Public Service Commission’s letter to Iberdrola
The Liberty Consulting Group of Quentin, Pa., will conduct a management audit of Iberdrola S.A. and its New York affiliates, including Rochester Gas and Electric Corp. and New York State Electric & Gas Corp.
The state Public Service Commission, which made the announcement Thursday, said public service law provides for examinations of the management and operations of major electric and gas utilities.
This audit will focus on the Iberdrola companies’ construction program planning and operational efficiency, the PSC said.
On Dec. 16, the PSC authorized the issuance of a request for proposals from independent third-party consultants.
Seven management consulting firms submitted proposals for consideration, the PSC said. Liberty, which will report directly to commission staff, was selected as the most qualified based on factors such as expertise and experience, demonstrated understanding of the commission’s objectives and cost.
The total potential cost of the audit could be up to about $1.54 million, the PSC said.
Although Liberty’s focus will be on the construction program planning and operational efficiency of the New York operating utilities, “issues related to corporate governance, distant ownership and affiliate transactions add more complexity than is typically seen in management audits in New York,” the PSC said.
Additional emphasis also will be put on developing cost-benefit analyses to better ensure accountability on both the part of Liberty and the utility implementing the recommendations.
The audit is expected to take several months to complete, PSC spokesman James Denn said.
According to filings with the PSC, the other consultants that submitted proposals for the project were: River Consulting Group of Clayton, Ga.; Shaw Consultants International of Cambridge, Mass.; Blue Ridge Consulting Services of Greenville, S.C.; Vantage Energy Consulting of Cudjoe Key, Fla.; Schumaker & Co. of Ann Arbor, Mich.; and NorthStar Consulting Group of Santa Maria, Calif.
Liberty provides consulting services to utility managers, executives and regulators, according to its website.
a12iggymom's Blog 