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NATIONAL FUEL v. PUBLIC SERV.

No. 33.

16 N.Y.3d 360 (2011)

In the Matter of NATIONAL FUEL GAS DISTRIBUTION CORPORATION, Respondent, v. PUBLIC SERVICE COMMISSION OF THE STATE OF NEW YORK, Appellant.

Court of Appeals of New York.

Decided March 29, 2011.

Attorney(s) appearing for the Case

Peter McGowan , General Counsel, Public Service Commission of the State of New York, Albany ( Jonathan D. Feinberg , Anthony Belsito , Sean Mullany and John C. Graham of counsel), for appellant.

Whiteman Osterman & Hanna LLP, Albany ( Neil L. Levine , Alan J. Goldberg and Christopher M. McDonald of counsel), and Cullen & Dykman, LLP, Garden City ( Bruce V. Miller of counsel), for respondent.

Judges CIPARICK, READ and JONES concur with Judge GRAFFEO; Chief Judge LIPPMAN dissents and votes to reverse in a separate opinion in which Judges SMITH and PIGOTT concur.

OPINION OF THE COURT

GRAFFEO, J.

In this appeal, we consider the legal standards that apply when a utility company seeks permission from the Public Service Commission (PSC) to recoup from ratepayers certain environmental remediation costs it has incurred. We hold that when the PSC reviews a management decision of a utility to assess its prudence, the Department of Public Service (DPS) bears the initial burden...

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