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Karben calls on Con Ed to insulate ratepayers from settlement costs
Mid-Hudson News, November 24, 2004
Assemblyman Ryan Karben of Rockland, a member of the Assembly Energy Committee, yesterday commended Con Ed for reaching a settlement with the family of Jodi Lane, a New York City resident who was killed after getting electrocuted while stepping on a manhole cover on January 16, 2004. The settlement, which was announced yesterday, is for an undisclosed amount. In the wake of the announcement, Karben renewed his call for legislation to protect ratepayers from paying for settlements based on Con Ed's negligence.
"While I am glad that Con Ed will provide the Lane family with a monetary award in the aftermath of Jodi Lane's tragic death, it is important to make certain that it is the utility that actually pays the bill, not the ratepayer," said Karben, "This settlement makes it an even dozen that Con Ed has reached since January of 2000 in cases of alleged electric shock. The utility's negligence is costing them a lot of cash, and we need to know that they, not their consumers, are paying for their mistakes."
Karben said that utility companies must be held to a higher standard when it comes to protecting the public and renewed his call to require utility companies to be more forthcoming concerning litigation and settlements that arise out of cases of electric shock. In April of 2004, President Kevin Burke of Con Ed revealed in a letter to Karben that the utility has settled 11 cases of alleged electric shock since January 2000.
Because Con Ed's rates were based on 1999 accounting data, Karben said ratepayers have not yet had to pay for these settlements. But he said that ratepayers needed new legislation to protect them in the future from paying for these or other settlements based on Con Ed's negligence.
The bill introduced by Karben would preclude the Public Service Commission, which sets Con Ed's rates, from using the electrocution settlements in setting future rates. Pursuant to his legislation, the Public Service Commission would be prohibited from using costs arising out of electrocution settlements in setting future rates for utilities. It would also exclude any litigation in which a utility company is found negligent from the costs the company can seek from consumers
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