State utilities now face stiff emergency fines
Utility companies that fail to adequately respond in an emergency will face severe penalties under legislation passed by the Massachusetts House and Senate yesterday.
The bill gives increased power to the Commonwealth to issue directives to utility companies during a declared state of emergency. According to the bill’s cosponsor, Senator Michael W. Morrissey, Democrat of Quincy, the legislation was written in response to the poor performance of Unitil Corp., a utility company based in New Hampshire, after a devastating ice storm last year.
“We can never have a repeat of December 2008,’’ Senate President Therese Murray, Democrat of Plymouth, said in a statement. “Utility companies have a responsibility to respond to their customers. This bill makes sure they live up to that responsibility.’’
In the aftermath of the December storm, Unitil Corp.’s 28,000 customers in Fitchburg, Ashby, Lunenburg, and Townsend were left without power for as long as two weeks.
“This is absolutely in response to Unitil’s performance,’’ said Senator Jennifer Flanagan, Democrat of Leominster. “Their lack of attention to management during the crisis was deplorable.’’
Unitil did not return a request for comment last night.
The law sets down new requirements for filing emergency response plans to the state Department of Public Utilities and gives the department broad new powers to investigate and fine utilities that underperform.
Some of the new regulations and penalties include: fines of up to $250,000 per day, per violation for poor emergency response and management, capped at $20 million; fines of up to $1 million for failing to respond to DPU orders, with all fines being returned to rate payers; and the DPU can order changes to emergency response plans that are found to be inadequate.
“This bill forces companies such as Unitil to take a look at the business they’re doing in Massachusetts and make sure they’re on the ball,’’ she said.
In addition, the law, which now goes to the governor for signing, allows the attorney general to petition the courts to place a utility company of under 100,000 customers that has violated emergency standard into receivership in order to safeguard the health and safety of the companies customers.
The measure was passed unanimously in the House and Senate.
Correction: Because of an editing error, a story in late editions of yesterday's Metro section about legislation passed that would allow tougher penalties against utilities incorrectly reported that state Senator Michael W. Morrissey said the bill was written in response to a poor performance by Unitil Corp. in last December's ice storm. Senator Jennifer Flanagan said the measure was in response to Unitil's performance.
