Isaias Response Fines Proposed at $30M For Eversource, $2M for UI

CONNECTICUT — State utility regulators Thursday proposed a $30 million fine for Eversource Energy and $2.1 million penalty for United Illuminating for the "failure" of the power companies "to meet obligations to ratepayers" in the aftermath of Tropical Storm Isaias.

Connecticut Attorney General William Tong was quick to endorse the proposal because the $30 million penalty represents the maximum civil fine allowed by state law. The $30 million civil penalty is in addition to the Return on Equity reduction PURA assessed against Eversource last week to "incentivize better future storm performance," Tong said.

The proposal dictates that Eversource give back $28.4 million to ratepayers in the form of credits and pay a penalty of $1.6 million to the state.

The proposal for UI is the have the utility return $1.8 million to ratepayers and $360,000 to the state.

"Eversource failed its customers and put Connecticut families at risk after Tropical Storm Isaias. I fought for swift, severe penalties from the beginning, and this $30 million penalty is appropriate. Eversource must pay for their failures," Tong said. "This penalty is a strong first step to hold Eversource accountable for their disastrous performance, but this matter is far from over. We will continue to fight before PURA to ensure that Eversource cannot put the full cost of their failures back on ratepayers."

The utilities have 20 days to appeal.

"We are reviewing the notice and look forward to getting through the final stages of the process," Eversource spokesman Mitch Gross said. "While our employees worked tirelessly to restore power as quickly as possible, we recognize the hardships our customers and communities experienced, and we acknowledge there are areas for improvement. We are working – and will continue to work – in good faith with our communities, customers and regulators to improve our performance. "

In a preceding ruling late last month, PURA found both Eversource and UI did not "meet certain acceptable performance standards in preparing for, and responding to Tropical Storm Isaias."

The final decision in Docket No. 20-08-03 concludes an eight-month investigation following Gov. Ned Lamont's request for PURA to initiate a "comprehensive investigation" into how Connecticut's electric distribution utilities prepared for and responded to the Aug 4, storm.

Isaias left more than 1 million Connecticut residents and businesses without power for an extended period in the midst of the coronavirus pandemic and and a summer heat wave.

The PURA investigation considered more than 500 written comments from the public, including 48 sets of comments from public officials, all of which expressed "universal frustration" with the power companies' response to Isaias.

Said UI spokesman Edward Crowder, "We are reviewing the Notice of Violation and considering our next steps. We are disappointed PURA did not consider the facts we presented during the investigation. The facts show that we faithfully followed our Emergency Response Plan. We will continue to work with PURA to improve our preparation for and response to storms and other emergencies."