HARTFORD, Conn. (WCBS 880) — Connecticut regulators heard calls Monday to break up the state's largest electric utility in the wake of large rate increases and lengthy delays in restoring power following Tropical Storm Isaias.
The Public Utilities Regulatory Authority held what was expected to be a day-long hearing by videoconference on Eversource rate hikes that went into effect on July 1, which bumped up some bills by hundreds of dollars.
"This moment when families are struggling to put food on the table and pay their rent, Eversource raised its rate, not by a little bit, but astronomically, which is unforgiveable," Sen. Richard Blumenthal said. "It's a betrayal of trust by a public utility and at a time when this company is rolling in money, their profits during the last quarater were seven times what they were the same quarter last year."
Eversource officials say regulators approved the fee increases and a contributor to the higher bills was increased electricity usage in July because of hot weather.
Those hikes were followed by the Aug. 4 storm that knocked out power to hundreds of thousands of homes and businesses, leaving many customers in the dark for more than a week.
Blumenthal suggests breaking up Eversource and creating small utilities in the state that would be owned by the public and be more responsive to the public's needs.
"Connecticut really need to think big and bold, reimaging smaller," Blumenthal said.
He pointed to the municipal utility in Norwich as an example of a more responsive public utility.
Blumenthal also attacked the way Eversource gets a guaranteed profit regardless of the economy or its performance.
"Put people ahead of profits, cut the tens of millions of dollars that these top executives are recieving every year in compensation, unlinked to performance, and the profits unlinked to performance."
Gov. Ned Lamont agreed, saying profits must be tied to performance and there must be accountability and penalties for poor performance.
Almost 1,000 have asked to address the public hearing.