Law 531 Adr Analysis

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ADR Analysis Issue The issue on which this dispute is based can be dated back to Hurricane Sandy, in 2012 that disrupted a large portion of the power supply of the Eastern Coast of the United States. “When Hurricane Sandy pummeled New York City on October 29, 2012, it crippled mass transit, devastated whole neighborhoods, and triggered gas shortages and power outages that left thousands of residents without heat, hot water, or electricity” (Evans, 2013, p. 180). Recently ConEd, an electric power supply company has requested to raise the rates of electric power supply to prepare for future storms that may result in complete power outage like the one experienced in 2012. The goal of ConEd is to raise $1 billion over a period of four years. However, ConEd already received permission to increase rates to $10 per customer. ConEd wants to further raise the rates another $3 per customer. It is also known that New York’s electric power supply system is one of the most expensive in the country (Wile, 2013). Governor Cuomo has considered the increase unnecessary. He has considered and appealed that improvements to the electric supply system can be improved without the increase in the rates. The city of New York has also sided with the Governor’s opinion. ConEd specifically has expressed that without proper funding, it shall have to redesign and rethink its original reinforcement strategy that it had for updating the state’s electric power supply. The various upgrades included the installment of additional generators and making the supply lines go underground. Rule According to the New York Energy Laws, increased pricing is not permissible without the consent of the state government. Therefore, without the specific permission of the state and the city of New York, along with the consent of the Governor himself, ConEd cannot increase the prices of electricity as doing
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