Yankee urges PURA to preserve deferrals for remediation of 14 MGP sites
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Summary
Yankee told PURA it needs the ability to defer environmental remediation costs for 14 manufactured‑gas‑plant sites across Connecticut, arguing fixed annual allowances in the final decision are insufficient when on‑site conditions or partner requirements (DOT, towns) force accelerated work.
Yankee told commissioners it has 14 MGP remediation sites across Connecticut — in Bristol, Danbury, Danielson, Meriden, Middletown, New London, Norwalk, Putnam, Shelton, Wallingford, Waterbury, Willimantic and Winsted — and argued the final decision’s fixed annual remediation allowance is inadequate to respond to dynamic field conditions and partner mandates. The company said it is not seeking a rate increase now but asked for authority to defer prudently incurred remediation costs for later recovery, subject to demonstration of prudence in the next rate case and with transparency filings (e.g., semiannual or annual reports) to PURA.
Yankee cited historical practice dating back to at least 1993 and a 2010 Yankee decision where remediation deferrals were allowed. Company witnesses said a prior over‑collection (about $8.5M previously) reflected that spending patterns changed during the COVID period and that as sites move from investigation to remediation costs are likely to rise. Commissioners pressed Yankee on whether remediation work would be slowed; the company’s VP for environmental said health and legal compliance would not be jeopardized but acknowledged funding limits could affect the pace of remedial cleanup unless deferral authority is preserved.
OCC and AG responses at the hearing focused on other docket issues; commissioners asked PURA staff to consider whether the final decision’s language already permits deferrals or whether explicit clarification is needed.
