Connecticut state regulators found Berlin electric utility Connecticut Light and Power to be “deficient and inadequate” in its preparation and response to the two 2011 storms that caused widespread power outages, according to a draft decision made Tuesday.
The Public Utilities Regulatory Authority will consider its findings on the storms next time CL&P makes a rate request before the regulators, although no such request is pending. Connecticut Attorney General George Jepsen had asked PURA to assess $150 million in penalties against the utility.
PURA had been reviewing the response of CL&P and New Haven electric utility United Illuminating to Tropical Storm Irene and the Oct. 29 snowstorm, which each knocked out power to nearly 1 million Connecticut ratepayers, some for up to 11 days. CL&P was criticized widely following the snowstorm, forcing the resignation of its president and a $27 million payback to customers for their inconvenience.
Since the decision issued by PURA on Tuesday is a draft, all sides will have a chance to review and comment on the findings before a final decision is made.
“This draft decision includes all of the state’s utilities – electric, natural gas, water, phone and cable companies. We are in the process of reviewing all 117 pages of the document and will decide if we will file written exceptions or participate in oral arguments in front of the Commissioners before they issue their final decision on August 1,” CL&P spokesman Mitch Gross said.
The decision includes incentives for CL&P to strengthen its preparation for future storms, and PURA will note any measurable steps CL&P takes to fix its shortcomings during the next rate review. PURA called on CL&P to established a more heightened state of readiness in preparation of future storms, saying the company needs more disciplined and thorough leadership and communication.
“Last year’s storms were a nightmare for Connecticut residents, and the response from (CL&P parent) Northeast Utilities was unacceptable,” Gov Dannel Malloy said in a press release. “Today, PURA is echoing the earlier findings of the Two Storm Panel, the Witt report, and hundreds of thousands of Connecticut residents who experienced extended power outages after each storm. It is clear that Northeast Utilities did not prepare for outages of this magnitude and did not build adequate capacity to respond. I applaud PURA’s careful deliberation on this issue.”
PURA did not specify any possible sanctions against UI, although PURA said it will consider UI’s performance during the storm when reviewing requests for recovery of storm-related costs.
