Utility Chief Butler Is Toast

From the CT Mirror:

Connecticut Light & Power Co. President and Chief Executive Officer Jeffrey D. Butler resigned Thursday afternoon as the state’s largest utility battles a waves of criticism over its handling of nearly 1.6 million power outages from two recent storms.

Butler had defended CL&P’s response both to an Oct. 29 nor’easter and to Tropical Storm Irene in late August, saying the company had done all it could when faced with unprecedented storm damage. The October storm dumped heavy snow on a full canopy of leaves, splintering trees and much of the power grid.

But the utility executive also had conceded in the days following the early snow that CL&P had struggled to secure private line and tree repair crews from out of state as quickly as it had hoped.

“We reluctantly accepted Jeff’s resignation,” said Charles W. Shivery, president and CEO of Northeast Utilities, CL&P’s parent company. “His commitment and dedication on behalf of our company, employees and customers have been exceptional. We thank him for his important contribution to NU, CL&P and the community. We wish him all the best.”

The utility–and Butler in particular–came under heavy fire from Gov. Dannel P. Malloy after Nov. 6, when CL&P failed to meet its self-imposed deadline for resolving the 830,000 outages caused when more than one foot of snow fell on much of northern and central Connecticut on Oct. 29.

Malloy is visiting U.S. troops in Afghanistan, but his senior adviser, Roy Occhiogrosso, indicated the administration was not surprised by the move.

“Gov. Malloy made clear that he thought Northeast Utilities needed to address CL&P’s management issues, and it’s clear that process has begun,” Occhiogrosso said. “It’s also likely that there will be other changes on other fronts as a result of CL&P’s performance in the lead-up to and aftermath of the storm.”

The utility will begin a national search immediately for Butler’s replacement, while James A. Muntz, NU’s president for transmission services will fill Butler’s post in an acting capacity, Shivery said.

CL&P also has commissioned an independent analysis of its storm responses. The utility retained Davies Consulting, Inc., an internationally recognized consulting firm, to perform the review and submit preliminary findings by the first week in January.

Butler had been the face of CL&P in the weeks following both Irene and the Oct. 29 storm, regularly appearing at daily televised press briefings with Gov. Dannel P. Malloy at the state armory.

Butler’s standing with Malloy plunged on Sunday, Nov. 6 when the company failed to meet its self-imposed deadline for restoring nearly all of the 830,000 outages caused by the nor’easter. More than 61,000 residences and businesses, particularly in the Farmington Valley and in Tolland County, remained without power early in the morning on Monday, Nov. 7.

Malloy, who had stopped standing alongside Butler during the briefings two days earlier, directed Witt Associates, a Washington, D.C.-based risk management firm led by former Federal Emergency Management Agency director James Witt, to conduct an independent inquiry into the storm response.

Malloy, who also had created a state panel to review the matter and endorsed an investigation launched by Attorney General George C. Jepsen, predicted that wrongdoing within CL&P would be uncovered before all analyses were completed.

“I presume we’re going to find some level of malfeasance,” Malloy said one day after the Nov. 6 deadline. “Those responsible will be held accountable … and we will hold them to a very high standard.” He wouldn’t rule out legal action that could lead to financial penalties against CL&P.

“They failed by their own standard. I suspect they failed by the industry standard as well,” Malloy said at that time. “I think they have a gigantic credibility problem.

The governor specifically targeted Butler for criticism and hinted that he should be removed.

“His company’s handling of this entire situation has been unacceptable,” Malloy added. “I think it is time to change the way this company is being managed.”

When asked 10 days ago whether he believed Butler should continue as CL&P’s top executive, Malloy had added that “I think that’s a good question to ask” of Northeast Utilities, which is CL&P’s parent company.

Butler also absorbed a hail of criticism from legislators after both storms.

One result of his higher profile: According to WFSB TV-3 in Hartford, a security recently has been been stationed outside his 8,000-square-foot home in Avon, one of the Farmington Valley communities especially hard hit by the Oct. 29 storm.

Butler, an engineer by training, came to CL&P in 2009 after 27 years at the Pacific Gas and Electric company in San Francisco. PG&E serves 10 million gas and electric customers.