A recent Boston Globe story, “Coakley Seeks Inquiry into Utility’s Legal Fees” reports that Massachusetts Attorney General Martha Coakley announced last Thursday that she has asked the Department of Public Utilities to look into a gas company’s allegedly improper collection of $18.5 million in legal fees passed on to Massachusetts consumers.  The Attorney General’s office says consumers have been charged to pay legal fees to a New York law firm that employs the president of Southern Union, the parent company of New England Gas Company (NEGC).

Over $18.5 million in legal fees were allegedly funneled to Kasowitz, Torres Benson & Friedman, a New York-based law firm that employs Eric D. Herschmann, Southern Union’s president, chief operating officer and vice-chairman of its board of directors.  Coakley alleges that under the arrangement the more legal fees charged by the Kasowitz firm and collected from NEGC’s Massachusetts consumers, the more Herschmann stood to gain monetarily.

“Massachusetts consumers paid millions in legal fees to an outside form with direct ties to a Southern Union executive,” Coakley said in a statement.  “This appears to be a clear conflict of interest.”  As attorney general, Coakley’s office acts as an advocate for Massachusetts ratepayers and is authorized to intervene in judicial and administrative proceedings on behalf of consumers in connection with any matter involving rates, charges, prices or tariffs of any gas company doing business in the state.