PURA approves roughly $668 million in Eversource storm costs, denies $397 million in retrospective carrying charges

The Public Utilities Regulatory Authority adopted a final decision in Docket 251213 finding roughly $668 million of Eversource Energy's deferred catastrophic storm costs for 2018'2023 eligible for recovery from ratepayers, while denying the company's request to recover approximately $397 million in retrospective carrying charges.

In a detailed procedural summary, PURA staff member Steve Capozzi said Eversource's total incremental deferred storm cost request eventually totaled approximately $980 million for 43 catastrophic events (plus 10 prestaging events) with carrying charges the company sought that were estimated at $397 million, producing a combined request approaching $1.4 billion. Capozzi summarized the decision's adjustments and findings that produced the lower eligible amount: "The net impact to rate payers for the 2018 to 2023 storm costs that are eligible for recovery by Eversource from rate payers is approximately $668,000,000," he said.

Capozzi listed major reductions the decision adopted: denial of $397 million in retrospective carrying charges; removal or reduction of outside-vendor, materials, vehicle, lodging and certain employee costs; exclusion of one storm that did not meet the catastrophic threshold; an approximately $16 million reduction after removing three events that lacked evidence they qualified as catastrophic; a roughly $1.1 million reduction tied to transportation by private aircraft; and an extrapolated $7.6 million adjustment for confirmed vendor cost errors. The decision also excluded approximately $63 million of costs tied to ongoing audits and settlements pending separate resolution.

After accounting for approved deferred storm costs (about $861 million) and offsets including $91 million already paid by customers, $2.6 million in mutual aid revenue and a $100 million ratepayer-funded credit authorized in a prior decision, staff reported the eligible amount for recovery totals roughly $668 million, plus any prospective carrying charges the authority authorizes going forward.

Commissioners praised staff work but emphasized the procedural problem of accumulating multi-year storm balances. Commissioner Jan Beecher said the order "is grounded in sound and established regulatory principles" but reiterated caution about awarding equity-like returns on operating expenses. Commissioner Holly Cheeseman commended the "deep dive" into history and urged that lessons lead to improved resilience and smoother recovery. Commissioner Everett Smith, noting he joined PURA six months earlier, outlined a three-part proposal to avoid future accumulation: an annual review schedule, a standing storm-cost financing mechanism to replace ad hoc securitizations, and a digitized reporting system to improve timeliness and reduce review errors.

After discussion, a motion to consider Item 2 was moved and seconded and the panel adopted the final decision by roll call; all commissioners voted yes. Chairman Tom Wheel said the law requires the authority to allow recovery of prudently incurred deferred costs and noted the panel inherited the multi-year accumulation of storm-related balances. The Authority recorded the final decision in the docket; details on specific disallowed items and the audit-related exclusions are in the written order.