting on Oct. 29 during Hurricane Sandy was due to its “failure to replace an outdated, obsolete outage management system which lacks the ability to manage large scale outages.” It also alleges that LIPA ignored a 2006 state Department of Public Service recommendation to replace LIPA’s outdated outage system.
The suit further charges that LIPA “neglected vital maintenance” including tree trimming and transmission pole inspection.”
Mollins’ suit also contends that LIPA “under-budgeted” for large-scale outages and “failed to reconfigure the substations which transfer power to thousands of homes to minimize flood damage” with “reckless disregard” for its customers.
The suit also focuses on LIPA’s communications with customers, stating that LIPA “disseminated fraudulent misinformation relative to existing conditions, anticipated corrections, dates of restoration of electricity and other necessary information to the general public.”
Mollins said Cuomo’s call for an investigation will “absolutely” make the discovery process for the class action an easier one.
“Now he’s gotten to the point where we’ve gotten to,” Mullins said, “where people have gotten so frustrated they need to look into it.
But Mollins noted that LIPA is part of the state governmental structure.
So Mollins said he is asking the state Inspector General’s office, which oversees LIPA, to do complete investigation into how money’s being spent by the public utility.
In his executive order forming the commission, Cuomo said the commission’s ultimate objective is to recommend legislative, policy and regulatory changes, “as well as reforms as deemed appropriate in utility structure, management and practices to best protest and serve the public’s interest.”
He directed the commission to produce a final report on its findings, but also said it may issue “interim, preliminary and periodic reports and recommendations.”
Cuomo also directed every state governmental entity to cooperate and furnish information requested by the commission.
Attempts to reach LIPA and National Grid for comment on the class action suit and Cuomo’s creation of the investigative commission were unavailing.
