Annual Penalty OK’d For English Station Mess

Nora Grace-Flood photos

The English Station power plant, hidden behind graffiti, back in May.

United Illuminating will have to pay up for breaking a promise to remediate a Fair Haven power plant after state utility regulators formally accused the company of mismanaging English Station — and of failing to prioritize New Haven residents over profit.

In a nearly 300-page decision filed on Friday rejecting a proposed rate hike by the regional company, the Public Utilities Regulatory Authority (PURA) further cracked down on United Illuminating for stalling on its commitment to clean up the power plant at 511 Grand Ave. that they formerly owned and operated for decades. 

Read that final PURA decision, which deals with English Station beginning on page 98, here.

The authority finds that the company has not managed the English station remediation with economy, efficiency or care for public safety,” PURA’s decision reads. The company has demonstrated a willingness to prioritize the company’s and shareholders’ interest over ratepayers and its obligations as a public service company.”

The authority has officially imposed a 20-basis point reduction on the company’s return on equity for each year that United Illuminating does not comply with a partial consent order they signed with the state in 2017. In that partial consent order, the company agreed to put $30 million towards investigating and completing a remediation of the site known as English Station — which is reportedly polluted with carcinogens, polychlorinated biphenyls, heavy metals and other contaminants produced over the years UI burned coal and oil on scene — over three years.

PURA wrote that the penalty, which UI estimated would amount to a fine of around $1.63 million per year, is warranted to incentivize the company to fulfill its obligation to remediate the site.”

Read in more detail about PURA’s critique of the company here. They argued that UI had committed to remediate the site not only with the state, but as a condition of a business merger that the authority itself signed off on between UI and the energy company Iberdrola. 

Six years later, PURA stated that UI has spent just over half of a $30 million sum they’d promised to allot towards site remediation within a three-year time frame. PURA pointed to turnover of six different managers for the project under UI’s watch as evidence of mismanagement and critiqued graffiti covering the station’s fences and gates as proof of poor site security.

That mismanagement, PURA asserted, has deprived the state and its residents both economically and environmentally.” 

The financial penalty, PURA determined, will remain in effect until the company complies with the conditions of the remediation as laid out in the partial consent order with the state and the merger decision.

UI spoke out against a draft decision issued by PURA in early August which articulated the above claims. They denied accusations of mismanagement and suggested that PURA was operating out of the scope of their own powers by proposing a financial penalty. Asked for comment about PURA’s final and formal decision to move forward with the fine, UI Spokesperson Sarah Wall simply wrote: We are evaluating PURA’s decision.”

State Attorney General William Tong, meanwhile, released a press release praising the state regulatory agency for seeking to hold United Illuminating accountable for their actions, or lack thereof. 

United Illuminating has utterly refused to meet its commitments to remediate English Station,” Tong wrote in a statement. United Illuminating can stop this annual penalty at any time by getting serious about their clear obligations under the law. And if a $2 million annual penalty isn’t enough to convince United Illuminating of their legal obligations, I will continue to do everything in my power to compel the company to clean-up English Station and honor their commitments to the New Haven community and the state of Connecticut.”

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