Politics & Government
Dunn complains that Eversource was irresponsible during storm
First selectman says town reaffirmed AAA bond rating, got low interest rate to finance borrowing for new Huckleberry Hill Elementary School
By Scott Benjamin
BROOKFIELD – First Selectman Steve Dunn says the slow response to electricity outages from Tropical Storm Isaias was due to Eversource, the utility, being a monopoly.
“The picture on the first page of their annual report is about how their stock has beaten the S & P [Standards & Poor’s] 500 over the last 10 years,” he said. “That’s not why they are there. They are to provide reliable and reasonably priced electricity with a system that works all the time, and also giving a return to their investors.”
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“Do you think it’s really reasonable that a monopoly gets to beat the S & P 500 over the last 10 years?” declared Dunn, a retired vice president with J.P. Morgan Chase.
The first selectman said that he believes that Eversource tried “to save money and endangered people’s lives” during Tropical Storm Isaias by not immediately dispatching an adequate number of crews to Connecticut.
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“Eversource is a monopoly,” Dunn said. “Eversource is making bad decisions.”
“What frustrated our residents was that they were driving around for three days and they never saw an Eversource crew, “he said in an interview.
Some residents were without electricity for more than a week.
“The mistake that Eversource made here was trying to save some millions of dollars and not sending in the crews right away,” Dunn said. “They should have immediately called them in and then if there wasn’t much damage, send them home.”
“My opinion is that they tried to save money and endangered people’s lives,” the first selectman remarked.
NBC-TV 30 Connecticut reported on August 4, the day that Isaias reached the state, that there 695,000 people without electricity.
He complained that Eversource also failed to have a plan to “assign their crews” and that some of the crew members were assigned to hotels as far away as Boston and New Jersey, which reduced their availability to work.
“They didn’t book hotel rooms for them right away so that they could be in the area,” said Dunn.
“Eversource should be forced to prepare for the worst possible situation,” he said. “Some people lost food and other supplies because of the incompetence in how Eversource handled it.”
On another topic, Dunn said that this spring, after the federal government approved the $2.2 trillion Cares Act stimulus package, state officials sent a brief letter to municipal leaders with a one-sentence request on how much money they would need to address expenses through June 30, the end of the fiscal year.
He said the state had received $110 million from the federal government for municipal aid and it would cost about $10 million in administration – meaning that roughly $100 million would go to the towns and cities. However, he said only $30 million was administered.
“What are you doing with the other $70 million?” said the first selectman. “Connecticut has gotten a lot of money. We’re not seeing it going to the municipalities.”
Dunn said the municipal budget for the current fiscal year includes $800,000 for contingency costs that can be used to address costs related to the pandemic.
He said the town may receive assistance from FEMA, the Cares Act or future stimulus, but municipal officials are anticipating that town funds will have to be utilized.
“We’re experiencing some expenses,” Dunn said. He said he believes there needs to be additional stimulus beyond the $2.2 trillion Cares Act that was approved on March 27.
He said the congressional and White House negotiators should have reached an agreement before the end of July, when some unemployment benefits expired.
They were not able to reach an accord before Congress entered its August district work period.
“To just walk away for a month. That doesn’t make any sense to me,” Dunn said.
The first selectman said he has a son who is a social worker in Massachusetts and there were 23,000 phone calls in one week after the unemployment benefits expired.
“I’m sure Connecticut is going through the same thing,” Dunn exclaimed.
The New York Times reported on August 8 that the recent executive actions taken by Republican President Donald Trump will not provide additional aid to states and municipalities. Among those actions was a suspension of the payroll tax.
Dunn said the payroll tax suspension is “good,” since it will provide more money for consumers, but he questioned whether Trump’s action is legal, indicating that it might be reversed in court as were some of the executive actions taken by former Democratic President Franklin Roosevelt during the Great Depression in the 1930s.
“I think the pandemic has been particularly difficult for some of our small businesses,” Dunn remarked. “A few of them might not reopen.”
“Without a vaccine, people are going to continue to hunker down and continue to self-isolate,” said the first selectman. “Less money will be spent.”
He said he believes there is a “fair chance” that there will be a vaccine by next spring.
Dunn said there still is “significant demand” at the municipal food bank and for assistance from the emergency fund. However, he said “It is not as high” as it was during the earlier stages of the pandemic.
On a separate topic, Dunn said that the construction on the new $78.1 million Huckleberry Hill Elementary School (HHES) should commence by next summer, as had been scheduled.
He said the town borrowed $35 million this summer for the first phase of construction after Standard & Poor’s reaffirmed its AAA bond rating, the highest rating possible.
Dunn underscored that the town’s 10-year plan had anticipated that the interest rate on borrowing would be “four to six percent” and it ended up at 1.55 percent, which will save considerable money over the 20 years.
He said that state Rep. Steve Harding (R-107) of Brookfield “has been incredibly helpful” and has assured him that the town’s application for reimbursement funds will almost certainly be approved by the state Bond Commission. That funding would reduce the municipal tax payment to $63.3 million.
Dunn said due to the pandemic, the Bond Commission will probably consider applications for the last fiscal year in September and will then take action next spring on the newer applications, including the one submitted by Brookfield.
The school will be built on the same parcel as the current HHES on Candlewood Lake Road and will instruct students in pre-kindergarten through fifth grade. Voters approved the project in March of last year at referendum.