ML20237A055

Newsarticle Entitled, Dept of Public Utils Blasts Edison, Cites 'Paralysis' at Top

ML20237A055
Person / Time
Site:	Pilgrim
Issue date:	06/27/1986
From:	Butterfield B BOSTON GLOBE, BOSTON, MA
To:
References
CON-#487-5042 2.206, PR-860627, NUDOCS 8712140222
Download: ML20237A055 (2)

Text

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I rect." The company stated it has $h [h' By Brum D. Butterfield Gbbe Staff .

agreements on four new sources of , iT dE 'lj [ ,.

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In a scathing indictment of ' power.and is negotiating four Boston

• Edison, the state' Depart. 7more. .Together, Boston Edison 1i Q gg, g g %g.1 4: ,-

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?; l ment d Public Utilities yesterday said, those sources will give the [i., jt @M%y p ' *g r.g NM.. y i i

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accused the' tempany's manage., . utility an additional power supply . " C .d@?d.$  ?-

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. ment'of being " paralyzed".to,the' equal to half the power generated N j p g ,

point where offleials are no longer. by New Englahd's largest plant.:.

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. .lf. Boston. Edison.c'ontinues at a time when. Boston Edison is ,M -h i h:. - (M. a M i h [k[.I, ,3 along its current path.;the DPU rek .under .beavy.critkism from feder- ;ph 01 N '

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.4 w Nu Regulaigy Cornmtanton; D tm w:r ded it one TU}eS[inVOhA'j E , Ji g [PU said.'l.y.Tlie 300-page report"on theofina the has netion's d

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ier.testerdsy)h DO y Iny said the problems at Pil .

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,utilit .*a of dhtetors  %. s.... dmong'..other! things,$;grimand ,c. .

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[wthat the co{mpany is ahonersseo :p-neca on said that in ter== of manneement falling to plan hare' 4

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.alme, the Pilgrim. problems f.(kSl$Vg.~h%,.d. "may.  ; ?M  ;

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.)l tr 3.gbe symptomatic":;orhton Kdisi... t. cc u: qy. ram  ;;;

gs1 (cl.rsss"mi lion;rateindea'se:@f;.pa's The DPUused unusually entireharshy operationny g;*l1 '

poughtM.the'utinty, Twitch:npu d N, des @ bin' g, Boston. Edih i. q{ Q S' e , [C O n [ P.'ss ' n i*

),of0cials?saldjsparkeditheir'e.six3.,'.W0f s,. month-lnguiry.;was -;p. , ,c,g g [+EdisonPp~ turned I down. D] sonr.l . Mana lyesterday.c"They'ididn'Cideserve$.one point saying i had Tabdicat .., "?

Paul F.'140C.DPlf qed'.'/ tts . responsibility to-run:the~r W B, oston Mb .)a 9j an_tocrease."lded see rtigendhSPmpany.She.decisio6 by- ?fy(dent) Stephen %

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Li thereport and rate decisionc qnent t6De6diabh sdalon 7.J A4 Sweene7 iflurWea gyt.W BostonTEdisonLissued LItItg directorXcopy of its lengthy, rep Wcerp,tfrom EDg/JtiliM 2;5

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. DPEblasts Boston Edison ,

for management ' paralysis' O BOSTON EDISON ties." he said. "You've got to devel- c!alon on its request for a rate hike Continued from Page ! , op your own plan." that was released as part of the The DPU said company man- management investigation report.

signal to the board of directorslof agement was the DPU lowered the utility's al-Boston Edison] and the sharehold- mental changesin*,lgnoring the industryfunda-lowed rate of return on common ers that all is not well with this rege rding planning and conserva- stock from 15.25 percent to 12 company." levy said. {

Uon, den blaming reguhtom for percent.

The DPU report focuses on 1,ow what it called the utility's own pa- . The DPU said that while Bos- l much power the region. with its ralysis, ton Edison s expenses have risen j booming economy, will need and when. The DPU stated that in the To compound problems, the over the ,last two years, its bust-DPU said, Boston Edison bas ness has expanded and largely 12st two years Boston Edison man- failed during the last two years to has made up for increased costs. ,

egement has failed to develop a enact any meaningful conserva- Further, the regulators reject-

"mnerete" plan for new cources originallyexpec to be Don programs, and, n fact, has ed. as part of the overall rate hike, needed in 1991, and now expected adopted policies tha essentially a Boston Edison request for cus-to be needed as early as 1988.

rule out such programs. tomers to pay for $927.000 in bo-Of the lack of planntog and - nuses to utility managers. "We j Boston Edison's strategy has been to avoid bulk!!ng cosuy new conservadon Levy said: "It's a find it unconse:onable to permit "

t power plants. Instead, the com- prescription for failure." ratepayers to pay a bonus for In-piny has attempted to buy power The DPU also criticized Boston adequate management." the DPU ' [

from other utilities and small en- Edison's maintenance system and stated.  ;

ergy producers. The DPU report concluded the company was 'not A spokeman for Boston Edison charged Boston Edison with want- meeting its qwn standards of reli- said company ofDetals were re-ing its costs for new construction ability. It ordered the mmpany to viewing the DPU report and may guaranteed by ratepayers. , upgrade its maintenance, specift, have more detailed comment on it Levy. however, s'.rongly crtu- cally in the South End of Boston later. In its statement yesterday, cized the strategy. "You can't go and in Brookline, the company declared: "The man- l forever not doing anything, and There was other bad news for agement of Boston Edison Co. has being dependent on thc other ut111- Boston Edison yesterday. In a de- not now nor will it ever abdicate its obl!gation to serve its custom-p ers."

The . company said the con-tracts for more power that it has secured or for which it is negotiat-ing will give the utility the power it needs at " greatly minimized" grisks to the consumer.

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