From First Selectman Dan Rosenthal, who testified in the matter on behalf of Newtown residents, to the governor, officials and even state AARP leadership are reacting to the April 26 final ruling from the state Public Utilities Regulatory Authority (PURA) against Eversource and United Illuminating’s preparation and response to Tropical Storm Isaias last year.

The decision adopted unanimously Monday by PURA also could lead to the imposition of civil penalties. PURA chairwoman Marissa P. Gillett said the authority will move immediately into the next phase of its proceedings and that action could happen as soon as next week, according to CTMirror.

Following a draft decision from PURA released in late March, the Newtown first selectman was already calling for “fines and penalties... in holding Eversource to account so that our residents never experience again what they did last August.”

At the same time, Rosenthal emphatically asserted that the issue was never about frontline Eversource workers, “as they have always shown up and done their best; it was a management failure.”

PURA officials agreed. And while the authority did not announce specific financial data, the utilities — which can challenge this ruling in Superior Court — stand to lose millions of dollars.

Following the ruling, Eversource spokeswoman Tricia T. Modifica acknowledged, “There are many areas for improvement that we are already addressing, and we continue to work in good faith with our communities, customers, and regulators to improve our performance. [The PURA final] decision deserves careful consideration and review, and we are committed to moving forward in the best interest of our customers.”

While UI does not serve Newtown as its electricity utility, its spokesperson expressed disappointment that fines were likely in the offing, noting that PURA already found the utility, “generally met the standards of acceptable performance and conducted itself prudently and efficiently.”

Rosenthal told The Newtown Bee following the final ruling that he was “pleased the draft opinion we all applauded in March has now been made official without revision by PURA.”

“Our residents knew in August [2020] that Eversource did not meet its obligations as a public utility in the immediate aftermath of Storm Isaias and based on the remarks made by the PURA Commissioners today, they agreed in frank and forceful terms,” the first selectman said. “Now, sanctions, civil penalties, and enforcement orders will be considered and rightly so.”

‘Accountability Is Critical’

Rosenthal’s remarks were echoed by Governor Ned Lamont, who said, “PURA announced today what we have known since Tropical Storm Isaias hit our state last summer —– Eversource and UI were not adequately prepared to serve their ratepayers to keep the lights and air conditioning on during a significant storm.”

“Accountability is critical for all ratepayers across our state, and that is what is happening now,” Lamont added, pointing out that he signed a bill into law following the storm “to provide additional support to ratepayers and advance our commitment to a more resilient, reliable, and performance-based electricity system.”

State Attorney General William Tong admonished the utility saying, “Eversource failed and must regain our trust.”

“Their failed response to Isaias put lives in danger, and left families in the dark and disconnected during a deadly pandemic,” Tong continued. “PURA’s strong decision correctly concludes that Eversource was ill-prepared and poorly managed throughout the storm crisis. PURA has rightly opened the door to strong penalties and corrective action, and we will continue to advocate for full accountability at every step of this process.”

In a brief to PURA filed on February 5, 2021, addressing Eversource’s Tropical Storm Isaias failures, Tong argued that Eversource:

1) was imprudently unprepared to communicate with its customers during the Tropical Storm Isaias emergency;

2) imprudently administered the Make Safe phase of the storm response related to road clearing; and

3) ineffectively implemented its town liaison program during the critical early days of the public safety emergency.

He said PURA’s final decision correctly concludes that Eversource failed to comply with the applicable performance and prudence standards for each of these fundamental areas of storm preparedness and response.

Tong intervened immediately last August on behalf of Connecticut ratepayers in PURA’s investigation into the response by both Eversource and United Illuminating to Isaias. At the urging of Attorney General Tong, PURA agreed to open a contested case and prudence review — legal proceedings that enable the Attorney General to make the strongest possible claims on behalf of ratepayers and the state, to seek fines, penalties and injunctive relief, and to oppose the utilities’ requests for profits and reimbursement of storm-related costs.

PURA has robust authority as the state’s principal regulator and the legal forum to investigate and pursue such claims against state utilities. The Office of the Attorney General issued 58 interrogatories in the proceeding, questioning both Eversource and United Illuminating on all facets of their storm preparation and response.

Connecticut AARP applauded PURA on the ruling.

John Erlingheuser, AARP Connecticut advocacy director, said state consumers already pay the highest electrical rates in the continental United States, and as the long-term effects of the COVID-19 pandemic continue, it is unfair to add to their burden.

“PURA’s ruling today imposes a reduction in a return on equity for both companies that will result in savings for ratepayers,” said Erlingheuser. “AARP has maintained that the Connecticut utility company response to Tropical Storm Isaias was disastrous and far short of the customer service and competence ratepayers already overpay for in existing rates. It was unacceptable that so many people waited so long for power restoration, causing a loss of food, medicine, and peace of mind during a once in a century pandemic. The breakdown in communication with ratepayers was unacceptable.”

Joining With Neighbors

Newtown joined with New Fairfield and Ridgefield, making all three communities parties to a PURA investigation of the electrical utility. By joining with the other two neighboring communities, Rosenthal explained, the expense for retaining Cohen & Wolf was split evenly three ways, lowering the expense for taxpayers of the involved communities.

The August 4 storm affected more than 1.1 million customers, leaving some without power — amid a coronavirus pandemic and hot summer temperatures — for up to nine days. The eight-month-long investigation considered more than 500 written public comments, including 46 sets of statements from public officials, with the overwhelming majority centered on monetary losses from spoiled refrigerator items and fuel for back-up generators.

Complaints also centered on customers and government officials being unable to reach Eversource — and, to a lesser extent, UI — to report outages and downed wires or to get restoration updates. As such, state regulators took stronger action against Eversource, the state’s largest utility.

They concluded the utility failed to adequately manage its municipal liaison program, execute all safety protocols, communicate critical information to customers, or secure adequate resources to restore power in a timely fashion.

Eversource countered in a report last September that its response to the second-most destructive storm of the past decade was both swift — especially given challenges posed by the pandemic — and within the parameters of the emergency response plan on file with state regulators.

Wednesday’s decision by the authority will require Eversource to reduce its allowed rate of return on equity — a measure of profitability relative to assets and liabilities — for transmission costs by 0.9 percentage points.

PURA’s Gillett noted that Eversource reported $327 million in income last year.

Wednesday’s decision also orders both utilities to increase their numbers of line repair workers, damage assessors, communications liaisons, and other emergency response personnel. It also requires Eversource and UI to submit to a comprehensive audit of their management costs and prohibits them from recovering these expenses from customers.

CTMirror content by Keith M. Phaneuf was used in this report. Associate Editor John Voket can be reached at john@thebee.com.