Berlin electric utility Connecticut Light & Power said state regulators should reject a request from Attorney General George Jepsen to assess up to $150 million in penalties against the company for its response to the two widespread power outages in 2011.
On June 11, the attorney general said CL&P was imprudent in its preparation and reaction to Tropical Storm Irene in August and the Oct. 29 snowstorm that left 56 and 67 percent of the utility’s 1.2 million ratepayers without power, some for more than a week. As a result of the imprudence, Jepsen told the Public Utilities Regulatory Authority to assess a 30 to 50 percent penalty against CL&P’s $300 million in storm restoration costs, according to Jepsen’s brief.
If assessed, the penalty would prevent CL&P from recovering a portion of its restoration costs from ratepayers. The utility already committed to not recovering $40 million from ratepayers and to defer the collection of the rest until at least 2014.
In its reply to Jepsen’s penalty request, CL&P said his claim of imprudence is not consistent with the evidence in the case, and the request should be rejected. CL&P notes that several independent consultants – including Gov. Dannel Malloy’s Witt Associates of Washington, D.C. – said the utility’s response was within industry norms.
CL&P also noted the changes it was making to prepare for any upcoming storms, including spending $54 million on tree trimming, establishing an emergency preparedness organization, creating an infrastructure hardening organization, revising its emergency response plan, and strengthening its communications with individual towns.
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