was energized by a low voltage cable that in January 2003 was repaired by the company in a manner that varied from its writ- ten procedures. Following this accident, the company began "stray-voltage" inspection testing of its transformer vaults, man- holes and service boxes in the portion of its service area in which its distribution facilities are underground. The company also tested certain of the City's Department of Transportation's street lights. The company has substantially completed this testing and has eliminated stray voltage conditions at the few locations tested where there was measurable voltage. The company has committed to add this testing to its annual inspection programs. In February 2004, the PSC instituted a proceeding as to whether Con Edison of New York violated the safety require- ments of the New York Public Service Law and ordered the company to show cause why the PSC should not commence an action seeking penalties from the company. The PSC also instituted a proceeding to examine the safety of the company's electric transmission and distribution systems and ordered the company to complete testing for stray voltage and any neces- sary repair of additional equipment in the company's service area. Con Edison of New York believes that its utility systems are safe and reliable. The company, however, is unable to predict whether or not any proceedings or other actions relating to this accident will have a material adverse effect on its financial con- dition, results of operations or liquidity. 90 Con Edison Annual Report 2003