Month: August 2020

Senator Osten, Southeastern Connecticut Democrats Ask Gov. Lamont to Re-open Job Centers

As pandemic continues and jobs disappear, Southeastern CT needs more resources for jobseekers, Democratic lawmakers argue

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SOUTHEASTERN CONNECTICUT – State Senator Cathy Osten (D-Sprague) and eight other members of Southeastern Connecticut’s Democratic legislative delegation have written Governor Ned Lamont asking him to re-open the American Job Center office in Montville in order to assist unemployed jobseekers in the region with job placement, re-training and acquiring new skills.

In the letter dated August 17 (below), the Democrats note that their legislative offices have been inundated with calls and emails from constituents in desperate need of a job. The letter was signed by Sens. Osten and Norm Needleman (D-Essex) and by Democratic state Representatives Kate Rotella, Anthony Nolan, Emmett Riley, Kevin Ryan, Brian Smith, Christine Conley and Joe De La Cruz.

“On numerous occasions, we have requested that the Department of Labor re-open their American Job Centers to assist workers who need to file an unemployment claim, need assistance looking for work, and to provide workforce services for our veterans, businesses, and dislocated workers,” Democrats wrote Gov. Lamont. “With adherence to proper social distancing and face mask requirements, along with thorough cleanings of these facilities, we see no reason why these jobs centers cannot be re-opened in a similar fashion to our state’s DMV branch offices.”

“I keep hearing how well Connecticut is doing with daily COVID testing figures and public compliance with mask-wearing and social distancing, and how state government has opened DMV offices and is preparing to re-open public schools and universities. Well, if it’s good enough for those agencies and those needs, we can certainly find a way to re-open Connecticut’s job centers in the midst of a national economic downturn – especially here in Southeastern Connecticut,” Sen. Osten said today. “I know eastern Connecticut is often out of sight, out of mind with some people. Hartford and New Haven are in the center of the state and they’re not doing as badly. But two of the largest employers in the state, Mohegan Sun and Foxwoods, are in my district, and they are laying off employees. Connecticut has the means to help people with our network of successful and proven job centers, and these centers should be reopened ASAP.”

On its website, the state Department of Labor advises Connecticut jobseekers that the American Job Center offices remain closed to the public due to the COVID-19 pandemic.

The American Job Center system is a partnership of organizations working to promote a universal approach to providing effective workforce assistance to Connecticut job seekers and businesses; comprehensive and affiliate job centers are located throughout the state and offer walk-in resources to anyone, regardless of their employment status.

There are comprehensive American Job Centers in Bridgeport, Hamden, Hartford, Montville, New Haven and Waterbury, and smaller, affiliate American Job Centers in Ansonia, Bristol, Danbury, Danielson, Derby, East Hartford, Enfield, Manchester, Meriden, Middletown, New Britain, Stamford, Torrington and Willimantic.

According to the latest statistics, the Norwich-New London-Westerly, Rhode Island labor market area has suffered the largest year-to-year drop in total nonfarm employment of any labor market area in the state, down 14.2% from July 2019 to July 2020.

For comparison, the overall state nonfarm employment rate is down 8.5% over the same time period, with the Hartford labor market area off just 7.2% and the New Haven labor market area down 6.9%.

Construction, manufacturing and financial sector jobs remain essentially strong in Southeastern Connecticut, but state and local government jobs in the Norwich-New London-Westerly area – which includes employment with the Mashantucket and Mohegan tribal nations – are down 25.6% year-to-year, or 6,900 jobs lost, which is three to five times higher than any other labor market area in Connecticut.

And Southeastern Connecticut’s leisure and hospitality industry has also been hit exceptionally hard, with food service, restaurant and drinking places losing 42.6% of their employees since July 2019 – a loss of 6,400 jobs.

The delegation letter:

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August 17, 2020

Honorable Ned Lamont
Governor, State of Connecticut
Executive Chambers
State Capitol
Hartford, CT 06106

Re: Re-Opening of American Job Centers

Dear Governor Lamont,

We have an immediate concern that could be easily remedied. We need the American Job Centers opened.

As you know, hundreds of thousands of Connecticut workers have filed unemployment claims as a direct result of the COVID-19 pandemic; many of them for the first time in their lives. While the Department of Labor continues to process these claims, our offices remain inundated with calls and e-mails from constituents from all walks of life in desperate need of a job. Many have lost employment from long-term career resulting in a need for new job skills. Training is a desperate need as workers look to the future.

On numerous occasions, we have requested that the Department of Labor re-open their American Job Centers to assist workers who need to file an unemployment claim, need assistance looking for work, and to provide workforce services for our veterans, businesses, and dislocated workers. With adherence to proper social distancing and face mask requirements, along with thorough cleanings of these facilities, we see no reason why these jobs centers cannot be re-opened in a similar fashion to our state’s DMV branch offices.

In addition, the latest unemployment figures indicate that southeastern Connecticut has been the hardest hit region of our state during this pandemic. In light of these undisputed facts, therefore, we would like to respectfully request that you order the immediate re-opening of the Montville American Job Center in eastern Connecticut. It is imperative to our regional and state economies that we do everything possible to assist those workers who may need to continue to file weekly claims for unemployment as well as those who need assistance re-entering the state’s labor market in new fields.

Again, thank you for your attention to this critical and urgent matter.

Sincerely,

Catherine A. Osten

State Senator, 19th District

Norm Needleman
State Senator, 33rd District

Kevin Ryan
State Representative, 139th District

Brian Smith
State Representative, 48th District

Kate Rotella

State Representative, 43rd District

Christine Conley
State Representative, 40th District

Anthony Nolan

State Representative, 39th District

Joe De La Cruz
State Representative, 41st District

Emmett Riley
State Representative, 46th District

Cc:
Paul Mounds, Jr., Chief of Staff
Kurt Westby, Commissioner, Department of Labor

Senator Osten Supports ‘Take Back Our Grid’ Legislation

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For decades, every major storm or weather event in Connecticut has produced widespread and prolonged power outages. After the storm passes, utility companies claim to have learned their lesson, but their performance continues to disappoint. It’s time to demand better.

Today, state Senator Cathy Osten (D-Sprague) announced her support for the proposed “Take Back Our Grid Act” legislation to ensure that Connecticut’s public utilities are truly accountable to the public — the customers they serve — rather than to shareholders. The legislation was unveiled Monday by the Democratic co-chairs of the Energy & Technology Committee.

“Connecticut consumers shouldn’t be paying one of the highest prices in country for electricity and then have that private-sector power company turn around and take five days or longer to restore power after a wind storm. That’s not what they’re paying for and that’s unacceptable,” Sen. Osten said. “Just this morning I met with Norwich Pubic Utilities executives to discuss how their response to Tropical Storm Isaias was so different and so much better from Eversource’s response and even United Illuminating’s. The legislature needs to explore why these expensive, behemoth power monopolies can’t perform at a level even close to our smaller, less-expensive regional power grids. I’m sure there are lessons to be learned and best practices to be shared.”

Here is an overview of what the proposed Take Back Our Grid Act will do:

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I. Justice for Ratepayers: Hold Electric Distribution Companies Legally Liable

Currently, the law essentially absolves electric distribution companies from being held liable for costs incurred by citizens during extended power outages. That must change. Electric distribution companies are a critical infrastructure supplier, and our legislation will hold them liable for any interruption of service.

Compensation for Consumers & Required Back-Up Generation

During power outages, this legislation requires the electric distribution companies to compensate each residential customer who loses power and does not have it restored within 48 hours $100 a day until their power is restored. The legislation also requires the companies to compensate customers up to $500 for medication that expires due to a commercial power outage lasting 48 hours or longer. In neither case will the company be able to seek rate recovery for this customer compensation. While our legislation cannot assist customers harmed by the utilities’ response to Tropical Storm Isaias, we urge power companies to voluntarily embrace this opportunity to do right by their customers and offer compensation for food and medication spoilage.

Furthermore, for those residential customers with “critical needs” (i.e. medical hardship customers), the electric distribution company will be required to provide back-up generation until those customers have regular electric service again in the event that a commercial power outage is expected to continue for more than 24 hours. The legislation further proposes more permanent solutions for “critical needs” customers served by consistently unreliable portions of the electric grid. If a feeder experiences a threshold number of outages in a calendar year, the electric distribution company will be required to install, at no cost to the customer, an on-site energy storage device with islanding capabilities and at least a 5kW power rating for all critical needs customers on the feeder.

Bolster the Civil Penalty Authority of PURA

Existing statutory authority permits PURA to impose civil penalties on the electric distribution companies, and prohibits the companies from recovering those penalties from ratepayers. If a civil penalty is issued by PURA in the course of investigating the electric distribution company’s emergency preparation and restoration of service, this legislation authorizes PURA to return that penalty to customers in the form of an immediate bill credit, energy assistance grants, and/or to offset the cost of necessary system upgrades.

Change Legal Liability of Utilities

Currently, electric distribution companies include overly broad disclaimers in their tariffs that attempt to limit their liability for direct or consequential damages resulting from the interruption of service. The companies must be prohibited from attempting to shirk their financial liability for damages incurred by customers as a result of the companies’ acts or omissions.

II. Reforms and Requirements for Electric Distribution Companies

Require Minimum, In-State, on Direct Payroll Staffing Requirements

For over a decade, our electric distribution companies have outsourced the power grid management to sub-contractors, while reducing their in-house, directly employed grid and powerline service workers. This legislation will require power companies to maintain proper staffing on their direct payroll to ensure rapid, local response for both expected and unexpected events. The minimum staffing requirement will be imposed by PURA, in consultation with the legislature, and will become effective immediately upon issuance of a PURA decision. The minimum staffing requirement will be determined using a cost-benefit analysis that looks at resources expended in response to the last five storm events classified as a Level 3, 4 or 5, as well as damages suffered by citizens during those outages prolonged by the unavailability of in-state personnel.

Additionally, our legislation requires the electric distribution companies to reopen shuttered regional service centers and suitably staff them with Connecticut-based grid and powerline service workers employed directly by the company and answerable to a permanent, Connecticut-based incident command management team.

Mandate the Burying of Power Lines

Our legislation requires the electric distribution companies bury power lines where possible, and mandates it in the case of new residential, commercial, industrial developments. While above-ground lines may be cheaper to maintain, protected underground power lines are more cost effective for consumers and ultimately provide greater economic benefit for the state by preventing outages. Our legislation directs PURA to develop a strategic undergrounding proposal that takes into consideration the benefits of undergrounding in light of continued and worsening storm projections, and the diminishing returns of wildly expensive vegetation management policies. In developing its strategic undergrounding proposal, PURA will be directed to consider metrics for situations in which an electric distribution company would be prohibited from recovery of the incremental costs associated with the undergrounding project, such as if customers on a specific feeder experienced more than 72 hours of outages in a calendar year.

III. Ratepayers Needs, Not Corporate Greed: Curbing Excessive Profits of Electric Providers

The present compensation system for upper management in the electric distribution companies incentivizes and rewards shareholder returns over customer service and ratepayer value. By tying C-Suite executives’ compensation, stock options, and retirement packages to stock performance, a “race to the bottom” has been created, placing the needs of consumers last. As a regulated utility, ratepayers, and front-line utility workers – not shareholders and C-suite executives – need to be the priority. This legislation rights that wrong by ….

Public Hearings on How Rates are Developed

Our legislation directs the Public Utilities Regulatory Authority (PURA – the regulators who set utility rates and regulate the utility’s operation) to open a “docket” to examine exactly how the electric distribution companies construct their rates so we can demystify why our electric rates are so high. It further takes immediate action to strike statutory provisions that have been relied on by the electric distribution companies to justify automatic cost recovery; every charge on a customer’s bill should be subject to PURA’s prudence review, and we commit to scrutinizing future legislation in which the utilities insert cost recovery language that binds PURA to approve pass-through charges. The legislation also directs PURA to review whether it is appropriate for the utilities to continue taking advantage of decoupling mechanisms, which allow the utilities to reconcile under-recoveries that occur when customers consume less energy. Finally, the legislation authorizes PURA to deny or otherwise limit cost recovery for carrying charges that are associated with the utilities’ bad debt, or for costs incurred as a result of administering a state-mandated contract. Simply put, the utilities should not make a profit on pass-through expenditures.

Ensuring Representation of Relevant Stakeholder Groups in PURA Dockets

PURA is a quasi-judicial agency and must base its decisions on evidence presented by parties that enter legal appearances in its proceedings. This leaves citizens, low-income advocates, environmental justice advocates, and even our regulators, at a distinct disadvantage to the multi-billion dollar utility companies. The current model in which we rely on the Office of Consumer Counsel to represent all customer classes and groups is vastly outdated, and clearly is not yielding results in which all customers feel represented. Instead, this legislation proposes a participant compensation model utilized in other states, which provides a mechanism by which nonprofits and customer groups can hire representation to participate in PURA proceedings.

Proposed Rate Increases Tied to Corporate Profits

When determining whether a rate increase is justified, this legislation will require the regulators to analyze the entirety of the electric distribution companies’ profits, not just the Connecticut component, prior to approving any rate increase. The legislation also empowers PURA to consider ratemaking principles that can generally be understood to make utility company executives accountable to ratepayers.

More Electric Options for Consumers & Decentralizing the Grid

Our legislation will create a more competitive marketplace by removing laws and regulations preventing customers to operate “off the grid” through solar, battery storage, and other emerging technologies. The legislation encourages the acceleration of PURA’s Equitable Modern Grid proceeding, and enhances its effectiveness by authorizing PURA to hire several key ombudsman positions that cannot be recovered for by the utilities in customers’ electric rates. Specifically, it allows PURA to hire a division of ombudsman dedicated to investigating, mediating, and resolving complaints between the utilities and customers who are trying to timely interconnect and bring on-line distributed energy resources like solar and storage.

New Local Renewable Energy Options & Further Decentralizing the Grid

This bill provides for state funding, bonding, and support for new municipal and neighborhood-sized renewable energy microgrids. These new sources of renewable energy will provide options for consumers and increased competition to the major electric distribution companies, which should drive down rates for all.

Freeze on Rate Increases

Finally, and perhaps most significantly, neither electric distribution company will be allowed to seek any new rate increases associated with the operation and maintenance of its distribution system for a minimum of two calendar years. This rate freeze will ensure a much-needed pause while the state and regulators complete the Equitable Modern Grid proceeding before PURA, which seeks to map out a comprehensive approach to modernizing the electric grid while attracting private capital and empowering consumers. Importantly, the legislation does not excuse the companies from making needed investments during this timeframe that are necessary to ensure the reliable delivery of service; rather, it puts the onus on shareholders to shoulder the costs until the companies can demonstrate that investments were made prudently and in the best interest of ratepayers. Much like any other company, they must find a way to enact these changes within their existing revenue structure – one which has provided them with almost $2 billion in profits over the last two years.

Further, even after the two-year rate freeze expires, this legislation prohibits the electric distribution companies from filing for a rate increase on a going forward basis unless the company can demonstrate that it has under-earned on its allowed recovery by a minimum of 25% for at least two consecutive calendar years. Moreover, it places a permanent prohibition on the egregious practice of utilities who seek reimbursement of costs associated with appearing in proceedings before their regulators in base rates. That is a cost of doing business that the companies should internalize.

Lastly, the legislation explicitly ties utility cost recovery associated with storm preparation and response to the performance of the company during the restoration process. Transparent metrics for response times, communication and coordination efforts, and global restoration efforts will serve as the basis of evaluating the utility’s response, along with mandatory after-action reports timely provided to the regulator in a public forum.