Connecticut regulators on Wednesday ordered Eversource and United Illuminating to return nearly $30 million to customers as a penalty for mishandling Tropical Storm Isaias last year.
In its final decision that rebuked the electric utilities’ preparation before, and response after, the Aug. 4, 2020, storm, the Public Utilities Regulatory Authority ordered Eversource to issue credits of $28.4 million on customers’ monthly bills.
United Illuminating must give credits to customers of about $1.2 million.
Credits will be returned as a separate line-item on customers’ bills and will be based on the kilowatt-hours used. Credits will be issued beginning Aug. 1 and last through July 31, 2022.
Regulators said Eversource did not satisfy performance standards for its municipal liaison program, follow safety protocols related to clearing blocked roads, communicate critical information to customers or secure “adequate resources in a timely manner” to protect public safety.
Eversource, which serves about 1.3 million customers, said its employees work “tirelessly to restore power as quickly as possible.”
“We cannot control the weather or the damage that is caused by falling trees and vegetation when storm damage occurs,” the utility said. “However, our employees are relentless in returning to the field every time they are called upon to repair the damage and get the power back on as quickly as safety allows.”
PURA criticized UI for failing to satisfy performance standards for safety protocols and “priority call duties.” The utility serves about 339,000 residential and business customers in the Bridgeport and New Haven areas.
“UI is 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,” spokesperson Susan Millerick said.
PURA had initially set a penalty of $2.1 million
The decision is final, but the dispute between the utilities and regulators continues. Eversource and UI have appealed in state Superior Court a separate punishment imposed by the state that ordered a reduction in Eversource’s return on equity by 0.9%, or about $31 million a year, and a 0.15% cut for UI, amounting to about $1 million a year.
Return on equity is a measurement of a company’s profitability.
Regulators, state legislators and Gov. Ned Lamont struck hard at the two utilities following the storm that left as many as 1 million customers without power, in some cases for as long as a week.
Lawmakers and Lamont enacted legislation requiring the utilities to provide residential customers a credit of $25 for each full day, or 24 hours, of an outage that lasts more than 96 consecutive hours after an emergency. They also must provide residential customers $250 in compensation for medication and food that expired or spoiled due to a service outage lasting longer than 96 consecutive hours.
Stephen Singer can be reached at ssinger@courant.com.
