NEW BRITAIN, CT – Today, the Office of Consumer Counsel (OCC) filed a comprehensive brief with the Public Utilities Regulatory Authority (PURA) in Docket No. 25-12-13 challenging Eversource Energy’s request to recover $1.28 billion in catastrophic storm costs, urging PURA to significantly reduce the amount charged to ratepayers after uncovering pervasive errors, weak oversight and repeated instances of imprudent decision making throughout Eversource’s filing. Following an extensive audit and investigation, OCC recommends that PURA approve no more than $689.5 million, or as little as $484.5 million if existing storm reserves are applied against the principal. OCC also argues that Eversource’s unprecedented request for $304 million in carrying costs should be denied in full.
“Eversource came to regulators with claims of an open and shut case and a $1.28 billion bill, but my team’s investigation found widespread errors, inadequate oversight and cost controls, and repeated instances of imprudent spending that drove costs far beyond what customers should pay back. After a detailed investigation, we found hundreds of millions in unjustified costs, ranging from excessive staffing and standby charges to unsupported invoices and grossly exaggerated travel times. Ratepayers should not be paying for luxurious private jet travel and needless purchases of candy and junk food. Not only does the record show the need for a serious haircut to Eversource’s request, but also the importance of improved accountability and performance standards to ensure ratepayers have stronger safeguards from unjustified costs going forward,” said Consumer Counsel Claire Coleman.
OCC’s brief outlines hundreds of millions of dollars in unjustified costs, including:
- $175 million reduction for unreliable and error-filled invoices that Eversource failed to properly review;
- $79.6 million reduction for excessive staffing and vendor over-deployment beyond PURA-approved Emergency Response Plan (ERP) levels;
- $22.6 million reduction for storm events that do not meet eligibility thresholds;
- $4.2 million reduction for materials that provide ongoing utility value beyond storm restoration;
- $5 million reduction for improper employee stipends and awards;
- $2.7 million reduction for vegetation management costs already recovered in rates;
- $304 million disallowed entirely for unlawful and premature carrying costs.
OCC also highlighted an additional $205 million in available storm reserves that could further offset ratepayer costs in this proceeding.
The brief also documents excessive and unreasonable spending, including luxury travel arrangements, inflated mileage reimbursements, and contract terms that guaranteed premium pay regardless of necessity. In fact, OCC’s review found that Eversource consistently over-secured crews, relied heavily on costly out-of-state vendors, and failed to adjust deployment even when restoration timelines improved. As a result, during the period of review from 2018 to 2023:
- Average cost per trouble spot, or root cause of an outage, increased from approximately $3,400 to over $9,100;
- Average cost per customer restored rose from $130 to as high as $865;
- Total restoration costs increased 160% to more than 500% compared to earlier years.
In addition, OCC’s review found that only 39% of Eversource’s required post-storm reports met compliance standards under Connecticut General Statutes § 16-32h. As a result, OCC urges PURA to consider imposing a return on equity (ROE) penalty in Eversource’s next rate case to ensure stronger utility performance and accountability.
Beyond immediate cost reductions, OCC’s brief highlights the need for systemic changes including more frequent and rigorous reviews of storm costs, improved cost controls and vendor management practices, enhanced data analysis and planning within the state’s Emergency Response Plan (ERP) framework. OCC will continue advancing these reforms in upcoming PURA proceedings.
Today’s brief is the result of a multiyear investigation and review of Eversource’s storm costs by OCC. In reviewing these costs to ensure that ratepayers pay not a cent more than is necessary, OCC, as well as PURA’s Office of Education, Outreach, and Enforcement, issued thousands of interrogatories, reviewed millions of pages of invoices and documentation, and conducted hours of cross examination of Eversource witnesses. Without doubt, the present proceeding is one of the most difficult endeavors that OCC has undertaken. Consumer Counsel Coleman thanks her staff for their tireless efforts on behalf of the State’s ratepayers; the zeal of their advocacy is demonstrated by OCC’s comprehensive analysis of Eversource’s application and extensive briefing.
Read OCC’s brief.
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Media Contact: Brooke Parker
brooke.parker@ct.gov | 203-540-7154
About the Office: The Office of Consumer Counsel (OCC) is an independent state agency that represents the interests of consumers of Connecticut’s electric, natural gas, telecommunications, and private water companies before PURA, federal regulatory agencies, the legislature and courts. OCC’s team of attorneys, accountants, financial and policy analysts appear before PURA to argue for the most reasonable rates while expecting the best utility service possible for all customers.