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State of New York Office of the Inspector General
Investigation of Employee Misconductat the Department of Public Service
July 2012Catherine Leahy ScottActing State Inspector General
 
 
STAFF FOR THIS INVESTIGATION AND REPORTLEONARD COHEN
Chief Counsel
PHILIP FOGLIA
Special Deputy Inspector General
BERNARD COSENZA
Deputy Inspector General for Investigations
FELISA HOCHHEISER
Director of Investigative Reporting (New York City)Special Counsel
JESSICA E. SILVER
Administrative and Special Investigative Counsel
JAMES GIBSON
Investigator
ANGELUS OKEKE
Investigative Auditor
 
SUMMARY OF FINDINGS
The Inspector General determined that from 2002 to 2010 several employees inthe New York State Department of Public Service, Office of Electric, Gas, and Water,Safety – Electric, Gas, and Steam Section improperly received gifts totaling more than$7,000 in the form of meals and games of golf from regulated entities. The InspectorGeneral’s investigation further determined that two Department of Public Service (DPS)employees violated DPS policy by sharing confidential information, which includeddrafts of documents to be submitted to the New York State Public Service Commission.The Public Service Commission (PSC) is statutorily designated to regulate utilitycompanies providing service within New York State.The Inspector General recommended that DPS require all employees to attend amandatory ethics training program once per year. Specifically, DPS should focus on theobligation of DPS employees as public servants to abide by departmental policies,particularly with respect to the acceptance of gifts by state employees and the sharing of confidential information. The training should also include the obligation of employees toreport malfeasance or misconduct to the Inspector General’s Office pursuant to ExecutiveLaw Article 4-A Section 55.The Inspector General recommended that the Public Service Commission requireregulated entities to train their staff on the proscription against offering gifts to publicemployees.The Inspector General provided the findings in this report to DPS for review andappropriate action. In response, DPS has mandated training for all employees and majorutility companies; commenced an enforcement action against a utility company forviolating New York State Public Service Law resulting in a $1.667 million settlement toNew York State subject to PSC approval; and initiated disciplinary action against threeDPS employees. Two of the three employees resigned as a result of the disciplinaryaction, and disciplinary charges against the third employee are pending. The InspectorGeneral is also providing a copy of this report to the New York State Joint Commissionon Public Ethics, which has jurisdiction over violations of the Public Officers Law.
ALLEGATION
On, January 20, 2011, the Department of Public Service reported an allegation tothe Inspector General that two employees of the Office of Electric, Gas, and Water,Safety - Electric, Gas, and Steam Section had accepted gifts from a regulated utilitycompany, in contravention of the Public Officers Law and DPS policy. In addition,during this investigation, DPS reported an additional allegation to the Inspector Generalthat members of the Electric, Gas & Steam Section improperly provided a confidentialdraft report to an outside consultant in violation of the Public Service Law, the PublicOfficers Law and DPS policy.
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