The S&P has downgraded the credit rating of both Eversource Energy and Avangrid, and their Connecticut-based subsidiaries.
According to the S&P’s review of the two companies, the action was taken because of Public Utilities Regulation Authority’s (PURA) management, regulations and debt.
If you ask Republican House Leader Rep. Vincent Candelora (R- Durham, East Haven, Guilford, North Branford), however, Gov. Ned Lamont is at fault. At a press conference on Dec. 19, he said a primary problem is that PURA is supposed to have five board members, but there are only three.
“We are calling on the governor to make the appointments as required by state law,” Candelora said. “There are two vacancies who he has not filled over the last two years and there are three people whose terms have all expired and they have not been reappointed.”
Candelora claims that Lamont’s decision to not fill the board is tantamount to Lamont saying he doesn’t need to follow the law.
“The law requires it. It says ‘shall,’ there is no room for a will or a when,” Candelora said. “And quite frankly, what we’ve seen over the last few weeks, where we have many agencies that are flagrantly breaking the law, this is just another example of discarding what is on the books.”
Candelora believes this behavior trickles down. He referenced a recent controversy about Lamont’s former Chief of Staff, Jonathan Dach who allegedly used two state cars for personal trips, including out of state travel and bars. These personal trips amounted to more than 2,000 miles worth of travel on the taxpayers’s dime, Inside Investigator reported.
“Where there’s smoke, there’s fire,” Candelora said.
Candelora has other problems with PURA. He cited the organization’s reluctance to approve costs for utility companies and its delayed decision-making.
He specifically mentioned the contract with Eversource on how to construct smart meters. PURA has not guaranteed that Eversource will be reimbursed for the cost of installing meters, which has delayed the construction process. The longer this takes the more money it will cost, Candelora said. This is because the cost of construction is only increasing over time.
There was also the delayed agreement between Millstone Nuclear Power Plant and the state. This contract was settled years after it was initially proposed and the delayed signing, combined with PURA delaying a requested rate increase by a year, meant taxpayers had to eat two year’s worth of rate increases in a matter of months.
“Had they all been spread out and smoothed over… people wouldn’t have seen such volatile electric bills. There might have been increases, but you wouldn’t have seen—everyone has forgotten, three years ago we had a decrease… this traumatic spike in August,” Candelora said.
Critics of the Millstone project argue that the cost of it will always be too high. Currently, 77% of the public benefits charges go toward Millstone. Some Democrats say that the agreement never should have happened to begin with.
The S&P downgrades will have tangible impacts on Connecticut residents. It will result in yet another rate hike, Candelora said.
“At a time that people are continuing to suffer with their electric bills, we continue see this countless downgrades that are only going to increase borrowing for our utility companies and increase cost to rate payers,” he said.
The Republicans have proposed multiple solutions to their problems with PURA in the past. But it starts with filling all of the appointments, Candelora said.
Candelora mentioned Rep. Holly Cheeseman (R- East Lyme, Salem) as a potential appointee. She lost her most recent election. However, she was on the Energy and Technology Committee for eight years and was a ranking member of the Finance, Revenue and Bonding Committee.
“She has shown an ability to bring all sides together and bring solutions to the table,” he said. “That would be somebody that would come to mind immediately. I have had a conversation with the Governor about going to five, and he should take her under consideration.”
This would even out the balance of power between Democrats and Republicans and make PURA more effective, Candelora said.
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Candelora’s claims about the law and vacancies on the board are certainly valid points, but Lamont is ultimately correct in that it will make no difference whatsoever because the governor has the power to appoint his desired outcomes. If Michelle was ever “out-voted” by the two current or existing members on the board (one Republican, one Democrat), I think it’s likely the Governor pre-ordained the D-Vote to make PURA look less like the Dictatorship it actually is. Michelle is a soldier. She’s smart, and she’s ruthless. Her own party is terrified of her. It’s not difficult to understand why Lamont’s deep admiration of Gillette never seems to tire or wane. But I think PURA, and this Administration in particular, might find themselves on the wrong side of history when it comes to this ongoing war with the Utilities. The ratepayers don’t care about the pissing match or who has the bigger d**k at the end of the day—they care about their bills, their families, keeping the lights on in their homes, and food on the table so their children can eat. And they care now. Right now. I somehow suspect 2025 may turn out to be “The Year of Regrets” for the Lamont Administration. But only history can tell, as it always does.
Merry Christmas Ya’ll. Good article, Alex:)