11/15/2012

Utilities' handling of Sandy probed

  • Long Island Power Authority and Consolidated Edison being investigated
  • New York Attorney General Eric Schneiderman's office subpoenaed LIPA and ConEd
  • Source: Office wants to know what they did to prepare and handle aftermath
  • LIPA and ConEd have indicated they will cooperate with the investigation

New York (CNN) -- New York Attorney General Eric Schneiderman is investigating whether New York utilities Long Island Power Authority and Consolidated Edison adequately prepared for and responded to Superstorm Sandy, according to a source with knowledge of the investigation.

On Wednesday, the attorney general's office subpoenaed LIPA and ConEd requesting information about what they did to brace their systems ahead of the storm and their management in its wake, the source said.

The investigation, which began November 5, is examining whether ConEd, as a publicly traded investor-owned utility company, breached the Public Service Law, which requires gas and electric companies to "supply safe and adequate service."

Honoré: Sandy recovery is stumbling

Schneiderman's office is questioning whether LIPA, which was created under the Public Authorities law, violated its legal obligations to ensure a safe and dependable flow of electricity.

The attorney general is also studying disclosure statements LIPA made to bondholders regarding the ability of their power systems to weather severe storms, the source said.

iReporter Pankaj Purohit lives five minutes from the boardwalk on Essex Street in Jersey City, New Jersey, which began flooding even before Superstorm Sandy's rains came. iReporter Pankaj Purohit lives five minutes from the boardwalk on Essex Street in Jersey City, New Jersey, which began flooding even before Superstorm Sandy's rains came.
iReporter Jon Ferrari took this photograph Monday afternoon, October 29, in Jersey City showing a fully uprooted tree. iReporter Jon Ferrari took this photograph Monday afternoon, October 29, in Jersey City showing a fully uprooted tree.
iReporter Patrick Day snapped this photo from a helicopter while flying over the New Jersey shoreline about four days after Sandy hit.iReporter Patrick Day snapped this photo from a helicopter while flying over the New Jersey shoreline about four days after Sandy hit.
FunTown Amusement Pier in Seaside Heights, New Jersey, was washed away. The roller coaster was lost.FunTown Amusement Pier in Seaside Heights, New Jersey, was washed away. The roller coaster was lost.
Yards are buried in about 4 feet of sand in Holgate on Long Beach Island.Yards are buried in about 4 feet of sand in Holgate on Long Beach Island.
A collapsed house near the Barrier Islands. A collapsed house near the Barrier Islands.
Sea Bright residents were not allowed back to their neighborhood on Thursday, November 1, and were told they would not be allowed back for another week or so due to gas leaks.Sea Bright residents were not allowed back to their neighborhood on Thursday, November 1, and were told they would not be allowed back for another week or so due to gas leaks.
On Halloween, residents in Morristown lined up to fill containers with gasoline. While not directly on the coast, Morristown experienced major power outages and some damage from heavy winds and rains brought on by the storm. On Halloween, residents in Morristown lined up to fill containers with gasoline. While not directly on the coast, Morristown experienced major power outages and some damage from heavy winds and rains brought on by the storm.
Eric Nelms was driving to the store in Orange on Tuesday, October 30, when he took this picture. He saw many trees down in his neighborhood, and now that the weather has calmed down, people have begun clearing their yards.Eric Nelms was driving to the store in Orange on Tuesday, October 30, when he took this picture. He saw many trees down in his neighborhood, and now that the weather has calmed down, people have begun clearing their yards.
This panoramic photo from Hoboken was taken Tuesday. iReporter Michael Small was evacuated from Lower Manhattan and went to a stay with a friend in Hoboken. Hoboken flooded, lost power and the waters smelled "like gas and chemicals," he said. He is now back in New York.This panoramic photo from Hoboken was taken Tuesday. iReporter Michael Small was evacuated from Lower Manhattan and went to a stay with a friend in Hoboken. Hoboken flooded, lost power and the waters smelled "like gas and chemicals," he said. He is now back in New York.
John Swords and his neighbors in Hoboken were limited to one outlet -- powered by their apartment building's generator -- to charge their phones. They were told power would be restored in seven days.John Swords and his neighbors in Hoboken were limited to one outlet -- powered by their apartment building's generator -- to charge their phones. They were told power would be restored in seven days.
iReporter Jonathan Otto took this photo from the 14th Street viaduct over the corner of Jefferson and 14th streets in Hoboken on Tuesday. "The Hudson River has turned Hoboken, New Jersey, into one big pond!" he said.iReporter Jonathan Otto took this photo from the 14th Street viaduct over the corner of Jefferson and 14th streets in Hoboken on Tuesday. "The Hudson River has turned Hoboken, New Jersey, into one big pond!" he said.
Residents try to siphon gasoline out of their flooded car to use in a generator on Thursday in Hoboken. Power had still not been restored to most of the city three days after Sandy's storm surge flooded the area.
Residents try to siphon gasoline out of their flooded car to use in a generator on Thursday in Hoboken. Power had still not been restored to most of the city three days after Sandy's storm surge flooded the area.
Loader buckets were lifted to the second stories and even the attics of homes in Toms River. Victims retrieved were then transferred to the beds of dump trucks to be carried to high ground.
Loader buckets were lifted to the second stories and even the attics of homes in Toms River. Victims retrieved were then transferred to the beds of dump trucks to be carried to high ground.
What Sandy did to New Jersey
What Sandy did to New Jersey
What Sandy did to New Jersey
What Sandy did to New Jersey
What Sandy did to New Jersey
What Sandy did to New Jersey
What Sandy did to New Jersey
What Sandy did to New Jersey
What Sandy did to New Jersey
What Sandy did to New Jersey
What Sandy did to New Jersey
What Sandy did to New Jersey
What Sandy did to New Jersey
What Sandy did to New Jersey
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What Sandy did to New JerseyWhat Sandy did to New Jersey
Power company sued over Sandy response
A New York police officer jumps over a large crack in a boardwalk in Brooklyn on Wednesday, November 14. The boardwalk was damaged by the storm surge from Hurricane Sandy. See photos of the immediate aftermath of Sandy.A New York police officer jumps over a large crack in a boardwalk in Brooklyn on Wednesday, November 14. The boardwalk was damaged by the storm surge from Hurricane Sandy. See photos of the immediate aftermath of Sandy.
Insurance claims adjusters walk past burned-out houses Wednesday in the Breezy Point section of Queens, New York. A fire that broke out in the neighborhood during the storm destroyed more than 100 homes.Insurance claims adjusters walk past burned-out houses Wednesday in the Breezy Point section of Queens, New York. A fire that broke out in the neighborhood during the storm destroyed more than 100 homes.
A family friend of a drowning victim of Superstorm Sandy looks through household debris in New York on Tuesday, November 13.A family friend of a drowning victim of Superstorm Sandy looks through household debris in New York on Tuesday, November 13.
A man looks through the home of a drowning victim Tuesday.A man looks through the home of a drowning victim Tuesday.
Children wait to board buses to temporary schools in the Rockaway Beach neighborhood of Queens, New York, on Tuesday. The Rockaways peninsula was hit especially hard when Sandy barreled into the East Coast on October 29, unleashing a record storm surge that flooded low-lying areas and fierce winds that toppled trees and power lines.Children wait to board buses to temporary schools in the Rockaway Beach neighborhood of Queens, New York, on Tuesday. The Rockaways peninsula was hit especially hard when Sandy barreled into the East Coast on October 29, unleashing a record storm surge that flooded low-lying areas and fierce winds that toppled trees and power lines.
A home damaged by Sandy is seen in Union Beach, New Jersey, on Monday, November 12. A home damaged by Sandy is seen in Union Beach, New Jersey, on Monday, November 12.
A resident of Breezy Point in Queens walks past houses destroyed by fire during Sandy on Monday. A resident of Breezy Point in Queens walks past houses destroyed by fire during Sandy on Monday.
Shoes are set out to dry Monday on the steps of a house in an area that was completely flooded on the south side of Staten Island in New York City.Shoes are set out to dry Monday on the steps of a house in an area that was completely flooded on the south side of Staten Island in New York City.
Dale Freeman stands in his water-damaged apartment in a public housing building that still doesn't have power on Monday in Brooklyn. About 58,000 customers in the Rockaways, Long Island and Brooklyn require more extensive repairs before electricity can be restored. Dale Freeman stands in his water-damaged apartment in a public housing building that still doesn't have power on Monday in Brooklyn. About 58,000 customers in the Rockaways, Long Island and Brooklyn require more extensive repairs before electricity can be restored.
Residents who returned to their damaged homes line up for a hot meal served from a Red Cross vehicle on Samson Avenue in Seaside Heights, New Jersey, on Monday.Residents who returned to their damaged homes line up for a hot meal served from a Red Cross vehicle on Samson Avenue in Seaside Heights, New Jersey, on Monday.
A home damaged by Sandy lists in Mantoloking, New Jersey, on Monday.A home damaged by Sandy lists in Mantoloking, New Jersey, on Monday.
One room has power Monday in Rockaway, where many areas are still without electricity. "If you don't have your power back, it probably means power can't be restored to your home at this time," New York Gov. Andrew Cuomo said Monday afternoon.One room has power Monday in Rockaway, where many areas are still without electricity. "If you don't have your power back, it probably means power can't be restored to your home at this time," New York Gov. Andrew Cuomo said Monday afternoon.
Debris strewen by Superstorm Sandy sits piled outside a damaged home in Mantoloking, New Jersey, on Monday.Debris strewen by Superstorm Sandy sits piled outside a damaged home in Mantoloking, New Jersey, on Monday.
People line up to receive donated items from Catholic Charities of Brooklyn and Queens at Visitation of the Blessed Virgin Mary Catholic Church in Brooklyn on Monday.People line up to receive donated items from Catholic Charities of Brooklyn and Queens at Visitation of the Blessed Virgin Mary Catholic Church in Brooklyn on Monday.
People gather for donated food beneath a spotlight in an area still without power on Monday in Rockaway.People gather for donated food beneath a spotlight in an area still without power on Monday in Rockaway.
Roofers repair damage Monday on a home in the Annadale neighborhood of Staten Island.Roofers repair damage Monday on a home in the Annadale neighborhood of Staten Island.
An SUV sits atop the debris from a home in Mantoloking, New Jersey, on Monday.An SUV sits atop the debris from a home in Mantoloking, New Jersey, on Monday.
A woman makes her way past trash piles in Lower Manhattan on Monday. A woman makes her way past trash piles in Lower Manhattan on Monday.
A man looks through donated clothes and supplies at nightfall Monday in Rockaway.A man looks through donated clothes and supplies at nightfall Monday in Rockaway.
Long, slow recovery from Superstorm Sandy
Long, slow recovery from Superstorm Sandy
Long, slow recovery from Superstorm Sandy
Long, slow recovery from Superstorm Sandy
Long, slow recovery from Superstorm Sandy
Long, slow recovery from Superstorm Sandy
Long, slow recovery from Superstorm Sandy
Long, slow recovery from Superstorm Sandy
Long, slow recovery from Superstorm Sandy
Long, slow recovery from Superstorm Sandy
Long, slow recovery from Superstorm Sandy
Long, slow recovery from Superstorm Sandy
Long, slow recovery from Superstorm Sandy
Long, slow recovery from Superstorm Sandy
Long, slow recovery from Superstorm Sandy
Long, slow recovery from Superstorm Sandy
Long, slow recovery from Superstorm Sandy
Long, slow recovery from Superstorm Sandy
Long, slow recovery from Superstorm Sandy
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Photos: Long, slow recovery from Superstorm SandyPhotos: Long, slow recovery from Superstorm Sandy
Rep. Israel: LIPA failures 'outrageous'
Group rescues lost pets after Sandy

Elizabeth Flagler, a spokeswoman for LIPA, said in an e-mail to CNN, "We have reviewed the AGs subpoena and intend to comply with it in all respects."

Joy Faber, a spokeswoman for ConEd, said the company is cooperating with the investigation.

"We look forward to reviewing the company's storm preparations and response with the Attorney General and all interested parties," she said.

On Tuesday, a lawsuit was filed by two residents, claiming LIPA and its partner, National Grid, committed "gross negligence, breach of contract, and fraud," according to attorney Ken Mollins, who is representing the plaintiffs.

Also on Tuesday, amidst heavy criticism of his company's handling of the storm, Mike Hervey, chief operating officer of LIPa, said he would resign, effective at the end of the year.

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CNN's Randi Iaboni contributed to this report

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