PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following action:

On 3/9/17, the PSC adopted an order addressing National Fuel Gas Distribution Corporation's (NFG) comments regarding legal and procedural issues of the audit process.

Comments on legal and procedural issues of the audit process.

To address NFG's comments on legal and procedural issues of the audit process.

The Commission, on March 9, 2017, adopted an order addressing National Fuel Gas Distribution Corporation's (NFG) comments regarding legal and procedural issues of the audit process. The Commission decided that the Overland Audit (Auditor) was conducted as a management and operations audit provided for in Public Service Law Section 66(19); that the Commission properly assessed the audit costs directly on the utilities; that an order directing the filing of plans does not bypass any requirements of the State Administrative Procedure Act (SAPA) or the New York State Constitution; that the Commission did not delegate its rule-making authority to the audit Staff or a consultant; that the preliminary substantive comments that NFG made to Overland in February 2015 were fully considered by both the Auditor and the Commission; and that the directives contained in the order satisfied all requirements of SAPA and due process, subject to the terms and conditions set forth in the order.

No changes.

John Pitucci, Public Service Commission, Three Empire State Plaza, Albany, New York 12223, (518) 486-2655, email: [email protected] An IRS employer ID no. or social security no. is required from firms or persons to be billed 25 cents per page. Please use tracking number found on last line of notice in requests.