CT utility regulators uphold millions in fines against Eversource, UI

New Haven Register (CT)

Jul. 15—NEW BRITAIN — Connecticut utility regulators largely upheld millions of dollars in fines against Eversource Energy and The United Illuminating Co. for the two electric distribution companies' handling of power restoration in the aftermath of last year's Tropical Storm Isaias.

The final ruling by the Public Utilities Regulatory Authority Wednesday imposed a $29 million fine against Eversource and $1.17 million against The United Illuminating Co.

The original ruling in the case was handed down May 6. At that time, PURA fined Eversource $30 million in civil penalties, the maximum allowed under state law, and fined UI a total of $2.1 million.

It wasn't immediately clear Wednesday why PURA commissioners chose to slightly reduce the fines against the two companies. But in issuing the agency's ruling, PURA Chairwoman Marissa Gillett said in a statement that if state law hadn't capped the amount that Eversource could be fined, "the Authority would have assessed a penalty of $98.4 million."

State Attorney General William Tong said the fine against Eversource was warranted for its failure to meet its obligations to ratepayers in the aftermath of Isaias last year. "Eversource has much work to do to regain our trust, and we will be holding them accountable at every step along the way," Tong said.

"Eversource failed its customers and put Connecticut families at risk," he said. "Their response to Tropical Storm Isaias was unacceptable, and PURA is right to impose severe penalties. This penalty will be paid rightfully by the company and its shareholders — not ratepayers."

Regulators' ruling states explicitly that the fines are to be paid by the companies and not their customers.

Mitch Gross, an Eversource spokesman, said the company hasn't decided whether to appeal Wednesday's decision.

"Time and time again our employees work tirelessly to restore power as quickly as possible and support our customers and communities when outages occur," Gross said. "We cannot control the weather, or the damage that is caused by falling trees and vegetation when storm damage occurs. Our focus now is on the future and assuring that our emergency response efforts are intensive and that our employees are safe and secure in doing their jobs on behalf of our customers and communities."

Susan Millerick, a UI spokeswoman, said the company was "pleased that PURA gave careful consideration of the evidence we presented to them last month and we appreciate their decision to decrease the penalty levied."

"We'll continue working closely with PURA toward our shared goals of safe, affordable and reliable service for our customers," Millerick said.

Eversource and UI had filed appeals in early June regarding an element of PURA's May draft decision, which, in addition to the fines, reduced the utilities' return on investment. In Eversource's complaint, filed as part of the company's appeal, attorneys for the utility noted that PURA reduced the utility's return on equity by 90 basis points for an indefinite period of time, which translates into an ongoing financial penalty of roughly $31 million per year.

UI's return on investment was reduced by 15 basis points. Both penalties remain intact, said Joe Cooper, a PURA spokesman.

Editor's note: This story has been updated to correct the name of PURA Chairwoman Marissa Gillett.

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