Cheshire Energy Commission Approves Letter to PURA Over Eversource Storm Cost Recovery

Other Committee · Meeting of March 29, 2021

CT CHESHIRE — Cheshire Energy Commission unanimously approves letter to state regulators challenging Eversource storm cost recovery. The commission voted at its March 29 meeting to send a letter to the Public Utilities Regulatory Authority urging that ratepayers not be held responsible for storm restoration costs if an ongoing investigation finds Eversource negligent in its preparation, supervision, or response. The letter, drafted by member Chris Smith, was amended at the meeting to include language about "supervision of storm response" after member Dan Knudsen argued the phrase better captured the utility's obligations.

Member Ryan, who disclosed he works for Eversource, told the commission that internal procedural changes implemented about a year ago "have drastically slowed down workflow," with crews sometimes waiting hours before being cleared to work. The commission agreed to develop a separate, more detailed communication to PURA on performance-based utility regulation, with Smith and Knudsen assigned to draft it for a future meeting.

In the full story:

• The complete report — 900 words

Source: the Other Committee meeting of March 29, 2021, reported from the official video recording and transcript.

CHESHIRE — March 29, 2021 — The Cheshire Energy Commission voted unanimously to approve a letter to the Public Utilities Regulatory Authority urging the state regulator not to hold ratepayers responsible for storm costs if Eversource Energy is found to have been negligent in its preparation and response.

The commission also approved amendments to the February minutes and discussed a range of active energy projects, including a nearly completed athletic field lighting retrofit and a performance contract review that is months overdue.

The Full Story

The letter, drafted by commission member Chris Smith, was the centerpiece of the March 29 meeting. It was prompted by public statements from Eversource's chief executive to shareholders expressing confidence that the utility would be permitted to recover costs from ratepayers stemming from recent severe storms, including Tropical Storm Isaias. Smith framed the letter as a measured response, not a rush to judgment.

"I was very careful to articulate that while we do certainly support cost recovery efforts from ratepayers for infrastructure, for upkeep, for storm response, the rate payers should not be held responsible for costs that in any way are attributable to the utility's continued alleged poor preparation and planning for forecasted severe weather events." [No timestamp index supplied] — Chris Smith, commission member

Commission member Dan Knudsen proposed adding language to the letter that would address the adequacy of Eversource's supervision of storm response crews, citing personal observations of work crews waiting hours before receiving authorization to begin repairs. After brief debate over whether Eversource's procedural delays reflected poor supervision or internal safety policy, the commission agreed to insert the phrase "supervision of storm response" into a key sentence holding the utility accountable if negligence is found.

Commission member Ryan, who identified himself as an Eversource employee, offered firsthand context on internal procedural changes that have slowed crew deployment since the company transitioned from NSTAR.

"We had procedural changes about a year ago that have drastically slowed down workflow. Something is supposed to be switched out at eight o'clock, it's not getting switched out till noon, one o'clock, but the people that are there to do the work show up at eight o'clock." [No timestamp index supplied] — Ryan, commission member

A separate question arose over whether to include language about performance-based revenue mechanisms, or PBR, which Dan Knudsen argued could give PURA a structural tool to hold utilities accountable beyond a single storm docket. The commission ultimately agreed to keep the two issues separate, sending the storm-focused letter immediately and tasking Smith and Knudsen with developing a standalone PBR communication for a future meeting.

"I think that this actually is something we could really be beneficial to look at if we were to move to that — maybe a longer-form, dedicated avenue to pursue on this." [No timestamp index supplied] — Chris Smith, commission member

On other matters, commission member Dan Bombaro reported that the McClary athletic complex lighting retrofit was nearly complete, with contractors having powered up the new LED system over the preceding weekend. He said the lighting at center field measured approximately 60 foot-candles during initial tests, before final aiming and balancing, compared to a major league baseball field standard of roughly 100. He added that the old lighting had depreciated to roughly 20 percent of its original output after two years.

Bombaro also noted that 17 Cheshire homes have enrolled in the home energy services program and that the I Heart My Home initiative has reached 130 buildings and 230 residences. The commission asked members Walt and Dan Knudsen to coordinate a new social media push to increase Cheshire participation before the program's expiration, though no member could confirm the exact end date.

The commission discussed a year-six measurement and verification report due under the town's performance contract with Amoresco, with the person responsible for the annual review no longer employed there. Bombaro said Amoresco intends to complete the review in April and that the deadline runs through May.

Staff member Dan Bombaro noted that Emily Basham of the Connecticut Green Bank had acknowledged receipt of a list of potential municipal solar project sites and would begin a desktop analysis using aerial imaging tools.

Why It Matters

Cheshire ratepayers face the prospect of absorbing costs Eversource says it expects to recover following recent severe storms, including Tropical Storm Isaias. The commission's letter to PURA enters an open regulatory docket investigating the utility's storm response and becomes part of the public record regulators may weigh before issuing a ruling. If PURA sides with Eversource, Cheshire customers could see those storm costs passed through to their bills. The commission has also signaled plans for a separate, more detailed submission on performance-based utility regulation, which could have longer-term implications for how the state oversees Eversource's rates and maintenance practices.

Key Motions & Votes

- Vote: Approve February 22 meeting minutes as amended Tally: Approved unanimously

- Vote: Add the PURA draft letter to the meeting agenda under new business Tally: Approved unanimously

- Vote: Amend the PURA letter to add "supervision of storm response" language to the sentence regarding Eversource's alleged poor preparation Tally: Approved unanimously

- Vote: Approve the amended PURA letter for submission on town letterhead, with Chris Smith and Dan Bombaro to execute the agreed language change Tally: Approved unanimously

- Vote: Adjourn Tally: Approved unanimously

Source

Cheshire's community access TV: Energy Commission meeting, March 29, 2021