Into the Breach

On behalf of the Office of the Consumer Advocate, Staff Attorney Michael Crouse has formally asked the state’s utility regulators to fine Granite State Electric Company —which does business under its parent company’s name, Liberty — $250,000 pursuant to RSA 365:41. Attorney Crouse also called for a $10,000 fine against Algonquin CEO Christopher Huskilson pursuant to RSA 365:42. Since Algonquin Power & Utilities Corp. owns Liberty, Mr. Huskilson, as its CEO, is ultimately responsible for Liberty’s failures, addressed below.

As the OCA noted earlier this year -- see “Tree Trimming Troubles at Liberty” – this utility has reneged on its legally binding obligations with respect to vegetation management (i.e., tree trimming). The OCA filed a petition with the Public Utilities Commission to conduct an investigation into Liberty’s noncompliance with its legally binding obligations — specifically the Settlement Agreement that emerged from Liberty’s most recent rate case, Docket No. DE 19-064, and with the Commission’s applicable rule, Puc 307.10. The OCA’s petition resulted in Docket No. DE 24-073.

Rule Puc 307.10 establishes minimum criteria that an electric distribution utility must meet, including pruning trees adjacent to all distribution circuits on no more than a five-year cycle. However, the Settlement Agreement, which Liberty entered freely, committed the utility to a stricter, four-year trim cycle obligation.  The PUC-approved settlement also limited Liberty to collecting $2,420,000 annually from its customers for tree trimming. Since the Settlement Agreement was approved by Commission Order 26,376, the Settlement has the force and effect of law.

To put this into context, for Liberty to be on a four-year trim cycle, it will need to complete approximately 214 miles of tree trimming annually. In 2023, Liberty only completed 146 miles. Regrettably, 2023 was not unique. Presently, Liberty faces a backlog of over 214 miles, or approximately a year’s worth of work. Meaning, Liberty has allowed an increasing inventory of deferred vegetation management work to build up since the settlement agreement was approved four years ago.

Thus, at issue is: Who pays to clear up Liberty’s backlog? How would you hold a miscreant utility accountable?

Consistent with RSA 365:23, Liberty has a duty to observe and obey every requirement of a Commission Order, and to do everything necessary or proper to secure compliance with and observance of the same by all the officers, agents, and employees.

Therefore, on behalf of residential customers, the Office of the Consumer Advocate has formally asked the Public Utilities Commission to fine Liberty $250,000 and Mr. Huskilson, as the person ultimately responsible for Liberty’s underperformance, $10,000. Further, the OCA maintains that Liberty is responsible for the cost of addressing its vegetation backlog and that it cannot recover the cost of its underperformance from its residential customers pursuant to the DE 19-064 Settlement Agreement. As stated in the OCA’s earlier press release, Liberty cannot continue to defer its legally binding obligations and expect to impose on its customers the increasing cost of work it should have already performed.

Please follow Docket No. DE 24-073 for updates on the investigation as it progresses.