RFP to Conduct Operations Audit to Examine Management Incentive Compensation Programs at Electric, Gas, and Water Utilities

The New York State Public Service Commission is seeking an independent consulting firm to conduct a focused operations audit of management incentive compensation programs across 13 electric, gas, and water utilities serving New York State. The Request for Proposals (RFP) 25-M-0043 requires a comprehensive examination of current and historical compensation information for non-union management employees, with key deliverables including analysis of compensation structures, identification of best practices, and development of recommendations for improvements. Qualified bidders must demonstrate expertise in management compensation methods, incentive programs, and performance motivation strategies. The proposal evaluation will be weighted 42.5% for technical evaluation, 15% for cost, and 42.5% for finalist interviews. Critical dates include a bidders conference on March 6, 2025, proposal submissions due by April 3, 2025 at 4:00 PM Eastern Time, finalist interviews scheduled for April 17-22, and consultant selection by May 14, 2025. The contract term is anticipated to be 12-18 months, with an initial work plan due in August 2025 and fieldwork beginning shortly after auditor selection.

No specific set-aside designations are identified for this procurement, with the RFP explicitly noting there is no Service-Disabled Veteran-Owned business requirement. The audit will cover utilities including Consolidated Edison, Orange and Rockland, National Grid companies, Central Hudson, National Fuel Gas, Rochester Gas & Electric, NYSEG, Liberty Utilities companies, Corning Natural Gas, and Veolia Water New York. While no specific budget range is provided, the consultant will be paid monthly subject to retention tied to deliverables, with payments made by the utilities after Department of Public Service approval. Post-audit work may be required at standard consulting rates plus travel expenses. All proposal and cost information will be made publicly available after selection. The Commission's broader objective is to ensure utility compensation programs drive meaningful performance improvements that benefit ratepayers, with a focus on establishing best practices for setting and reviewing compensation levels during future rate proceedings.