State mulls cut in utility profit over outages - 13 WTHR Indianapolis

Connecticut regulators have harshly criticized the state's biggest utility. They point to its "deficient and inadequate" handling of two massive storms last year and are threatening the possibility of cutting its allowed profit as punishment for extensive outages affecting hundreds of thousands of customers.

The Public Utilities Regulatory Authority issued its final decision in a months-long review of how Connecticut Light & Power prepared for and responded to Tropical Storm Irene in late August and a freak October snowstorm.

Regulators said CL&P failed to get adequate help before the October storm and that its response was deficient.

"The Connecticut Light and Power Company's performance in the aftermath of the 2011 storms was deficient and inadequate in the areas of outage and service restoration preparation," regulators said in their 119-page decision.

Regulators did not say how much it may reduce CL&P's profit. They said a reduction in the next ratemaking proceeding would serve as penalty and spur incentives for improvement.

CL&P has no rate requests pending and has not submitted a request for recovery of storm-related costs, which regulators also said they may reduce. The utility has estimated that costs may total as much as $290 million for the two storms.

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