The Public Utilities Regulatory Authority Wednesday morning issued a ruling finding that both Eversource Energy and United Illuminating Co. failed to meet certain acceptable performance standards in their preparation for and handling of Tropic Storm Isaias, which last August left hundreds of thousands of Connecticut residents without power, some for days on end.
The decision — which followed an eight-month investigation by PURA — came down particularly hard on Eversource, stating that the utility failed to communicate critical information to customers and municipal officials during the storm and deployed inadequate resources in its wake, as electrified downed power lines went unrepaired and ratepayers soldiered on without electricity, turned to generators for power, or in some cases temporarily left their homes to stay elsewhere.
United Illuminating’s performance was “underwhelming in some areas,” the commission wrote, but “still markedly better than that of Eversource.”
PURA said it has proposed a downward adjustment in the companies’ allowed rate of return on equity — 0.9% for Eversource and 0.15% for United Illuminating — to incentivize the utilities to marshal a better response next time.
During a press conference Wednesday morning, PURA members said they will continue to hold the utilities, especially Eversource, to account for their shortcomings.
“The decision is a commentary on the deliberate decision by Eversource leaders to manage the company as a corporation, rather than as a utility with a statutory public service obligation,” said PURA Chairwoman Marissa P. Gillett. “The decision is not a reflection on the commendable efforts of the line workers, field crews, damage assessors and others, who came from near and far to assist Connecticut in our time of need.”
Commissioner Michael Caron echoed those points, commending line workers and other utility employees but criticizing Eversource’s upper management for, in his view, “placing profits over people.”
“We have the utmost respect for the hardworking people of our electric distribution companies who worked many long and arduous hours bringing the people of Connecticut back online last August and thank them for their efforts,” Caron said. “However, when it comes to ‘Show Time’ and the spotlight goes on, Eversource proceeds to cower in the corner. Worse, decade after decade it is always the same usual suspects: lack of preparedness, lack of communication, lack of coordination and a lack of timely restoration.”
In a statement, Eversource defended its handling of the storm, as it has since last August.
“We stand by our response in Storm Isaias as we know our thousands of employees showed skill and dedication in restoring power to customers as quickly as possible,” said Eversource spokesman Mitch Gross. “There are many areas for improvement that we are already addressing and we continue to work in good faith with our communities, customers and regulators to improve our performance. Today’s decision deserves careful consideration and review and we are committed to moving forward in the best interest of our customers.”
PURA officials said they would move immediately into the second phase of their proceedings, during which the commission will consider civil penalties and further enforcement orders.
The authority also will require Eversource and United Illuminating to undergo comprehensive management audits, performed by an independent third party.
Wednesday afternoon, Gov. Ned Lamont released a statement concurring with the commission’s findings.
“PURA announced today what we have known since Tropical Storm Isaias hit our state last summer — Eversource and UI were not adequately prepared to serve their ratepayers to keep the lights and air conditioning on during a significant storm,” the governor said. “Accountability is critical for all ratepayers across our state and that is what is happening now.”
