NU increases storm fund to $30M

Admitting its initial offer of $10 million insufficient, Hartford-based Northeast Utilities increased its storm remuneration fund to $30 million for Connecticut residential customers impacted by the extended power outage following the heavy Oct. 29 snowstorm.

In tripling the fund, Northeast Utilities has asked national compensation czar Kenneth Feinberg to help administer the fund to customers of its subsidiary, Berlin-based Connecticut Light & Power. Feinberg was dubbed the nation’s compensation czar after he designed and administered the Sept. 11 Victim Compensation Fund in 2001 and then the $20 billion fund for the victims of the BP oil spill in 2010.

In addition to the $30 million fund, Northeast Utilities said it will donate $5 million to the Connecticut Food Bank, Foodshare and Operation Fuel to help address community needs for winter. Each of the three charities will receive $1 million initially followed by more funds in January. 

The Northeast Utilities fund was created after widespread public anger and criticism following CL&P’s handling of the outages following the Oct. 29 snowstorm, which left more than 830,000 customers in the dark, some for nearly two weeks. CL&P President and Chief Operating Officer Jeffrey Butler resigned on Nov. 17 as a result of the widespread criticism.

The initial offering of $10 million was criticized as too low, particularly by Gov. Dannel Malloy.

“As we heard from our customers and had discussions with Governor Malloy and his staff, it became clear that the original sum we proposed, $10 million, was insufficient,” said Charles Shivery, Northeast Utilities president, chief executive officer and chairman, in announcing the new $30 million fund. “While this storm was unprecedented, we set very high expectations for the performance of Connecticut Light and Power.  Clearly, we did not meet a number of those expectations.”

NU announced on Tuesday that any CL&P customer who was without power after noon on Nov. 5 would be eligible for a February bill credit between $100-$200.

The $30 million fund will be open for application starting Dec. 7, and CL&P will start contacting qualified customers on that date to make them aware of their eligibility. Customers also can apply at www.cl-p.com or by calling 888-566-9257. Applications are due 5 p.m. Jan. 31. Customers who already filed claims through the 211 number do not need to apply again.