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Small Utilities Credits Are Just the First Step, a Commission Says

On Oct. 30, much of Manhattan was without power because of damage and disruptions caused by Hurricane Sandy.Charles Sykes/SYKEC, via Associated Press On Oct. 30, much of Manhattan was without power because of damage and disruptions caused by Hurricane Sandy.

Would a credit of $3 or $6 appease utility customers who are still steaming about how long they went without power or heat after Hurricane Sandy?

New York state utilities regulators know that it wouldn't, and they want the customers to know that they know. So, before approving the credits at a hearing on Thursday, the members of the Public Service Commission insisted t hat the small credits represented just the first small step toward seeking compensation from the utilities.

“This doesn't end anything,” said Garry A. Brown, the chairman of the commission.

Indeed, Mr. Brown said the commission plans to conduct its own investigation into how utilities prepared for the storm and responded to the damage it caused. But that will come after the Moreland Commission, appointed by Gov. Andrew M. Cuomo, completes its investigation.

The Moreland Commission has issued subpoenas to Consolidated Edison and the Long Island Power Authority and has begun holding hearings on the performance of those utilities. The state regulators could levy fines of their own after their investigation next year.

The credits approved Thursday were more of a good-will gesture from the utilities, whose executives are seeking to improve the images of their companies after millions of customers lost power in the storm and many went two weeks or more without electricity or gas afterward.

Con Edison will give back about $6 million to its customers for part of the fixed monthly charge for the delivery of electricity. That amounts to $3 for each customer in Manhattan affected by the storm and $6 for each customer affected in the rest of the company's service area, which includes the rest of the city and most of Westchester County. The credits will come from the company's funds and will not cost the ratepayers, a Con Edison spokesman said.

Three other utilities in the state agreed to give similar credits worth a total of about $1.5 million to customers whose electric or gas service was disrupted by the storm. The Long Island Power Authority was not included because it is not regulated by the commission, but LIPA has proposed similar credits for its customers.

The commission also approved an extension of the waiver of any penalties customers affected by the storm would normally incur for failing to pay their bills on time. That waiver applies to customers on Long Island, in New York City and in six counties north of the city.