Fines against utilities questioned

Fines against utilities questioned

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Should power companies be fined for their response to the October snowstorm?
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Fairness of fines against utilities for storm response questioned

AG wants fines for alleged inadequate response

Updated: Wednesday, 08 Aug 2012, 5:37 PM EDT
Published : Wednesday, 08 Aug 2012, 4:31 PM EDT

NORTHAMPTON, Mass. (WWLP) - The state’s three biggest utility companies could be facing millions of dollars in fines from the state due to their response to major storms last year, but some utility customers don’t think it’s fair.

Over the last month, Attorney General Martha Coakley has sought fines of $16 million against National Grid , $9.7 million against NSTAR , and $4 million against Western Massachusetts Electric Company .

The most recent request was for the fine against NSTAR, which serves customers in the Boston area, the South Shore, Cape Cod, and Martha’s Vineyard. A 34-page brief of the investigation conducted by Coakley's office was filed with the Department of Utilities on Tuesday.

The AG’s investigation, prompted by Newton Mayor Setti Warren, found NSTAR didn't anticipate the severity of two storms last year. State officials say number of customers who were in the dark during Tropical Storm Irene and the October snowstorm were two to five times the average amount.

Still, some question the need for the fines. Thomas Steiniger, a father of two from Florence, says the storms were unpredictable.

“I felt they did the best they could under those circumstances,” said Steiniger, who lost his power for three days. “I don't think anyone could have really foresaw such an intense snowstorm. Something of that caliber was really unusual.”

If the companies are fined, shareholders will need to pay for the penalties. The fines will not be passed down to the customer.

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