Bloomberg News

Northeast Utilities Increases Storm Fund to $30 Million

November 29, 2011

(Updates with comment from chief executive in sixth paragraph.)

Nov. 29 (Bloomberg) -- Northeast Utilities, owner of Connecticut’s largest utility, tripled the amount of money it has set aside for customers who lost power after an Oct. 29 snowstorm and said the fund will be administered by Kenneth Feinberg, the lawyer who oversaw payments to the families of victims of the Sept. 11, 2001, attacks in the U.S.

The company boosted the fund to $30 million from $10 million.

The initial sum was “insufficient,” Chief Executive Officer Charles Shivery said in a statement today.

The reaction to the storm by Connecticut Light and Power, a unit of Northeast Utilities, is being studied by a panel formed by Connecticut Governor Dannel Malloy, a Democrat. Connecticut Attorney General George Jepsen has asked state regulators to review how the utility responded to the storm, which left some residents without power for more than a week.

Feinberg, who designed and administered the Sept. 11 Victim Compensation Fund, agreed to help run the fund at the request of Governor Malloy, according to the statement.

“Today’s announcement demonstrates our sincere desire to keep faith with our CL&P customers by assisting those who were without power the longest,” Shivery said in the statement.

Jeffrey Butler, CL&P’s president and chief operating officer, resigned Nov. 17.

--Editor: Charles Siler, Tina Davis

To contact the reporter on this story: Mark Chediak in San Francisco at mchediak@bloomberg.net.

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net.


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