OLR Report 2011-R-0385 explains the Massachusetts law that levies fines on utilities that do not restore service in a reasonable amount of time after a major outage event.
In 2009, the Massachusetts Department of Public Utilities (DPU) investigated the extent to which Unitil (operating as Fitchburg Gas and Electric) properly prepared for and responded to a major ice storm in the winter of 2008. DPU found that Unitil had failed to restore service to customers in an efficient, effective, and timely manner and this constituted a failure to meet the company’s public service obligation to provide safe and reliable service. While DPU concluded that Unitil’s performance might warrant monetary penalties, it concluded that it did not have authority to fine the company.
In 2009, the Massachusetts legislature adopted an act that (1) required DPU to adopt rules and regulations to establish standards for emergency preparation and restoration of service for electric and gas companies and (2) establishes penalties for violation of these standards. It required each electric and gas company to file an annual emergency response plan with DPU for its review and approval. The plans must be designed for the reasonably prompt restoration of service after a storm or other emergency. The act authorizes the courts to appoint a receiver to take over operations of a small electric or gas company during an emergency if the court determines that the company (1) has materially violated DPU standards for responding to emergencies or (2) based on other compelling evidence will not be able to comply with such standards without a receivership. The act also expanded the powers of the DPU chairman regarding electric, gas, and water utilities during emergencies.
