NATIONAL GRID AUDITOR TO EXAMINE GAS PLANNING, EFFICIENCY

(The following is a reformatted version of a press release
issued by The New York State Public Service Commission and
received via e-mail. The release was confirmed by the sender.) 
June 13, 2013 
National Grid Auditor Selected 
Management Audit Will Examine Companies Gas Planning,
Operational Efficiency 
The New York State Public Service Commission (Commission) today
selected management consulting company NorthStar Consulting
Group to perform a comprehensive management and operations audit
of National Grid’s natural gas companies:  Niagara Mohawk Power
Company Gas, The Brooklyn Union Gas Company and KeySpan Gas East
Corporation.  The audit will focus on construction program
planning and operational efficiency and will evaluate the
utilities’ emphasis on risk management and storm hardening,
particularly with respect to coastal areas. 
In his 2013 State of the State Address, Governor Andrew M. Cuomo
highlighted the importance of management and operations audits
of New York’s utilities, and authorized the Commission to direct
utilities to comply with recommendations made pursuant to
management and operations audits. 
“In response to the Moreland Commission’s recommendations to
improve our management audit process, as well as Governor
Cuomo’s strengthening of the Commission’s regulatory oversight
of utilities, we have enhanced our management audit process and
staffing resources to identify improvements in utilities’
planning processes and operational efficiencies,” said
Commission Chairman Garry Brown. “The auditing process is an
essential regulatory vehicle that allows for a thorough and
focused review of a utility company’s management and operations
to identify necessary improvements.” 
The Public Service Law requires examination of the management
and operations of the major electric and gas utilities. The
examination process will emphasize an assessment of National
Grid’s New York gas operations efficiency and effectiveness in
meeting its mission, goal and objectives, particularly with
respect to performance goals and will identify any opportunities
for improvement. 
On February 13, 2013, the Commission authorized the issuance of
a Request for Proposal (RFP) for an independent third-party
consultant to conduct a comprehensive management and operations
audit of National Grid’s New York gas companies with a specific
focus on construction program planning processes and operational
efficiency.  Department Staff added several specific areas to
the audit in consideration of the Moreland Commission interim
report recommendation that the Commission undertake operational
audits in addition to management audits. 
Five management consulting firms submitted proposals to be
considered. Consulting firms were required to demonstrate, among
other things, the firm’s expertise and the experience of their
proposed personnel in performing management audits, the methods
and procedures to be employed as part of the review, and the
ability to complete the audit within budget. Upon review and
evaluation, NorthStar of Santa Maria, Calif., was chosen to
conduct the audit; the total potential cost of the audit is not
to exceed $1,212,500.  The consulting firm will report directly
to Commission staff. The three gas companies have more than 1.9
million customers statewide in total. 
The Commission’s decision today, when issued, may be obtained by
going to the Commission Documents section of the Commission’s
Web site at www.dps.ny.gov and entering Case Number 13-G-0009 in
the input box labeled “Search for Case/Matter Number.”  Many
libraries offer free Internet access. Commission orders may also
be obtained from the Commission’s Files Office, 14th floor,
Three Empire State Plaza, Albany, NY 12223 (518-474-2500).  If
you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding
this press release. 
Further Details: James Denn
James.denn@dps.ny.gov | 518.474.7080
http://www.dps.ny.gov
http://twitter.com/NYSDPS 
(sgp) NY 
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