Community Corner
PSEG Claims Insurers Shortchanging It On Sandy Recovery Costs
If court finds for insurance firms, ratepayers could wind up paying the $400M difference
by Tom Johnson, NJSpotlight.com
The question of who will pay the cost of rebuilding the power grid after Hurricane Sandy is spilling into the courts.
In a lawsuit filed in Superior Court in Essex County last month, Public Service Enterprise Group and three of its subsidiaries accused 10 insurance companies of shortchanging them on coverage that should have reimbursed them $456 million for damages to their power grid.
Find out what's happening in Teaneckwith free, real-time updates from Patch.
Instead, the insurers say they will only cover $50 million in payouts, arguing that provisions in the policies restrict reimbursements above that amount in specific flood zones, a matter disputed by PSEG and its subsidiaries in the 19-page lawsuit filed on June 18.
Find out what's happening in Teaneckwith free, real-time updates from Patch.
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