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Audits, procurement and mobilization practices draw scrutiny in Eversource storm hearing
Summary
Cross‑examination explored third‑party revenue audits, right‑of‑first‑refusal agreements, vendor mobilization/demobilization and wire‑guard contracting. Eversource said ROFR guarantees hours but not higher rates and that revenue audits have identified contract and classification issues; the company agreed to provide audit findings and vendor usage details in late files.
Interveners used the hearing to press Eversource on procurement practices and third‑party audit findings that could affect net recoverable storm costs. Company witnesses described ongoing revenue audits, contractor settlement activity and ROFR clauses that were invoked to secure critical crews during pre‑storm mobilizations.
Revenue audits and settlements: The company reported that a third‑party revenue audit produced findings for several large contractor aggregators. Eversource said a settlement with one vendor (Midcon) was finalized recently; other audits remain in dispute. The company agreed to provide supporting audit evidence for Midcon and to describe contracting issues auditors raised (examples include labor/equipment classification differences and subcontractor pass‑throughs).
ROFR and mobilization: Supply‑chain witnesses explained the right‑of‑first‑refusal (ROFR) practice: when a contractor reports being asked by another utility to work elsewhere, Eversource can hold the contractor within a short two‑hour window by guaranteeing a minimum of three days at contracted rates. The company emphasized ROFR guarantees hours, not higher hourly rates. Witnesses also explained how mobilization/demobilization costs are allocated to the jurisdiction where the work was performed or where the crew finished its assignment.
Wire guards and special services: Parties requested vendor lists and usage counts for wire‑guard services (safety personnel who isolate hazards at wire‑down locations). Eversource said wire‑guard contracts were competitively solicited in the Northeast and that internal availability and proximity factor into which vendors are engaged on a storm‑by‑storm basis.
What to expect: The company committed to late‑filed exhibits listing contracted ROFR activations, audit findings for Midcon, and wire‑guard procurement details so PURA and interveners can reconcile invoiced amounts and audit findings against the filed cost exhibits.
