Largest Electric Utility In NJ Suing Insurance Companies In Wake Of Sandy Damage
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By David Madden
TRENTON, N.J. (CBS) – New Jersey’s largest electric utility is going after 10 insurance companies in court. At issue is the amount the utility should be paid in light of damage wrought by Hurricane Sandy last fall.
Public Service Enterprise Group is the business entity behind Public Service Electric and Gas.
They want some $450 million over the $50 million the insurance carriers are offering for damage done to substations and power generators in central and northern New Jersey.
“We are looking for the court to give us a declaration of the proper interpretation of our insurance policies. The coverage dispute that we have is whether or not certain flood zone limits in property coverage apply to the property damage that we experienced during Sandy,” says Karen Johnson , spokeswoman for PSE&G.
Call it a flood and the lower payment would apply, but the utility is labeling it a “wind driven storm surge” and that would qualify for higher reimbursement.