Connecticut Politicians and Mega-Utility Battle Over Power Outages; Taxpayers Lose With Both

An unprecedented nor’easter that ravaged the northeast last weekend with snow, wind, ice, fallen trees, and downed wires, left more than 820,000 Connecticut residences and businesses without electric power as of last Sunday. Some in Connecticut and Massachusetts remained still, after a week, without power. The storm arrived just two months after Tropical Storm Irene left nearly the same number of customers without power, some also for a week.

Many school districts in Connecticut have been closed for a full week, with school buildings that have generators having been turned into shelters for those needing hot meals and protection from evening subzero temperatures. Long lines at gas stations, reminiscent of the Carter presidency shortages, became a familiar sight in some areas. Halloween was officially “cancelled” in many towns, and many small businesses, already struggling due to both the economy, in general, as well as recent tax increases in Connecticut, have now suffered two full weeks of losses this year due to the lack of power.

Connecticut Light & Power (CL&P), a subsidiary of Northeast Utilities (NU), the state’s main electric utility,  reports that storm-related repairs are expected to cost between $75 million and $100 million. The company, which, like other utility companies affected by the storm, had to import line crews from other states, set a goal of 99% restoration of power by midnight, November 6th, a goal it was unable to meet.

But the serious tangle of trees and wires on the ground also mirrors the messy mixture of honest outrage of Connecticut residents and the political grandstanding of the state’s Democratic politicians who have had, in fact, a marriage of convenience with the mega-utility. 

In response to the anger and frustration of Connecticut residents and businessowners, there is plenty of Democratic finger-pointing and blaming to go around. Democratic and Working Families Party Governor Dannel Malloy, and Democratic lawmakers, are vowing to hold CL&P’s feet to the fire. Democratic Speaker of the State House, Christopher Donovan, a candidate for Congress, has suggested that CL&P be fined for not restoring power to customers sooner. Democratic Attorney General George Jepsen has called for an investigation into the utility company. And Jeff Butler, chief operating officer of CL&P, appears always ready to draw fire with his statements about how the company is “frustrated” that it has not been able to obtain more line crews, and how it has not met its stated goals. An interesting cast of characters, many of whom are also prepping Connecticut residents for rate increases to pay for the restoration for two major storms or “fines,” if they are imposed.

There are some legitimate problems with CL&P.

Just two months ago, the governor’s office and the utility company did a review of restoration following Tropical Storm Irene. The suggestion was made that the company did not have sufficient crews coming into the state to help with restoration. Admittedly, Mr. Butler stated that he did not have sufficient crews this time around either, so why was the problem not fixed? Is there a reason why out-of-state crews do not want to work in Connecticut, or is there an obstacle preventing their arrival? Why does the operation appear to be so disorganized? Could smaller companies that compete with each other, by providing the best possible service at the least expensive rates, be the answer?

Clearly, these are issues that require investigation, and it is the state’s job to protect its citizens, though most Connecticut citizens do not feel protected by a governor and legislature that imposed on them the largest tax hike in the history of the state in order to bend over backwards for state union leaders.

On other occasions, Democratic lawmakers in Connecticut have managed to find CL&P quite convenient to have around. For example, last year, when Connecticut citizens were due to actually receive an electricity rate decrease, the Democratic legislature decided, unsurprisingly, to reduce the state’s debt by maintaining artificially high electric rates for CL&P customers only, i.e. a “hidden tax,” for the purpose of paying down the state’s large budget deficit, which was caused by continued spending on unfunded mandates of union pensions and benefits and social programs. About the “hidden tax” tacked onto his customers’ electric bills, Jeff Butler, then president of CL&P, said, “With this bill, the legislature is effectively imposing a hidden tax on only a portion of Connecticut taxpayers – our Connecticut Light and Power customers. It is a blatant gimmick; it slips additional taxes into electric bills to temporarily plug a massive budget hole. “

It took State Senator Joseph Markley, a conservative Republican, to get the legislature to abolish the tax, but what Democrats would not do, along party lines, is repay CL&P customers for what they were already “falsely” charged. Nice job, state legislature.

Connecticut electric customers should also not forget the relationship between former aide to President Obama, Daniel Esty, Governor Malloy’s recently appointed commissioner of the combined Department of Energy and Environmental Protection (DEEP). Mr. Esty, a former paid consultant to Northeast Utilities, CL&P’s parent company, was involved in a recent conflict of interest controversy when he intervened in the state’s regulatory agency’s draft decision to reject CL&P’s application to install “smart meters” to businesses and residences of the state. In addition, NU executives were found to have contributed $2,000 to the congressional campaign of Commissioner Esty’s wife, Elizabeth Esty. With appearances of conflicts all around, even Democrats told Governor Malloy that Mr. Esty needs to go. The governor, however, begged to differ.

The point is, perhaps CL&P deserves outrage from Connecticut’s ratepayers for the poor performance in restoring electricity to its customers, but where is the outrage from Connecticut’s taxpayers, likely those same people, toward Democratic lawmakers for “stealing” their money and hiding the devious deed in a utility “tax?” Where is the outrage when Governor Malloy appoints Mr. Esty, with ties to Northeast Utilities, to a new commission that affords the convenient combination of both energy and environment, i.e., “green” energy?” Where is the outrage when Commissioner Esty seeks to promote the CL&P business enterprise of selling “smart meters” to ratepayers, despite the facts that the “green” tools will not likely save money for customers, and that they hold serious questions regarding privacy and health safety?

Who exactly is looking out for Connecticut’s taxpayers? Fortunately, there’s a few lawmakers, like Senator Markley, who really know what their jobs are about. Connecticut citizens should make sure they elect more like him. Otherwise, it appears they will be left in the dark.