ConEd offered 60% of what I calculated for a power factor penalty error ($24K offer vs $40K claim). Client wants to know if we should take it or fight for the full amount. The error is clear-cut but ConEd says some penalties were "justified due to equipment issues." Anyone dealt with similar?
ConEd settlement offer - take it or fight?
60% is actually pretty good for ConEd. They rarely admit full liability even when they're clearly wrong. Unless you have ironclad proof that ALL the penalties were unjustified, I'd take the settlement. Fighting them through the PSC takes 6+ months and you might not get much more.
I agree with Greg. ConEd settlements are usually take-it-or-leave-it propositions. They know most people won't want to deal with the PSC process. $24K in hand is better than maybe $40K in 8 months, especially factoring in your time cost.
You're both probably right. Client is leaning toward taking the settlement anyway - they want to close this out and move on. Sometimes a bird in the hand is worth two in the bush.