‘Sorry for the stress’ of Isaias response, Eversource CEO tells CT legislature
Eversource Chairman, President and CEO James J. Judge took the heat yesterday from the Connecticut state legislature”™s Energy & Technology Committee over the utility”™s response to Tropical Storm Isaias.
It was Judge”™s first public appearance since the storm hit Connecticut on Aug. 4. He told legislators that he was “sorry for the stress and anxiety that customers and communities are feeling as a result of this devastating storm,” and that “the issue comes down to the mistakes that a company made.”
The storm left an estimated 800,000 to 1 million Eversource customers without power for as much as a week ”“ some for even longer ”“ and has resulted in hearings by the Public Utilities Regulatory Authority (PURA) as well as calls by the likes of Gov. Ned Lamont and U.S. Sen. Richard Blumenthal (D-Connecticut) that the utility be broken up, and/or Judge and other leadership fired.
While Judge insisted to the committee that “the storm was much more impactful and widespread than anyone expected,” the University of Connecticut”™s engineering school released a report that it said had been delivered to Eversource ahead of Isaias, predicting widespread damage. The utility said it received the report too late to make changes in its preparations.
“We tripled the number of restoration crews in our system within the first 48 hours,” Judge said of Eversource”™s highly criticized response. “We continue to add unprecedented amounts of resources to accelerate our restoration.”
Committee co-chair state Sen. Norm Needleman (D-Essex) told Judge: “Pretty much unanimously, everybody in the state of Connecticut believes that your company operates for the benefit of shareholders and the benefit of the executive. I believe that a more holistic approach needs to be taken. You need to demonstrate that to the public continually and be more sensitive to the ratepayer and less focused on reminding shareholders in the midst of a terrible power outage, that they don”™t have anything to worry about, the share price is going to do just fine.”
Judge ”“ who received $19.8 million last year as head of Eversource, a 33% increase from 2018 ”“ said he expected to take a pay cut this year, in part because of public outcry over the response to Isaias.
“I agree I”™m extremely well compensated,” he said. “I know how well I”™m paid. I also know that the compensation is very much in line with CEOs of similar sized utilities.”
Tony Marone, president and CEO of Networks of Avangrid, which operates the state’s other major electricity supplier, United Illuminating, makes nearly $1.9 million a year, while Con Ed Chairman, President and CEO John McAvoy receives an annual $15.3 million.
As for whether Eversource plans to compensate customers for spoiled food, prescription drugs and other damages, Judge stood by his company”™s earlier statement that it would not, as something like Isaias is an “act of God.” Con Edison in New York has announced it will reimburse its customers for such losses.
The utility is expected to deliver a report on its response to Isaias to PURA by Sept. 8.