Connecticut Regulators Cut $500 Million from Eversource’s Storm Cost Request

Connecticut’s Public Utilities Regulatory Authority (PURA) issued a final decision on July 29, 2026, approving approximately $861 million for recovery of storm-related costs incurred by Eversource Energy between 2018 and 2023, but disallowed nearly $500 million of the original request, primarily by rejecting retrospective carrying charges and imprudent expenses.

This ruling allows Eversource to recover those approved costs through securitization—long-term, low-interest bonds—while excluding accumulated interest charges prior to regulatory review. The final collection amount, after offsetting previously recovered charges and mutual aid credits, is approximately $668 million payable by ratepayers going forward. The decision also denied the utility’s retrospective carrying costs entirely.

Background and Regulatory Review

Eversource had earlier filed for roughly $1.36 billion to recover deferred storm restoration costs spanning major events across five years, including over $300 million in carrying charges. Following extensive investigation, PURA disallowed approximately 40% of the request, citing excessive or unsupported expenditures—such as inflated staffing, private jet hire for crew transport, combining separate storm events for cost calculation, and overpayments for food and lodging.

The Office of Consumer Counsel (OCC) played an instrumental role in the review, highlighting widespread imprudence and recommending deep reductions from staffing, vendor over-deployment, compliance gaps, and improper costs in its April 2026 brief.

Outcomes and Reactions

Please see below a breakdown of the final decision:

• Storm cost recovery approved: $861 million of prudently incurred storm-related costs.
• Total to be securitized and collected: $668 million after subtracting $101.5 million already recovered and a $100 million RAM offset.
• Carrying costs: Retroactive interest charges disallowed entirely; only accruable post-decision.

Attorney General William Tong hailed the decision as “an important victory for Connecticut ratepayers,” emphasizing PURA’s correct refusal to allow recovery of unvetted interest charges. OCC’s Claire Coleman echoed the sentiment, stating the final disallowances reflect needed accountability and prudence in utility rate proceedings.

Implications for Eversource and Ratepayers

For Eversource, the decision marks a substantial reduction in recoverable costs and tightens regulatory oversight over storm recovery claims. While securitizing the approved costs may lower immediate bill impacts for customers, the denial of carrying costs limits the company’s ability to recover financing charges retroactively.

Ratepayers benefit from immediate savings and strengthened cost discipline, though they remain responsible for the approved recovery via securitization. Local officials and consumer advocates may continue to scrutinize future filings, especially as Eversource pursues base rate increases and must adhere to stricter prudence standards.

Looking Ahead

As Eversource proceeds with securitizing the approved storm expenses, observers will monitor the structure and rate impact of the bonds. The company may also appeal or seek reconsideration of disallowed amounts. Additionally, PURA’s approach may set precedent for how utilities navigate future storm cost recovery, emphasizing documentation, oversight, and prudence.

Longer term, Eversource’s next rate case will be subject to heightened scrutiny, with regulators and advocates expected to demand transparency and cost justification. This outcome reinforces that ratepayer protections remain central to Connecticut’s utility regulation.