Suite 402

1400 Old Country Road

Westbury, NY 11590
516.876.0066 phone
516.876.1068 fax

Memorandum

To: Bob Reith, KSE

From: Laurie Oppel

Date: March 10, 2011

Re: LIPA 2010 Storm 18, Invoice 1- Questions

The total unsubstantiated or disputed charges in Invoice SLIPA1000418 for 2010 Storm 18
Invoice 1 is $5,373,511.14.

Other Employee Cash Payments (132)

Substantiation for costs not provided ($2,264.95).

Other Materials Purchased (264)

The following costs were not substantiated:

Invoice Contractor Bates Page Amount Not Reason Not Substantiated

Number Substantiated
Rental of luxury Mercedes transports and
buses between hotel and staging area
76 Brilliant Transportation LTD 4146-4153 13,872.50 seems excessive. (Mercedes @ $175/hour)
Rental of luxury Mercedes transports and
buses between hotel and staging area
77 Brilliant Transportation LTD 4154-4161 10,700.00 seems excessive. (Mercedes @ $175/hour)
Rental of luxury Mercedes transports and
buses between hotel and staging area
82 Brilliant Transportation LTD 4162-4182 135,846.50 seems excessive. (Mercedes @ $175/hour)
Total 160,419.00

Third Party Costs (300, 310, 313)

The following costs were not substantiated:

Invoice Contractor Bates Page Amount Not Reason Not Substantiated

Number Substantiated
165960 Commercial Bldg. Maint. 4002-4006 221.00 Timesheets or other substantiation not provided
166015 Commercial Bldg. Maint. 4007-4012 1,224.00 Timesheets or other substantiation not provided
166016 Commercial Bldg. Maint. 4013-4021 612.00 Timesheets or other substantiation not provided
166091 Commercial Bldg. Maint. 4022-4026 102.00 Timesheets or other substantiation not provided
 Memo to Bob Reith, KSE
LIPA 2010 Storm 18, Invoice 1 Questions
March 10, 2011
Page 2 of 9

58910 Pro Unlimited 4062-4066 2,361.55 Timesheets or other substantiation not provided
58826 Pro Unlimited 4067-4072 4,445.74 Timesheets or other substantiation not provided
59078 Pro Unlimited 1784-1787 677.15 Timesheets or other substantiation not provided
59078 Pro Unlimited 2303-2310 17,065.52 Timesheets or other substantiation not provided
59078 Pro Unlimited 3974-3977 630.48 Timesheets or other substantiation not provided
59343 Pro Unlimited 1788-1793 5,166.04 Timesheets or other substantiation not provided
59343 Pro Unlimited 2319-2324 5,411.51 Timesheets or other substantiation not provided
58961 Pro Unlimited 2297-2302 4,104.27 Timesheets or other substantiation not provided
59215 Pro Unlimited 2311-2318 26,843.63 Timesheets or other substantiation not provided
59463 Pro Unlimited 2325-2328 5,546.64 Timesheets or other substantiation not provided
14274409 Culinart Inc 3899-3903 3,408.96 Timesheets or other substantiation not provided
14274415 Culinart Inc 3904-3909 2,859.23 Timesheets or other substantiation not provided
14274410 Culinart Inc 3910-3914 40,609.27 Timesheets or other substantiation not provided
14260300 Culinart Inc 3915-3919 1,728.61 Timesheets or other substantiation not provided
Receipt not provided for Brentwood Ops and
166018 Building Star Security Corp 4839-4862 975.60 Account Executive Lewis Davis.
Invoice not paid by National Grid so it is
assumed the cost was disallowed and should not
93249 Lincoln Controls Group 4863-4868 1,444.00 be passed to LIPA
Invoice not paid by National Grid so it is
assumed the cost was disallowed and should not
53986A On Site Energy Co Inc 4909-4914 4,015.00 be passed to LIPA
Charge associated with National Grid Internal
N/A N/A – NG Internal Audit Dept N/A 4,335.99 Audit Dept. No invoice provided.
Invoice not paid by National Grid so it is
assumed the cost was disallowed and should not
585816 Lewis Tree Service 1794-1818 41,767.42 be passed to LIPA
Invoice not paid by National Grid so it is
assumed the cost was disallowed and should not
585816 Lewis Tree Service 1819-2016 442,738.32 be passed to LIPA No sales tax

258804 R&R Landscaping 2017-2024 24,960.30 Timesheets or other substantiation not provided
73Z16010 Asplundh Tree Expert 2089-2099 8,819.84 Unable to read timesheet
Invoice not paid by National Grid so it is
assumed the cost was disallowed and should not
75G87010 Asplundh Tree Expert 2142-2151 5,950.40 be passed to LIPA
Invoice not paid by National Grid so it is
assumed the cost was disallowed and should not
75G86210 Asplundh Tree Expert 2152-2163 6,113.20 be passed to LIPA
Invoice not paid by National Grid so it is
assumed the cost was disallowed and should not
75G86810 Asplundh Tree Expert 2164-2172 3,090.64 be passed to LIPA. No sales tax
Work was completed during storm time. Some
expenses double charged. Nearly $18k in
81Z458510 Asplundh Construction Corp 2173-2296 20,757.16 receipts not provided (PCARD).
NGRID25 BBC Electrical Services Inc 2329-2382 3,489,428.20 Timesheets or other substantiation not provided
 Memo to Bob Reith, KSE
LIPA 2010 Storm 18, Invoice 1 Questions
March 10, 2011
Page 3 of 9

Fuel, Tolls, Lodging and Meals not

substantiated because corresponding work has
not yet been substantiated (BBC Invoice
NGRID26 BBC Electrical Services Inc 2383-2879 186,667.64 "NGRID25"). Receipts not provided for Fuel.
Fuel, Tolls, Lodging and Meals not
substantiated because corresponding work has
not yet been substantiated. Timesheet summary
1562A SPE Utility Contractors 2880-2892 3,060.00 provided for one person only
Fuel, Tolls, Lodging and Meals not
substantiated because corresponding work has
not yet been substantiated. Timesheet summary
1558E SPE Utility Contractors 2893-3181 81,875.24 provided for one person only
Timesheets or other substantiation not provided.
This invoice only provides time summary for
1561A SPE Utility Contractors 3182-3198 18,020.00 one person. Missing all other SPE time
Fuel, Tolls, Lodging and Meals not
substantiated because corresponding work has
not yet been substantiated. Timesheet summary
1562E SPE Utility Contractors 3199-3394 34,935.24 provided for one person only
Fuel, Tolls, Lodging and Meals not
substantiated because corresponding work has
not yet been substantiated. Timesheet summary
1561E SPE Utility Contractors 3395-3503 19,199.18 provided for one person only
Fuel, Tolls, Lodging and Meals not
substantiated because corresponding work has
not yet been substantiated. Timesheet summary
1559E SPE Utility Contractors 3504-3539 24,664.42 provided for one person only
Fuel, Tolls, Lodging and Meals not
substantiated because corresponding work has
not yet been substantiated. Timesheet summary
1557E SPE Utility Contractors 3540-3729 56,060.87 provided for one person only
Work performed outside storm time. No sales
SM1753 Waste Recycling Solutions 3839-3857 6908.4 tax
Work was performed within storm time. 8 hours
82A05910 Asplundh Construction Corp 4695-4741 1,410.16 of PT overcharged to Working Foreman
Total 4,610,214.82

Transportation and Rentals (410, 438, 442, 615)

The following costs were not substantiated:

Invoice Contractor Bates Page Amount Not Reason Not Substantiated

Number Substantiated
Invoice not paid by National Grid so it is
assumed the cost was disallowed and
66992 Able Equipment Rental, Inc 3938-3944 2,083.72 should not be passed to LIPA
Backup materials do not explain need/use
25201731- Hertz Equipment Rental of equipment rental, or how it relates to
001 Corp 4915-4922 650.00 storm (F150 Pickup Truck)
 Memo to Bob Reith, KSE
LIPA 2010 Storm 18, Invoice 1 Questions
March 10, 2011
Page 4 of 9

Backup materials do not explain need/use

25201692- Hertz Equipment Rental of equipment rental, or how it relates to
001 Corp 4923-4930 230.00 storm (Explorer)
Backup materials do not explain need/use
251989114- Hertz Equipment Rental of equipment rental, or how it relates to
001 Corp 4931-4938 832.75 storm (F350 Pickup Truck)
Total 3,796.47

PCARD (420,422,423,424,425,428,429)

The following costs were not substantiated:

Employee Organization Vendor Amount not Reason Not Substantiated

Name Substantiated
ED&C E/S MEETINGHOUSE DELI 7.98 Receipt not provided
Sys Ops ES STRATHMORE BAGELS 27.97 Receipt not provided
Sys Ops ES MAPLE TREE DELI 32.21 Receipt not provided
Sys Ops ES SIGNATURE BAGELS QPS 53.57 Receipt not provided
Meter & Test STAPLES 00117960 74.74 Receipt not provided
Sys Ops ES BJ WHOLESALE #0312 QPS 85.64 Receipt not provided
Sys Ops ES THE ROADHOUSE QPS 97.51 Receipt not provided
ED&C WS BJ WHOLESALE #0049 QPS 108.45 Receipt not provided
Sys Ops Stf RAIMO PIZZERIA 129.20 Receipt not provided
Receipt does not match amount
Veg Mgmt BROOKSIDE DELI QAE 131.25 charged
Sys Ops ES THE ROADHOUSE QPS 132.82 Receipt not provided
LOBSTER ROLL
Sys Ops ES NORTHSIDE 154.19 Receipt not provided
ED&C Stf WILLIS AVE DELI 269.54 Receipt not provided
Sys Ops ES LENNYS PIZZA & PASTA 328.21 Receipt not provided
Sys Ops Cntrl MIYAKO L.I. INCORPOQPS 385.69 Receipt not provided
ED&C Stf CULINART @ KEYSPAN 652.77 Receipt not provided
Sys Ops ES SIGNATURE BAGELS QPS 698.00 Receipt not provided
Sys Ops ES SIGNATURE BAGELS QPS 698.00 Receipt not provided
Distrb. Receipt indicates "Nite Bar". Need
Support MIM S RESTAURANT 704.24 to provide itemized receipt
Question if GPS units should be
ED&C QN BEST BUY MHT 00009506 738.61 charged to LIPA Storm
CUSTOM CATERING OF
Sys Ops ES LON 854.38 Receipt not provided
Sys Ops ES SIGNATURE BAGELS QPS 928.74 Receipt not provided
ED&C Stf CULINART @ KEYSPAN 999.99 Receipt not provided
ED&C Stf CULINART @ KEYSPAN 999.99 Receipt not provided
ED&C Stf CULINART @ KEYSPAN 999.99 Receipt not provided
Sys Ops Cntrl FRANKS STEAKS JERICHO 1,390.57 Receipt not provided
HYATT REGNCY WIND
Purchasing WAT HAUP 5,000.00 Receipt not provided
Memo to Bob Reith, KSE
LIPA 2010 Storm 18, Invoice 1 Questions
March 10, 2011
Page 5 of 9

HYATT REGNCY WIND

Purchasing WAT HAUP 5,000.00 Receipt not provided
MARRIOTT 33788 LI $75,525 "Misc" charge is not
Purchasing UNIONDALE 75,525.00 explained by documentation
Total 97,209.25

Other Categories (472, 473, 474, 477, 478, 479, 480, 481, 501, 510)

Receipts for ‘Cost Center 079 – Intern Audit Dept, Account 478 – Meals Non A/P were
provided and substantiated ($65,891.76).
Substantiation for all other cost centers/accounts were not provided (5,707.31).

Sales and Use Taxes (589)

The following sales and use taxes were not substantiated as the corresponding invoices
were not substantiated:

Invoice Number Contractor Bates Page Amount Not Substantiated

76 Brilliant Transportation LTD 4146-4153 1,196.50
77 Brilliant Transportation LTD 4154-4161 922.88
82 Brilliant Transportation LTD 4162-4182 11,716.76
165960 Commercial Bldg. Maint. 4002-4006 19.06
166015 Commercial Bldg. Maint. 4007-4012 105.57
166016 Commercial Bldg. Maint. 4013-4021 52.79
166091 Commercial Bldg. Maint. 4022-4026 8.80
84676 Lewis Tree Service 1794-1818 3,602.44
37273 R&R Landscaping 2017-2024 2,152.83
73Z16010 Asplundh Tree Expert 2089-2099 760.71
75G87010 Asplundh Tree Expert 2142-2151 513.22
75G86210 Asplundh Tree Expert 2152-2163 527.27
81Z458510 Asplundh Construction Corp 2173-2296 1,790.31
NGRID25 BBC Electrical Services Inc 2329-2382 300,963.18
NGRID26 BBC Electrical Services Inc 2383-2879 16,100.08
82A05910 Asplundh Construction Corp 4695-4741 121.63
25201731-001 Hertz Equipment Rental Corp 4915-4922 56.07
25201692-001 Hertz Equipment Rental Corp 4923-4930 19.84
251989114-001 Hertz Equipment Rental Corp 4931-4938 71.82
Total 340,701.76
 Memo to Bob Reith, KSE
LIPA 2010 Storm 18, Invoice 1 Questions
March 10, 2011
Page 6 of 9

Benefits and Burdens Costs

The following benefits and burdens were not substantiated as the rates used for
calculating the benefits do not match with rates provided:

OPERATIONS
Cost Centre Account Rates Used Rates that have Calculated Invoiced Difference
Number for been used, but
calculation not found in the
from rate rate sheet
sheet
provided
612KLC Gas Control LI 719 11.91% 12.63% 91.33 96.82 5.49
634KLC - Production/Lng
LI 733 -0.34% -0.12% (2.29) (0.80) 1.49
638KLC - Gas Service LI 733 -0.34% -0.34% (205.79) (193.52) 12.27
649KLC - Aux Ops Support
LI 733 -0.34% -0.27% (26.95) (21.77) 5.18
651KLC - Construc Nassau 733 -0.34% -0.30% (145.80) (126.72) 19.08
653KLC - Field Ops
Hewlett 1 733 -0.34% -0.27% (119.36) (96.31) 23.05
654KLC - Field Ops
Hewlett 2 733 -0.34% -0.31% (49.32) (44.69) 4.63
655KLC - Field Ops
Bellmore 733 -0.34% -0.28% (116.18) (95.28) 20.90
657KLC - Field Ops Roslyn 733 -0.34% -0.27% (100.91) (80.51) 20.40
658KLC - Filed Ops
Greenlawn 733 -0.34% -0.27% (53.34) (44.64) 8.70
659 KLC - Field Ops
Brentwood 733 -0.34% -0.23% (90.11) (62.2) 27.91
661 KLC - Field Ops
Patchogue 733 -0.34% -0.28% (69.12) (57.54) 11.58
662 KLC - Field Ops
Riverhead 733 -0.34% -0.31% (45.06) (41.02) 4.04
664 KLC - Gas Dispatching
LI 733 -0.34% -0.26% (22.37) (16.92) 5.45
882 KGC - Elec. Prod -
E.F.Barrett 733 -0.22% -0.19% (14.76) (12.57) 2.19
884 KGC - Elec. Prod - Far
Rock 733 -0.22% -0.09% (5.70) (2.27) 3.43
885KGC - Elec. Prod -
Glenwood 733 -0.22% -0.18% (6.49) (5.33) 1.16
886KGC - Elec. Prod - Port
Jeff 733 -0.22% -0.15% (27.24) (19.11) 8.13
887 KGC - Elec. Prod -
Northport 733 -0.22% -0.14% (66.24) (43.16) 23.08
997KOC - Controllers CCr 716 19.56% 19.58% 246,516.03 246,707.56 191.53
KOC
 Memo to Bob Reith, KSE
LIPA 2010 Storm 18, Invoice 1 Questions
March 10, 2011
Page 7 of 9

717 21.89% 21.91% 275,881.18 276,095.53 214.35

718 11.63% 11.64% 146,573.69 146,687.56 113.87
719 15.67% 15.68% 197,490.09 197,643.52 153.43
736 1.10% 1.10% 13,863.38 13,874.15 10.77
738 1.18% 1.18% 14,871.62 14,883.18 11.56
755 10.66% 10.67% 134,348.72 134,453.10 104.38
SERVCO
673KLC - Corrosion - KLC 733 -0.34% -0.29% (29.04) (25.14) 3.90
882KGC - Elec. Prod -
E.F.Barrett 733 -0.34% -0.03% (5.43) (0.62) 4.81
887KGC - Elec. Prod -
Northport 733 -0.34% -0.12% (4.98) (2.68) 2.30
716 27.50% 27.79% 704.75 712.2 7.45
717 18.25% 18.44% 467.70 472.64 4.94
718 14.71% 14.87% 376.98 380.96 3.98
719 8.00% 8.08% 205.02 207.18 2.16
901KCC - Facilities Print
721 8.74% 8.83% 223.98 226.34 2.36
Services
722 11.46% 11.58% 293.69 296.8 3.11
733 1.54% 1.56% 39.47 39.88 0.41
736 3.50% 3.54% 89.70 90.65 0.95
738 0.93% 0.94% 23.83 24.09 0.26
716 19.56% 20.33% 110,499.08 114,862.76 4,363.68
718 11.63% 17.14% 65,700.63 96,826.26 31,125.63
997KOC - Controllers Cost
721 7.80% 8.97% 44,064.05 50,648.19 6,584.14
Center KOC
722 13.45% 14.80% 75,982.24 83,627.75 7,645.51
736 1.10% 2.27% 6,214.16 12,837.99 6,623.83
Total 57,387.47

The following benefits and burdens were not substantiated as the rates used for
calculating the benefits were not provided:

OPERATIONS
Cost Centre Invoiced
601KNC Field Ops CFS Bayridge 922.47
602KNC - Field Ops Springfield 4,388.47
603KNC - Field Ops Canarsie 4,264.89
608KNC - Construction Queens 22,858.03
609KNC - Construction Brklyn 2,027.14
616KNC - Leak Survey 2,092.75
622KNC - Field Ops Maintain Springf 1,554.76
623KNC - Field Ops Maint Canarsi 3,528.34
624KNC - Field Ops Maint Newton 3,249.34
625KNC - Field Ops Maint RedHook 854.38
631KNC - Instrum & Regltn – NY 9,378.41
637KNC - Meter Rdng/AMR 3,353.30
647KNC - Mapping – KNC 3,256.66
665KNC Damage Prev & Cst Rcvry 6,289.42
Memo to Bob Reith, KSE
LIPA 2010 Storm 18, Invoice 1 Questions
March 10, 2011
Page 8 of 9

666KNC Auxiliary Operations 3,895.97

672KNC Corrosion 3,160.71
688KNC - Support Services NY 1,650.76
SERVCO
030ETC Keyspan Energy Trading Svcs 1,510.92
116KNC - Warehouse/Material Managment-NYC 1,789.28
118KNC - Facilities Management NYC 12,358.76
625KNC - Field Operations Maintain RedHook 1,210.92
637KNC - Meter Reading/AMR 2,214.43
Total 95,810.11

Additional Comments
Sales and Use Taxes

The following sales and use taxes were not invoiced:

Invoice Number Contractor Bates Pages Expected Sales

tax not taken
C7530 Looks Great Services Inc. 2066-2078 317.15
81A50010 Asplundh Construction Corp 3740-3751 23.50
81A50910 Asplundh Construction Corp 3752-3761 4.98
81A51010 Asplundh Construction Corp 3762-3772 7.89
81A50810 Asplundh Construction Corp 3773-3783 3.84
81A50610 Asplundh Construction Corp 3784-3794 11.11
81A50510 Asplundh Construction Corp 3795-3805 14.20
81A50410 Asplundh Construction Corp 3806-3817 9.48
81A50310 Asplundh Construction Corp 3818-3829 13.79
81A50210 Asplundh Construction Corp 3830-3838 1.92
591050 Hawkeye, LLC 3858-3869 4.60
589812 Hawkeye, LLC 3883-3893 17.40
589864 Hawkeye, LLC 4183-4193 30.68
589817 Hawkeye, LLC 4194-4204 30.68
589819 Hawkeye, LLC 4205-4215 11.46
589809 Hawkeye, LLC 4216-4224 8.95
590637 Hawkeye, LLC 4233-4246 30.67
590646 Hawkeye, LLC 4247-4260 25.33
590588 Hawkeye, LLC 4161-4275 15.11
590597 Hawkeye, LLC 4276-4289 7.86
590655 Hawkeye, LLC 4290-4305 25.33
590669 Hawkeye, LLC 4306-4318 18.96
590641 Hawkeye, LLC 4319-4327 3.03
590659 Hawkeye, LLC 4328-4338 5.61
590615 Hawkeye, LLC 4339-4349 18.27
590644 Hawkeye, LLC 4350-4362 17.97
590633 Hawkeye, LLC 4363-4374 13.82
590611 Hawkeye, LLC 4375-4387 18.22
590667 Hawkeye, LLC 4388-4401 6.51
Memo to Bob Reith, KSE
LIPA 2010 Storm 18, Invoice 1 Questions
March 10, 2011
Page 9 of 9

590613 Hawkeye, LLC 4402-4415 25.33

590574 Hawkeye, LLC 4416-4427 5.98
3325 Bancker Electric 4428-4439 2.02
3327 Bancker Electric 4440-4460 43.84
3324 Bancker Electric 4478-4492 14.07
3326 Bancker Electric 4493-4513 25.45
3328 Bancker Electric 4514-4542 38.54
3330 Bancker Electric 4543-4565 13.81
82A05710 Asplundh Construction Corp 4603-4630 2.88
82A02510 Asplundh Construction Corp 4631-4694 3.99
82A05910 Asplundh Construction Corp 4695-4741 5.38
82A06010 Asplundh Construction Corp 4742-4800 6.60
63914 Bancker Construction Corp 4821-4838 1,883.50
128231 Cap Equipment Leasing Corp 4094-4099 2.16
Total 2,791.87

Discounts not taken

The following discounts were not taken:

Invoice Number Contractor Bates Pages Expected Discount

63936 Bancker Construction Corp 4801-4820 573.22
63914 Bancker Construction Corp 4821-4838 436.75
Total 1,009.97