Connecticut regulators have ruled on one utility storm recovery cost case, but the big one is yet to come. In its recent decision on United Illuminating’s rate request, the Public Utilities Regulatory Authority slashed the utility’s $53.3 million request for storm recovery expenses by $7.2 million, a 14 percent penalty.
UI had its problems with the outages caused by Tropical Storm Irene and Superstorm Sandy, although most people would agree UI generally performed better than Connecticut Light & Power. Looming over CL&P and PURA is that utility’s $414 million storm recovery request, which includes $286 million CL&P is requesting from two, 2011 storms. PURA already ruled CL&P’s storm performances were deficient, and the utility must pay a penalty. Attorney General George Jepsen suggested a penalty of up to $143 million. CL&P, of course, believes it shouldn’t face further sanctions, arguing it has improved its storm response and already self-imposed a $40 million penalty.
We recommend a $25 million sanction. Coupled with CL&P’s self-imposed fine, that equals a punishment of 20 percent of the utility’s storm costs. It’s reflective of the hardships CL&P caused through its dismal 2011 performance, but also acknowledges the strides the company has made to improve.
CL&P wasn’t the only one caught with its pants down in 2011, but it took the brunt of the PR hit. No reason to scapegoat the company any further.
