Eversource appeals $31M penalty

Photo | Eversource An Eversource crew works to repair damage from Tropical Storm Isaias.

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By Zachary Vasile

Eversource Energy has filed an administrative appeal against a $31 million fine imposed by state regulators as a penalty for the utility’s preparation for and handling of Tropical Storm Isaias last summer.

In a complaint filed Thursday, the company accused the Public Utilities Regulatory Authority of ordering a penalty larger than it is allowed to by law. The complaint also alleges that regulators did not afford the company due process and acted in an “arbitrary” and “capricious” manner by imposing a fine with “no basis.”

“Tropical Storm Isaias was a devastating storm that caused extensive damage to CT’s electric infrastructure,” said Eversource media relations manager Tricia Modifica in a statement released this morning. “Customers in every town we serve experienced outages – more than a million in all – yet we restored power safely and faster than in previous major storms. Our appeal addresses critical legal aspects of PURA’s decision and the serious implications the decision will have on future storm response efforts. We look forward to the final resolution of this issue and we see our appeal as an important step in the process.”

PURA determined that Eversource had violated certain accepted industry standards in its handling of Isaias, which left hundreds of thousands of people in Connecticut without power, some for several days. The majority of the $31 million fine was to be returned to customers in the form of rate credits, with a smaller amount paid to the state.

In a statement Friday, PURA said it would "rigorously defend" its final decision on the utility's storm performance.

"[PURA] would prefer to avoid continued litigation of Eversource’s universally-recognized deficient performance in preparing for and responding to Tropical Storm Isaias; however, Eversource is entitled to exercise any right to appeal it may have," PURA said. "The authority would rather that Eversource prioritize its responsibilities as a public service company and use its resources on operating a reliable and resilient distribution system and improving its emergency response instead of expending resources on further litigation."

This story has been updated to include comment from PURA