U.S. Sen. Richard Blumenthal, Gov. Ned Lamont and Mayor Mark Boughton (L-R), assessing power restoration efforts in August 2020 in Danbury, Conn., where hundreds of Eversource customers remained without electricity a week after Tropical Storm Isaias.
H John Voorhees III / Hearst Connecticut MediaU.S. Sen. Richard Blumenthal is asking Connecticut regulators to force a breakup of the utility conglomerate Eversource, testifying Monday that the company has failed in its primary mission as a public service company delivering electricity reliably and affordably in Connecticut.
Eversource customers were clobbered with high bills after hot days in June and July that had many cranking up air conditioning. The bills also reflected an increase for electricity purchased from the Millstone Power Station nuclear plant in eastern Connecticut operated by Dominion Energy. Gov. Ned Lamont mediated the new purchase agreement months after taking office in 2019.
The Connecticut Public Utilities Regulatory Authority held an all-day hearing on Monday, with Blumenthal, D-Conn., among the public officials to testify. Members of the public will speak as well, including AARP which asked PURA to scrap the Dominion agreement and approach the regional electricity market overseer ISO New England to get other member states to chip in for electricity produced by the plant.
Blumenthal wants PURA to peg future Eversource rates to the company’s performance in delivery of services; and to remove any guarantees Eversource be allowed to turn a profit during any specific rate cycle or fiscal period.
Lamont echoed Blumenthal’s frustration Monday morning, saying his eyes and ears were opened in traversing Connecticut in early August on the heels of Tropical Storm Isaias which knocked out power to hundreds of thousands of homes and businesses. He described regulations in Great Britain that reward or penalize utilities based on performance, and emphasized strong regulatory powers can provide similar outcomes for consumers as competitive markets.
“The disconnect between pay and performance is shocking to me,” Lamont said. “I think the days of getting a 9.5 percent rate of return for just showing up is over.”
Eversource spokesperson Mitch Gross responded Monday the company is open to ideas on how to better serve customers.
“There were a number of proposals brought up this morning by political leaders that ranged from well-informed to some that showed a misunderstanding of the facts,” Gross stated in an email response to a query. “As a utility company providing a critical public service, we look forward to participating in the hearings and discussions regarding the state’s electric system. We do support creating a transparent, performance-based environment, that’s grounded in facts, defined metrics, and builds a better overall system for our customers.”
Eversource managers testified over several hours Monday, none among the ranks of the senior-most executives like CEO Jim Judge or Craig Hallstrom, president of regional operations including Connecticut. Blumenthal, municipal leaders and legislators continue to criticize Judge for not being more visible during the post-Isaias restoration efforts.
“Do not hide the ... CEO,” said state Rep. Gail Lavielle (R-143rd), speaking Monday. “His absence was shocking.”
PURA is planning a future hearing to analyze Eversource’s response to Tropical Storm Isaias along with that of Avangrid subsidiary United Illuminating. Public officials zeroed in Monday on the storm’s aftermath, despite a reminder from PURA Commissioner Marissa Gillett that the proceeding was intended to focus on higher customer bills.
State Rep. Kathleen McCarty, D-38th, accused fellow legislators of “disingenuous” criticism of the Dominion agreement, and that only a small portion of customers’ higher bills were the result of the new power purchase agreement. McCarty’s district includes Waterford where Millstone is located.
Connecticut Network is covering the hearing on cable channels in Connecticut that carry CT-N, also webcasting it at www.ct-n.com. PURA has received more than 1,000 letters of comment, according to Gillett. PURA will continue to collect public comment through Wednesday, encouraging commentators to email them to pura.executivesecretary@ct.gov with the subject line reading “Docket No. 20-01-01 Comments.”
Alex.Soule@scni.com; 203-842-2545; @casoulman