CL&P And Northeast Utilities:

Suspend The Dividend

To the Editor:

The power outages that have occurred recently in Connecticut have been frustrating to say the least. The latest extended outage was particularly disturbing as we had unusual cold temperatures that week. We have all been through and heard the horror stories of freezing in our own homes, and shelling out hundreds, if not thousands of dollars for generators, gas, hotel rooms, etc.

The biggest failure of CL&P in my opinion is not their lack of communication with its customers, but it is their failure and negligence to properly maintain their own assets (their lines, transformers, poles) over the last 25 years. Hurricane Gloria, which occurred 25 years ago, was a wake-up call to all of us, but mostly to utility and all infrastructure companies like CL&P. Despite having 25 years to adequately trim and cut the intertwined trees and maintain their own equipment, they have done relatively nothing to proactively minimize outages for over 25 years. The trees are so intertwined with their equipment all over Connecticut that is obvious what will happen with a little extra wind or heavy snow. God forbid there is a category 1 or 2 hurricane; we will likely be out for weeks on end.

It is CL&P’s responsibility to maintain their own equipment and instead of maintaining their own equipment, Northeast Utilities, which owns CL&P, has paid out hundreds of millions of dollars in dividends year after year. That money should be better used to proactively maintain their own equipment and minimize outages. The $10 million dollar fund Northeast has proposed to establish is a ridiculously low and offensive amount of money, when Northeast paid out $186 million in dividends in 2010, $167 million in 2009 and so on. If you look at the dividends that have been paid out over the last ten years it is in the billions of dollars. This money could have been used to bury the lines, never mind some tree trimming that has not been done.

All of us, including our elected officials, should call for an immediate suspension of the Northeast dividend so that money could be used to improve their own infrastructure and provide decent service. The dividend is a luxury that companies pay to reward their shareholders with the company’s excess cash flow. So, to generate this excess cash flow to pay the dividend, Northeast and CL&P have its customers pay one of the highest utility rates in the country, allowed their own assets to fall in to disrepair, and provide the worst service to their customers that they can get away with.

Calling for the suspension of the dividend of a public company so they can make things right is not unusual or unreasonable. When BP spilled oil all over the Gulf they suspended their dividend and their CEO resigned because what they did was unacceptable. When things become unacceptable change is needed. Suspend the dividend of Northeast Utilities, and do not reinstate the dividend until our one and only public utility company can adequately service its customers.

Joseph V. Barranca

31 Old Farm Hill Road, Newtown                       November 23, 2011