HARTFORD, Conn. (AP) — Connecticut Light & Power’s response to two destructive storms last year was inadequate and its performance will be a factor in requests for rate increases, state regulators said Tuesday.
The Public Utilities Regulatory Authority said in a draft decision that for future rate requests it will consider the extent to which the Northeast Utilities subsidiary has recognized its shortcomings and taken steps to improve its storm response.
The performance after the storms and preparation before were “deficient and inadequate,” regulators said. Specifically, regulators said CL&P failed to adequately prepare workers, support its municipal liaison program and communicate with customers when power would be restored.
Regulators said the authority could consider a reduction to CL&P’s allowed profit as a penalty for poor management.
A spokesman said in an email that the utility is reviewing the lengthy draft decision and will decide whether to file written comments or participate in oral arguments before a final decision is issued Aug. 1.
The utility has said several consultants found that its performance was consistent with industry norms.
Regulators said they also will scrutinize the recovery of storm-related costs sought by United Illuminating, Connecticut’s smaller utility. UI spokesman Michael West said he has not read the draft decision, but regulators’ oversight of a utility’s costs is standard.
Following both storms, a tropical storm in August and a snowstorm in late October, power was out for several days, affecting hundreds of thousands of residences and businesses and drawing intense criticism from customers and politicians.
State Attorney General George Jepsen asked regulators last month to reject up to half of the recovery costs of $290 million for the two storms. He said CL&P’s preparation and emergency response was inadequate.
The draft decision by state regulators “clearly echoes our case in this proceeding and would assess meaningful penalties” on CL&P, he said in a statement.
Gov. Dannel P. Malloy praised regulators for their “careful deliberation” on the issue.
Regulators also reviewed the impact of the two storms on telecommunications, cable TV, gas and water companies in Connecticut. Regulators said the businesses were less affected by the storms than the electric industry “and for the most part maintained adequate service.”
Regulators demanded improved service reliability, including better communication and websites that provide storm and other emergency information for customers.
Numerous committees and agencies, including a panel appointed by Malloy, have investigated the storms and criticized CL&P’s response.
The utility’s president and chief operating officer resigned and its response was a factor in Connecticut’s review of Northeast Utilities’ $5 billion purchase of NStar in Boston.
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