Milford Electric Ratepayers Swindled Again

By Pat Eaton-Robb

HARTFORD -- Connecticut Attorney General Richard Blumenthal announced Monday he has launched an antitrust investigation into the operator of New England's power grid and some power generators, alleging they swindled consumers out of almost $86 million.

Blumenthal said the generators failed to provide "a watt of power" despite being paid under a federal rule that calls for them to supply the region with electricity when requested by ISO-New England, which runs the grid.

He said the generators have received $85.8 million since 2006, but failed to provide any power when asked on 108 separate occasions. Most of those requests came during peak demand and had to be met from other generators, leading to duplicated costs to consumers.

"This swindle is unconscionable, especially in time of economic distress," Blumenthal said.

He said he also has asked the Federal Energy Regulatory Commission to launch its own investigation into ISO-New England and to compel the generators to return the money.

"ISO-New England's failure to stop this scam demonstrates once again that it sides with generators against ratepayers, allowing them to pillage the pockets of consumers and businesses," Blumenthal said.

Ellen Foley, a spokeswoman for ISO-New England, said the company would submit information to FERC in response to the attorney general's concerns. She would not comment on his allegations.

FERC officials were unaware of the allegations
and had no immediate comment, a spokeswoman said.

Blumenthal said ISO-New England has refused to provide his office the names of the power generators that were paid.

He also called for reforming the federal rule to ensure that no generators receive money unless they actually provide the region with electricity.