Clash on audit of National Grid storm costs

The Long Island Power Authority's new request that National Grid review all 2010 storm costs drew skepticism from lawmakers, who want the $223 million in charges scrutinized by an outside auditor.

"It's like putting the fox in the chicken house," said Suffolk Legis. Wayne Horsley (D-Babylon), who chairs a legislature committee on energy. "For the same reason we called for broad oversight of LIPA, a third-party audit of storm costs is required."

LIPA last year spent $223 million responding to storms, including a controversial $34 million spent amassing 1,600 outside workers and equipment in advance of Hurricane Earl.

LIPA called for the more recent National Grid review after an internal audit turned up instances of improper or undocumented charges, including alcoholic beverages, transportation charges and undocumented hours. LIPA Monday said it will supervise the National Grid review, including with outside consultants if necessary.

"At the end of the day, it's our expectation that National Grid render an accurate bill," said Michael Hervey, LIPA chief operating officer. "What we're asking them to do is what they should have done in the first place. . . . Once that's done, we'll still audit."

John Bruckner, president of National Grid's LIPA business, said the company is "confident that we can perform a thorough review in concert with LIPA's auditors and we will work with them to provide the cost substantiation to ensure the validity of the expenses."

But lawmakers said it's not enough. "Asking National Grid to audit itself is a rather strange concept of accountability," said state Assemb. Robert Sweeney (D-Lindenhurst), who has sponsored a bill seeking regulatory oversight of LIPA rate increases. "It's just another item on a long list of reasons why oversight of LIPA is needed."

Emily DeSantis, a spokeswoman for state Comptroller Thomas DiNapoli, who in December issued a blistering report of LIPA charges, said Monday that the probe is ongoing. "Comptroller DiNapoli has requested a detailed accounting and justification of actual costs incurred during Hurricane Earl preparations, which we have not yet received," she said. "As LIPA's own limited review shows, more oversight is needed to prevent unnecessary, discretionary spending."

One ratepayer was particularly displeased to hear LIPA had approved the expense of thousands of dollars to buy baseball hats for National Grid crews who responded to the March 2010 nor'easter.

"Are you kidding me? Baseball caps for LIPA employees, and that's 'completely appropriate'?" said Carl Peyser of Melville.