A prospective $103.4 million settlement over Eversource”™s performance during Tropical Storm Isaias has been reached with the state, Gov. Ned Lamont and Attorney General William Tong have announced.
The deal, which must be approved by the Public Utilities Regulatory Authority (PURA), directs $65 million in Eversource funds to be immediately returned to customers in the form of two credits on their December and January bills. The average customer will see a $35 total credit.
The utility further has agreed not to appeal a $28.4 million penalty levied by PURA due to the inadequate response to Isaias. Ratepayers are currently seeing that as a credit on their bills under “TS Isaias Performance Penalty.”
In addition, Eversource has agreed not to apply for a rate increase until at least January 2023, for rates that could not take place until at least January 2024.
The remaining $10 million will be used to assist customers who are having difficulty paying their utility bills. All customers are currently eligible to participate in a 24-month payment plan ”“ without fees or interest ”“ to pay down any arrearage they have and to avoid any service disconnection. Residents are encouraged to contact Eversource at 800-286-2828 or visit www.eversource.com/billhelp to access assistance.
The agreement will further require Eversource to create a new Connecticut-based president of Connecticut Light & Power to improve local accountability and control and to add new seats to its governance board for representatives from Connecticut.
Eversource will also commit to continuing and enhancing its Connecticut-based training and apprenticeship programs to ensure statewide access to line worker career opportunities and adequate staffing of line workers in Connecticut.
Tropical Storm Isaias, which hit the area on Aug. 4, 2020, left up to 800,000 Eversource customers without power, many for over a week.
“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 failed its Connecticut customers and put families at risk after Tropical Storm Isaias. That cannot happen again,” Tong, a vocal critic of the utility”™s Isaias performance, said. “This agreement forces significant governance changes at Eversource to bring much needed local control and oversight.
“This is a powerful agreement,” he continued, “but Eversource still has a lot of work ahead to earn back Connecticut”™s trust. I will be watching carefully to ensure every term of this agreement is honored, and that Connecticut families finally receive the safe and reliable service they deserve.”
“This settlement provides tangible relief for our customers as we continue to deal with Covid-19 and prepare for the heating season,” an Eversource spokesman said. “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,” he added.
