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Con Edison Media Relations
For Immediate Release: November 12, 2008
5:30 p.m.


NEW YORK – The New York State Public Service Commission today approved a $37 million settlement with Con Edison to resolve the Commission’s prudence investigation evaluating the company’s actions and practices relating to the Lexington Avenue – East 41st Street steam event. Under the settlement, Con Edison will not seek to recover from customers some $37 million in costs related to the incident.

The July 18, 2007 steam incident in midtown Manhattan was a difficult time for many of our customers. Con Edison sincerely regrets the incident and the substantial and profound impacts the incident had on our customers and the public.  The company is committed to learning from this experience in order to strengthen the safety and reliability of the steam system and has implemented measures to enhance its system.

Con Edison has implemented an action plan in conjunction with experts’ findings that includes replacement of all 1,654 steam traps on the system with an improved design; enhanced rain response procedures to include physical inspection of manholes in flood or vapor-prone areas; new repair oversight protocols; remote monitoring; research and development on steam trap design, as well as new steam trap inspection and testing procedures.

The environmentally-friendly steam system serves major institutions in Manhattan below 96th Street, including museums, hospitals, government and commercial buildings, skyscrapers, as well as apartments and private residences.  It supplies heat, air conditioning, humidification, and sterilization services. Con Edison’s steam system is the largest  in the United States, larger than the next nine steam systems combined.

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