Independent report discredits Environmental Defense Fund’s defamatory claims
HARTFORD, Conn. and BOSTON, Mass. (February 27, 2018) – A new analysis conducted by Levitan & Associates, Inc., a national energy market expert, verifies that Eversource acted in conformity with regulatory obligations and industry practices when managing gas resources on behalf of customers in a three-year period, 2013–2016. Levitan’s critical assessment unequivocally disproves the inaccurate claims promoted by the Environmental Defense Fund.
“We spent several months analyzing the allegations made by EDF and have identified critical areas where they failed to account for the basic principles underlying Eversource’s obligation to its customers,” said President and Principal of Levitan & Associates, Inc. Richard Levitan. “Namely, that the company is required to have sufficient gas resources on hand to address weather fluctuations, back-stop delivery failures by third-party suppliers, and meet other demand uncertainties so that customers do not suffer the loss of gas supply during the coldest periods.”
EDF falsely alleged that Eversource and another utility manipulated the natural gas market in New England by withholding gas resources from the marketplace, increasing gas and electricity prices by 38% and 20% respectively, and costing customers $3.6 billion more for electricity over a three-year period. Levitan’s critical assessment rejects these false claims, concluding that:
- EDF failed to account for the fact that regulated gas utilities have an obligation to serve their customers with the highest level of reliability, under a range of operating conditions.
- There is no avenue by which Eversource would have benefited or profited from the alleged actions.
- The capacity quantities cited by EDF in relation to “unusual scheduling practices” represent only about 1.5%, of New England’s peak capacity and generating market, rendering it “inconceivable that the theorized withholding of this infinitesimal portion of average demand, could cause wholesale power prices to be $3.6 billion higher over a three-year period.”
“This report validates what we’ve said all along, which is that our gas supply management practices are carried out on a day-to-day basis in line with industry best practices to fulfill our core public-service obligation to customers,” said Eversource President of Gas Operations Bill Akley. “As a local gas company, we are required to make sure our customers have enough gas to heat their homes, particularly on cold New England nights. Our employees work relentlessly to make sure that happens without fail.”
The full text of the Levitan report can be found here.
Eversource (NYSE: ES) transmits and delivers electricity and natural gas and supplies water to approximately 4 million customers in Connecticut, Massachusetts and New Hampshire. Recognized as the top U.S. utility for its energy efficiency programs by the sustainability advocacy organization Ceres, Eversource harnesses the commitment of about 8,000 employees across three states to build a single, united company around the mission of safely delivering reliable energy and water with superior customer service. For more information, please visit our website (www.eversource.com) and follow us on Twitter (@EversourceCorp) and Facebook (facebook.com/EversourceEnergy). For more information on our water services, visit www.aquarionwater.com.