PSEG Long Island's response to Isaias could cost the company.

State lawmakers are holding a hearing on the highly-criticized effort to restore power after the storm.

On Wednesday, the state's Department of Public Service, which is investigating the overall storm response, sent "notice of apparent violation" letters to four service providers.

Those providers included PSEG Long Island, Central Hudson, Con Edison and Orange & Rockland Utilities. It was also sent to telephone, cable and internet provider Altice-Optimum.

All providers now face steep penalties and must take immediate corrective actions.

The state is also threatening termination of PSEG Long Island's contract with LIPA if the investigation deems it appropriate.

Gov. Andrew Cuomo also announced PSEG management will not receive millions of dollars in performance bonuses this year.

PSEG didn't comment on the state's actions.

However, Altice, News 12's parent company, released a statement that says "Altice takes very seriously our responsibility and commitment to provide high-quality telecommunications services to our customers, and we will cooperate with the commission on these matters."

Department of Public Service cites PSEGLI for Isaias response, utility called to forfeit $10M bonus 

Power problems: PSEGLI criticized for storm response