Eversource, CT reach settlement over Isaias response

PHOTOS | CONTRIBUTED Eversource crews at work in the wake Tropical Storm Isaias, which knocked out power to over 1 million Connecticut residents in 2020.

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By Zachary Vasile

Eversource Energy will return millions to ratepayers and change some elements of its organizational structure under the terms of a new deal with the state designed to settle complaints over its handling of Tropical Storm Isaias.

The $103.4 million plan, brokered by Gov. Ned Lamont and state Attorney General William Tong, directs the utility to return $65 million to customers in the form of two rate credits on their December and January bills. The state secured a commitment from Eversource not to apply for a rate increase until at least January 2023, for rates that could not go into effect before January 2024.

Additionally, the company agreed not to appeal a $28.4 million penalty levied by the Public Utilities Regulatory Authority as part of that agency’s review of the response to Isaias.

The storm, which struck in August 2020, left hundreds of thousands of people without power, some for days on end. The pace of electric service restoration, and an apparent lack of communication between towns and their utilities, triggered intense backlash against Eversource and to a lesser extent United Illuminating Co., and prompted the attorney general’s office and PURA to launch investigations.

The remaining $10 million included in the settlement will be used to assist customers who are having difficulty paying their utility bills, according to state officials.

Eversource will also be required to create a new post — a Connecticut-based president of Connecticut Light & Power — and add new seats to its governing board for representatives from Connecticut, changes Lamont said will strengthen local control and improve the company’s responsiveness.

“Our focus in this process has been on accountability to the ratepayers of Connecticut,” Lamont said. “With this settlement, ratepayers get some well-deserved relief in the short-term, and in the long-term they get more security that something like this won’t happen again. The reforms to CL&P required in this settlement will provide greater local control and oversight of the local utility, and an improved consumer experience for ratepayers.”

Eversource officials have defended the company’s efforts in planning for and responding to Isaias, noting that the storm turned out to be more powerful than expected, but have also acknowledged the widespread frustration over the pace of its power restoration work.

“This settlement provides tangible relief for our customers as we continue to deal with COVID-19 and prepare for the heating season,” said Eversource spokesperson Tricia Modifica. “The settlement is a reflection of our deep commitment to Connecticut. We learned valuable lessons as a result of Tropical Storm Isaias and we’ve carried forward numerous improvements that have changed how we communicate during storms. We are intent on winning over ‘hearts and minds’ in Connecticut by demonstrating our commitment to both customers and Connecticut leadership, at a time when we must work together to deliver a new clean energy future.”